McKinney City Council discussed the delays at a June 18 work session after the terminal was expected to be complete May 31, according to a contract between the developer and the city.
The city entered a public-private partnership with Western LLC to build a fixed-base operator terminal and a new $9 million transient hangar—a project totaling $16 million. The airport’s fixed-base operator, or FBO, provides services at the airport, including fuel and hangar rentals, and buildings located at the airport.
$10 million of the $16 million for the two projects comes from city funding, including $2 million from the McKinney National Airport, $4 million from the McKinney Economic Development Corp. and $4 million from the McKinney Community Development Corp. The other $6 million comes from Western LLC.
The airport will pay Western LLC back for the $6 million contributed to the two projects with funds collected from FBO revenue, including renting out the hangar, Assistant City Manager Jose Madrigal said in a previous article.
Once paid off, the hangar and terminal will belong to the airport.
The 39,900-square-foot hangar was completed on time April 24 and has already brought in at least $112,000 of revenue from gas sales since it opened, said airport director Ken Carley.
However, the terminal is not expected to be complete until late September, according to Western LLC.
As of June 18, the terminal's foundation is still under construction. According to Andrew Hunt, vice president of Project Control, the city's owner representative for the project, about 50% of construction on the building is complete, but most of this has been underground work.
Several unexpected challenges occurred during recent months that caused the setback, including needed drainage improvements and at least 84 days of construction lost due to rain, said Western LLC CEO Brad Henderson.
According to the contract between McKinney and Western LLC, the city may collect $150 a day from Western between June 1 to Jan. 1 until construction is complete.
The city will need to further discuss what caused delays to construction before collecting the daily fee, Mayor George Fuller said in an email.
The city is not facing any loss of revenue or additional cost from the terminal’s delay, McKinney City Manager Paul Grimes said at the meeting.
“At the end of the day it is not hurting us, and we are still able to [capitalize from] the hangar,” Grimes said.
Western LLC expects vertical construction of the terminal to begin July 1 and to be completed by Sept. 28.
Once complete, the terminal will include a flight-planning room, a pilot lounge, an outdoor lounge, a media room, two conference rooms, on-site car rentals, curbside luggage service, package storage and Wi-Fi.
This is the airport’s first public-private partnership. And the city plans to continue pursuing these types of partnerships to develop the airport and other projects throughout the city, Grimes said.
Editor's note: This article has been updated to include more information.