Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Rental Car Concession Agreement with Enterprise Holdings, LLC dba Enterprise Mobility for the McKinney National Airport (TKI) Commercial Terminal
Summary
COUNCIL GOAL: Maximize the Development Potential of McKinney National Airport
3.1: Implement initiatives and strategies, including public-private partnerships, to attract and expand corporate and commercial aviation including the viability of passenger service.
MEETING DATE: October 5, 2026
DEPARTMENT: Airport
CONTACT: Kenneth Carley, A.A.E. - Airport Director
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends that City Council approve this agenda item.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute a Rental Car Concession Agreement with Enterprise Holdings, LLC dba Enterprise Mobility for on-airport rental car services at the McKinney National Airport Commercial Terminal. This is a revenue-generating agreement under which the City will receive a concession fee based on gross receipts, as well as separate rent for terminal space.
BACKGROUND INFORMATION:
• The scope of the agreement is to provide on-airport rental car services for passengers of the new McKinney National Airport commercial terminal.
• The City of McKinney currently is under contract with Enterprise Mobility at the McKinney Air Center FBO.
• The agreement is designed to support initial operations at the new terminal, with an initial term of two (2) years and two (2) one-year renewal options. The principal terms are as follows:
o Concession Fee: 10% of gross receipts, paid monthly.
o Minimum Annual Guarantee (MAG): There is no MAG in Year 1. Beginning in Year 2, Enterprise will pay the greater of the 10% concession fee or the MAG, with the initial MAG set at 85% of Year 1 concession fees.
o Premises Rent: Enterprise will pay separate rent for terminal space at $204.73 per sq. ft., with the final square footage to be finalized before project completion.
o Parking: 24 exclusive spaces, plus access to additional non-exclusive spaces, providing flexibility to expand rental car offerings at the airport as demand grows.
o Customer Facility Charge (CFC): The City retains the ability to establish a per-transaction-day CFC.
o Security: Enterprise must maintain security equal to three months of MAG plus three months of Premises Rent.
FINANCIAL SUMMARY:
• This is a revenue-generating agreement. No City funds will be expended under this agreement.
• The City will receive a concession fee of 10% of gross receipts, paid monthly, as well as separate rent for terminal counter space.
• Projected Year 1 concession fees are $300,000. Beginning in Year 2, the initial MAG will be set at 85% of Year 1 concession fees.
BOARD OR COMMISSION RECOMMENDATION:
• N/A