Title
Conduct a Public Hearing to Consider/Discuss/Act on a Request by the City of McKinney for TIRZ Funding for the Proposed McKinney National Airport Project AI2265, East Side Programming Documents, and Accompanying Resolution
Summary
COUNCIL GOAL: Maximize the Development of McKinney National Airport
(3A: Implement initiatives and strategies, including public-private partnerships, to attract and expand corporate and commercial aviation including the viability of passenger service
(3B: Identify and implement land use regulations and policies that preserve and expand long-term operational excellence)
MEETING DATE: January 4, 2022
DEPARTMENT: Airport
CONTACT: Kenneth Carley, A.A.E., Airport Director
RECOMMENDED ACTION:
• Staff recommends approval of the proposed request.
ITEM SUMMARY:
• The City is requesting $2,000,000 in TIRZ funds for the McKinney National Airport Project AI2265, East Side Programming Documents.
• Companion agenda items are on the January 4, 2022 City Council agenda to amend the Capital Improvements Projects budget to transfer funds to the Project and to approve the contract for the Programming Documents.
BACKGROUND INFORMATION:
• In accordance with the Tax Increment financing Act (Texas Tax Code Chapter 311), Reinvestment Zone Number Two, McKinney Texas (TIRZ No. 2) was established by Ordinance 2010-09-035 of the McKinney City Council on September 21, 2010.
• TIRZ No. 2 consists of approximately 3,617 acres generally on and around the McKinney National Airport, from US 380 to the southeastern city limits of McKinney.
• TIRZ has the authority under Section 311 and Chapter 380 of the Texas Local Government Code to make loans or grants of TIRZ funds for the purposes of promoting local economic development and stimulating businesses and commercial activity within the TIRZ.
• The City of McKinney TIRZ No. 2 is intended to support ongoing investment and development of the McKinney National Airport with the following mission statement:
o Mission Statement: Develop the premier general aviation reliever airport in the D/FW Metroplex with future commercial service goals.
o The purpose of TIRZ No. 2, also known as the Airport TIRZ, is to provide the infrastructure support necessary to fulfill the aforesaid mission of the airport.
o Specific costs associated with proposed Project shall be eligible for funding from TIRZ No. 2, subject to review and approval by the TIRZ Board.
o The proposed Project scope of work will include identifying:
§ the appropriate site layout of various facilities necessary to enable the development of the east side of the airport
§ the physical planning requirements that will determine the necessary size of facilities
§ the customer experience amenities
§ the total square footage of proposed buildings, and
§ the associated aircraft apron, as well as the proposed cost of needed facilities.
FINANCIAL SUMMARY:
• The City is requesting $2,000,000 in TIRZ funds for the McKinney National Airport Project AI2265, East Side Programming Documents. These funds will be matched with $1,500,000 from the Airport’s fund balance for a total Project cost of $3,500,000. These combined funds will cover the above-referenced project costs.
• TIRZ #1 Fund Balance
o The TIRZ #2 Fund currently has a balance of $4,700,000.
o If the request is approved, the TIRZ #2 Fund will have an estimated $4,400,000 at year-end.