Sherman will be repaying a developer up to $1.56 million for the extension of an arterial roadway. City Council voted in mid-December to enter into an agreement with Bluestone Partners, who will extend McGee Street as a part of a residential subdivision.

“According to our master thoroughfare plan, this subdivision does have aminor arterial that goes through it as McGee Street, which is what we are calling the street for now,” Sherman Director of Engineering Clint Philpott said.

The 31-acre subdivision is located northwest of the intersection of FM 1417 and West Washington Street. Philpott said through the project McGee will be expanded to eventually intersect with Washington Street.

In many cases, the city will pay for road projects in housing developments if the street is an arterial route. However, developers with Bluestone plan to build the street out alongside the construction of the subdivision.

“This is at its heart a housing development, and just as we would with any hjousing development, we either build the main thoroughfare or we reimburse — as we are in this case — for the developer to do the improvement,” Sherman Community and Support Services Manager Nate Strauch said. “Since McGee is a minor arterial in our master plan, the city’s policy is that we pay for that construction.”

Strauch said the $1.5 million pricetag for the project is in line with other projects where the city has financed street improvements. When compared to the full-scale of the infrastructure improvements, the $1.5 million represents 28 percent of project costs, Philpott said.