File #: 25-2556    Name: MEDC Bond Issuance - City Council Approval
Type: Resolution Status: Agenda Ready
In control: Joint Meeting
On agenda: 3/18/2025 Final action:
Title: Consider/Discuss/Act on All Matters Incident and Related to Approving the Resolution of the McKinney Economic Development Corporation Board Action Authorizing the Issuance of the McKinney Economic Development Corporation Sales Tax Revenue Bonds and the Corporation's Delegation to a Pricing Officer to Carry Out the Procedures of the Resolution and Relating to the Deposit of Sales Tax Revenues for Such Bonds, Including the Adoption of a Resolution Pertaining Thereto
Attachments: 1. Resolution
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
No records to display.

Title

Consider/Discuss/Act on All Matters Incident and Related to Approving the Resolution of the McKinney Economic Development Corporation Board Action Authorizing the Issuance of the McKinney Economic Development Corporation Sales Tax Revenue Bonds and the Corporation’s Delegation to a Pricing Officer to Carry Out the Procedures of the Resolution and Relating to the Deposit of Sales Tax Revenues for Such Bonds, Including the Adoption of a Resolution Pertaining Thereto

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

4A: Provide funding and organizational framework to ensure continual economic improvements

 

MEETING DATE:                     March 18, 2025

 

DEPARTMENT:                      Financial Services

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

                     

RECOMMENDED CITY COUNCIL ACTION:                     

                     Approval of Resolution

 

ITEM SUMMARY: 

                     This Resolution approves the MEDC Board action to issue $43.355 million in taxable sales tax revenue bonds

                     In addition, this Resolution approves the MEDC Board action to issue $21.155 million in non-taxable sales tax revenue bonds

                     The interest rate ranges for the bonds shall not exceed 7.0%.

 

BACKGROUND INFORMATION: 

                     Bonds will be issued for the two (2) distinct projects described below:

o                     $22.4 million to fund the development of transportation facilities, including infrastructure located on or adjacent to an airport facility and parking facilities.

§                     These funds will build qualifying infrastructure and parking facilities adjacent to the commercial passenger terminal at McKinney National Airport.

o                     Approximately $44 million to fund the acquisition of land to promote and develop new and expanded business enterprises for the creation or retention of primary jobs.

 

                     Bonds will be issued in one or more series (i) to acquire land to promote and develop new and expanded business enterprises for the creation or retention of primary jobs, (ii) for the development, retention or expansion of transportation facilities, including related infrastructure located on or adjacent to an airport facility and parking facilities, (iii) to fund any required reserve requirement and (iv) to pay costs of issuance associated with the issuance of the Bonds, in conformity with the Constitution and laws of the State of Texas, including the Act and specifically Section 501.101 of the Act, the Texas Nonprofit Corporation Act, and Chapter 22, Texas Business Organizations Code.

 

                     Applications have been made to Standard and Poor’s (S&P) to review the bond rating.

 

FINANCIAL SUMMARY: 

                     The total amount of bonds shall not exceed the principal amount of $68,000,000.

                     The true interest cost for the Bonds shall not exceed 7.0%.

                     The maximum term for the Bonds shall not exceed 30 years.

 

BOARD OR COMMISSION RECOMMENDATION:

                     MEDC Board Approved March 18, 2025