Title
Consider/Discuss/Act on a Lease Agreement Between the City of McKinney and the United States General Services Administration (GSA), on Behalf of the Transportation Security Administration (TSA), for Administrative and Screening-Support Space at McKinney National Airport
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: September 15, 2026
DEPARTMENT: Airport
CONTACT: Kenneth Carley, A.A.E., Airport Director
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends City Council approve this resolution.
ITEM SUMMARY:
The Airport is developing a new commercial passenger terminal to support its transition to scheduled commercial air service. As part of that effort, staff have negotiated a proposed lease agreement with GSA, on behalf of TSA, for administrative and screening-support space within the new terminal. Key terms include:
• Leased Space: 1,452.52 rentable square feet of TSA administrative space within the new commercial passenger terminal.
• Lease Rate: $63.36 per rentable square foot, full service, comprised of:
o Shell Rent: $47.75 per square foot.
o Operating Rent: $15.60 per square foot, covering janitorial services and utilities allocated across the rentable terminal space.
• Estimated Annual Rent: approximately $92,032 (1,452.52 SF x $63.36/SF), payable to the City under standard GSA lease terms.
BACKGROUND INFORMATION:
• The Airport is constructing a new commercial passenger terminal to support scheduled air carrier service at McKinney National Airport.
• TSA requires dedicated administrative and screening-support space within the terminal to provide security screening services once commercial passenger operations begin.
• City and Airport staff worked with GSA to develop the proposed rate methodology to reflect costs specific to the Airport terminal, resulting in the current proposed full-service rate of $63.36 per square foot.
• The revised rate does not include any airfield, roadway, or parking-related capital costs, nor does it include terminal-wide operating expenses unrelated to the TSA space.
FINANCIAL SUMMARY:
• The lease is estimated to generate annual revenue of approximately $92,032 to the Airport, based on the negotiated rate of $63.36 per square foot applied to 1,452.52 square feet of leased space.
• Revenue from the TSA lease will help offset debt service and operating costs associated with the new commercial passenger terminal.
BOARD OR COMMISSION RECOMMENDATION:
• N/A