Title
Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of McKinney Community Development Corporation Sales Tax Revenue Bonds, Taxable Series 2025, Including the Adoption of a Resolution Authorizing the Issuance of Such Bonds, Establishing Parameters for the Sale and Issuance of Such Bonds and Delegating Certain Matters to an Authorized Officer(s) of the Corporation
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements
MEETING DATE: March 18, 2025
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible, President
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution
ITEM SUMMARY:
• This Resolution approves the MCDC Board action to issue approximately $30.17 million in taxable sales tax revenue bonds in a private bank placement through a competitive process.
• The current interest rate for the bonds ranges shall not exceed 4.6%.
• Additionally, approval of this resolution will designate the Chairman or Vice Chairman of the Board of Directors of the Corporation or the President and Chief Executive Officer of the Corporation as Pricing Officers to execute the transaction. This will enable pricing of the bonds at such time as the market conditions are most favorable.
BACKGROUND INFORMATION:
• Bonds will be issued for the purpose of financing improvements to the McKinney National Airport (the “Airport”) including passenger terminal facilities and other airport facilities, streets and roads, taxiways, aprons, and other infrastructure related to the Airport and the acquisition of any land related thereto and to pay the costs of issuance associated with the issuance of the Bonds, in conformity with the Constitution and laws of the State of Texas.
• Applications were made to Standard and Poor’s (S&P) to review the bond rating and the AA rating was affirmed.
FINANCIAL SUMMARY:
• The total not to exceed principal amount for new issue is $30,170,000.
• The true interest cost rate for the Bonds shall not exceed 4.6%
• The maximum term for the Bonds shall not exceed 20 years.
BOARD OR COMMISSION RECOMMENDATION: N/A