Title
Consider/Discuss/Act on All Matters Incident and Related to the Issuance of McKinney Economic Development Corporation Sales Tax Revenue Bonds, 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 Economic Development Corporation
CONTACT: Michael Kowski, President
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%.
• 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 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:
N/A