Title
Consider/Discuss/Act on a Resolution Authorizing the Issuance of “McKinney Community Development Corporation Sales Tax Revenue Refunding Bonds, Taxable Series 2026 (TIFIA)”; Pledging Certain “Pledged Revenues” of the Corporation, Including “Gross Sales Tax Revenues”, to the Payment of the Principal of and Interest on the Bonds; Enacting Other Provisions Incident and Related to the Issuance, Payment, Security and Delivery of the Bonds, Including the Approval of a Paying Agent/Registrar Agreement; and a TIFIA Loan Agreement; Resolving Other Matters Incident and Related to the Issuance and Sale of the Bonds; and Providing an Effective Date.
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements.
MEETING DATE: August 27, 2026
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible, President
ITEM SUMMARY:
• The Resolution reauthorizes the issuance of up to $30 million in McKinney Community Development Corporation Sales Tax Revenue Refunding Bonds, Taxable Series 2026 (TIFIA), to be delivered to the TIFIA Lender under a TIFIA Loan Agreement. The proceeds will be used to refund the McKinney Community Development Corporation Sales Tax Revenue Bonds, Taxable Series 2025 (the "Series 2025 Bonds"), in the amount of $30.170 million, originally issued to finance improvements to the McKinney National Airport including construction of passenger terminal facilities.
• The Resolution approves the revised form of TIFIA Loan Agreement, substantially in the form attached as Exhibit B to the Resolution, with such modifications thereto as the Pricing Officer shall approve.
• Additionally, approval of this Resolution will authorize the Chair, Vice Chair, or President of the Corporation as Pricing Officers to finalize the terms of the Bonds and execute any and all documents needed to effect the transaction.
BACKGROUND INFORMATION:
• A resolution authorizing the McKinney Community Development Corporation to proceed with the TIFIA financing was approved by both MCDC and McKinney City Council at a Joint Meeting held March 3, 2026, and was numbered Resolution No. 2026-03-001 (MCDC).
• The document presented for the August 27 meeting is a new resolution that will supersede the prior authorization.
• The Bonds will be used to refund the outstanding Series 2025 Bonds, which financed improvements to the McKinney National Airport including passenger terminal facilities, other airport facilities, streets and roads, taxiways, aprons, and other infrastructure, in conformity with the Constitution and laws of the State of Texas.
• McKinney Community Development Corporation will fund any remaining balance needed to fully refund the Series 2025 Bonds from lawfully available Corporation funds.
• McKinney Community Development Corporation’s bond rating is AA.
FINANCIAL SUMMARY:
• The Loan amount is $30,000,000.
• Per the TIFIA Loan Agreement, the TIFIA Interest Rate will be set at closing and will be based on the formula (SLGS rate + 1 basis point) / 2, rounded up. The exact rate is currently shown as a placeholder and will be finalized within five days of closing.
• The final maturity date for the Bonds shall not be later than February 15, 2056, and the true interest cost shall not exceed 5%. The Pricing Officer's delegation expires if not exercised within 180 days of adoption of the Resolution.
BOARD OR COMMISSION RECOMMENDATION: N/A