McKinney City Council members unanimously approved three bond sales to fund the projects at a Nov. 7 meeting.
The details
The approved bond sales include:
- $30.5 million for renovations to McKinney Soccer Complex at Craig Ranch
- $15 million for renovations at Old Settlers Recreation Center
Diving deeper
Projects planned for McKinney National Airport include a 40,000-square-foot corporate hangar and a U.S. Customs facility, McKinney National Airport Director Ken Carley said.
The corporate hangars at the airport are the largest revenue generators for the airport, Carley said. They also see high demand, with the last completed hangar reaching full occupancy in 45 days, he said.
City Council members approved selling $24.5 million in certificates of obligation for the projects. City staff choose to sell the debt as certificates of obligation because it would have the lowest cost to the city, he said.
Two McKinney residents spoke against the authorization of debt for the airport projects at the meeting, noting concerns about the potential for McKinney residents to be tasked with the cost of the debt.
Holloway noted that the projects are intended to be repaid solely with revenues generated from the airport despite the type of debt issuance being considered.
“While it’s not a traditional revenue bond, the revenues of the airport that are generated from the corporate hangar will be used to settle the debt on the customs facility and the hangar,” Holloway said at the meeting.
Also of note
The Tax Increment Reinvestment Zone Number Two board unanimously approved a roughly $2.8 million funding request for additional projects at the airport at a Nov. 7 meeting.
The funding will be used to build three additional hangars on about 10 acres of land. The facilities and aircraft that will be housed there are expected to result in over $200 million in taxable assets, according to city documents.
The project will also generate over $180,000 in annual land rent and $350,000 in annual revenue from fuel sales and other aeronautical services, according to a presentation at the meeting.
Also on the agenda
Other items on the agenda included:
- An update on impacts to Erwin Park due to neighboring development. A trail disconnected due to construction on an adjacent property has been permanently rerouted within Erwin Park property.
- Council approved requests from city staff to authorize the use of eminent domain for five properties affected by the SH 5 utilities relocation project. Council members approved the use of eminent domain if needed for four affected properties at an Oct. 17 meeting.