At its January meeting, the McKinney Community Development Corporation (MCDC) heard from organizations and groups wanting grants. The long-controversial city airport came asking for $30M in financing. Grant requests will awarded at the February meeting. Earlier in January, the city asked the McKinney Economic Development Corporation (MEDC) for $22.4M.
City Presentation
The city cannot use property tax money for three years
after two failed commercial airport bonds (one in 2015 for the land and another
one in 2023 for a terminal). While the city waits out the clock, its only
recourse seems to be the MCDC and MEDC.
The city of McKinney asked the MCDC for a $30M bridge
loan, either from the fund balance or by taking out sales tax bonds, until a federal
Rural TIFIA loan can be secured. This would require at least two years of
yearly $1M interest only payments. The city is prepared to have the MCDC carry
the entire loan if the TIFIA loan does not work out.
The combined $52M ask is for a budget, “proof of concept” commercial airport
they will use to woo a budget airline. There is still no firm commitment from an
airliner. Here is the specific wording from the grant application:
“The proposed infrastructure will enable development of various aviation uses on the east side of the airport. The plan is to maximize flexibility to allow for growth in the future as the market and economy dictate. The proposed terminal is a small phase one terminal that is expandable but is intended as an inexpensive terminal to prove that commercial service is viable at TKI. If commercial service is successful, future expansion would include the construction of an entirely new terminal north of the first phase. The first phase terminal would continue to offer gates for the terminal or could be repurposed as a maintenance facility and/or rental car facility.”
Both the MEDC and MCDC collect a half-cent each of sales tax revenue. That allotment translates into roughly $25M a year. The MCDC alone has saved over $47M in a fund balance for future unnamed projects—like the airport.
The MCDC left the public hearing open for the $30M
commercial grant.
Please email the MCDC board at Info@mckinneycdc.org
on agenda item # 25-2377.
There will also be a joint City Council, MEDC, and MCDC meeting on 2/18/25 at
4pm. The airport will likely be discussed.
For more background on the changing role of the MCDC, please see the following past articles:
I am VERY grateful to see this site come to life again!!! Thank you for providing this important data.
ReplyDeleteA commercial carrier is an ill-advised pipe dream. Take your pipe out Mr. Mayor.
Yes, it's an expensive pipe dream!
DeleteIt's irresponsible to move forward with this project. Does anyone really think this airport idea is viable?? McKinney has gone downhill in the last 20 years - rapidly the last 5 years.
DeleteThese fools are destroying McKinney.
ReplyDeleteMore misinformation like usual. #1 they did not ask for a loan at all from the “fund balance”. #2. they did not say at all that the MCDC would carry the loan if the TIFIA loan did not come through. They actually presented other scenarios if that did not happen which is very doubtful.
ReplyDeleteThis must be George.
DeleteThere are a whole lot of ifs in this deal...IF you get the TIFIA loan...IF you get the airliner to sign...IF, in several years, there is enough traffic at the airport...IF PFCs generate enough income to pay, etc.
DeleteLOL that is definitely George.
Delete"#2. they did not say at all that the MCDC would carry the loan if the TIFIA loan did not come through. They actually presented other scenarios if that did not happen which is very doubtful."
ReplyDeletePer the city employee I emailed:
"The plan today if TIFIA is unavailable, as stated at the CDC meeting, is to refinance the short-term bridge loan into a more commonly used 30-year note, providing level debt service. The PFC funds would be used to pay debt service with TIFIA or with a 30-year sales tax revenue bond."
I have been trying to pay attention to the candidates for the upcoming Mayoral election. Have any of the candidates voice an opinion on the airport issue? Thank you
ReplyDeleteThe usual suspects support Bill Cox.
Delete