Title
Consider/Discuss/Act on a Chapter 380 Economic Development Program and Loan Agreement between the City of McKinney and Texas Global Aeroplex LLC
Summary
MEETING DATE: April 3, 2012
DEPARTMENT: Finance
CONTACT: Rodney Rhoades, Finance Director
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Development Program and Loan Agreement
ITEM SUMMARY:
• The primary purpose of the proposed agreement with Texas Global Aeroplex LLC (TGA) is for the relocation of its operations to the Collin County Regional Airport (CCRA) from Birmingham, Michigan.
• The City will conduct an Economic Impact Study (start date to be determined) of the CCRA.
• The loan agreement is in effect until April 1, 2013.
BACKGROUND INFORMATION:
• The City has the authority under Chapter 380 of the Texas Local Government Code to make loans or grants of public funds for the purposes of promoting state or local economic development by stimulating business and commercial activity.
FINANCIAL SUMMARY:
• The promissory note principal sum is thirty-nine thousand dollars ($39,000).
• The City of McKinney shall fund up to twenty-five thousand ($25,000).
• TGA agrees to pay the City its actual costs, up to fourteen thousand ($14,000) towards the Economic Impact Study.
BOARD OR COMMISSION RECOMMENDATION: N/A