Title
Consider/Discuss/Act on a Resolution Directing the City Manager to Request Grant Funding from the McKinney Economic Development Corporation and the McKinney Community Development Corporation for Planning and Design of the East Side of McKinney National Airport
Summary
COUNCIL GOAL: Maximize the Development Potential of McKinney National Airport
(3A: Implement initiatives and strategies, including public-private partnerships, to attract and expand corporate and commercial aviation including the viability of passenger service.)
MEETING DATE: February 20, 2024
DEPARTMENT: Airport
CONTACT: Ken Carley, Airport Director
Barry Shelton, City Manager’s Office
RECOMMENDED CITY COUNCIL ACTION: Approve Resolution
ITEM SUMMARY:
• The Resolution directs the City Manager to request grant funding from the McKinney Economic Development Corporation and the McKinney Community Development Corporation for planning and design of the east side of McKinney National Airport.
• The planning and design of the east side of McKinney National Airport will determine what infrastructure and facilities are necessary to develop future general aviation and/or commercial passenger service aeronautical uses.
• Completion of the design will also help estimate costs of the infrastructure and will assist in applications for federal grant money for construction.
BACKGROUND INFORMATION:
• McKinney National Airport opened for service in 1979 and the airport has been owned by the City of McKinney since that time.
• The west side of McKinney National Airport has been developing general aviation aeronautical uses for over 40 years and is approaching buildout of available city-owned properties.
o There are approximately 35 acres of city-owned land available on the west side of the airport for future development.
o Of those 35 acres, approximately 24 acres currently under negotiation, design, or construction, leaving only 11 acres for future airport growth.
• In 2018, the City of McKinney purchased 190 acres on the east side of the airport for future growth of the airport.
• As the west side of the airport builds out, development of the east side becomes more important for the continued growth of the airport.
FINANCIAL SUMMARY:
• In May 2023, the proposed bond referendum language read “Shall the City Council of the City of McKinney, Texas, be authorized to issue general obligation bonds of the City in the principal amount of $200,000,000 for permanent public improvements and public purposes, to-wit: designing, developing, constructing, enlarging, improving and equipping a commercial air service terminal at the City’s airport, including runways, taxiways, hangars and other facilities incident and related to the operation of the commercial air service terminal and acquiring lands, interests in lands, and rights-of-way related thereto…”
• With the failure of the bond election, the City of McKinney is prohibited from using property tax backed debt to finance the improvements proposed in the language of the referendum for a period of three years. As such, the city will not use property tax backed debt to plan and design infrastructure that could be used for the development of a commercial service air terminal during the three-year period.
• The resolution will direct the City Manager to request grant funding for the planning and design services from the McKinney Economic Development Corporation (MEDC) and the McKinney Community Development Corporation (MCDC). Both corporations are funded by sales tax collections.
BOARD OR COMMISSION RECOMMENDATION: N/A