Funding measures approved at a March 18 meeting included a $30 million contribution from the McKinney Community Development Corporation and a $22.4 million contribution from the McKinney Economic Development Corporation.
The plan
The 45,000-square-foot passenger service terminal will be added to the east side of McKinney National Airport.
The facility will include three gates with the ability to expand to five gates, a Jan. 8 news release from the city states. It will also include a 1,500-spot parking lot, six aircraft parking positions for both commercial and general aviation uses, an aircraft de-icing facility, above-ground fuel storage tanks and other supportive infrastructure.
Other planned features include:
- A quick-service concessions stand with food and beverage options
- Open hold rooms for passengers
- A rental car lot
- A ride-share drop off location
- Electric vehicle charging spaces
City officials have completed development of design and construction documents, and are working through the construction pricing and contract execution phase for the project, according to a presentation at the meeting. Assistant City Manager Barry Shelton said the city also expects to receive the environment assessment for the project with a finding of no significant impact.
The specifics
The terminal and associated infrastructure is expected to cost $75.1 million, according to the presentation. The costs include:
- $43.6 million for the terminal
- $11.4 million for the roundabout connection at FM 546
- $15.6 million for Taxiway C
- $4.5 million for the aircraft fuel farm
At the meeting, the MCDC board unanimously approved contributing an additional $30 million to the project that will serve as interim financing until city officials can secure funds from the Transportation Infrastructure Finance and Innovation Act program, or a TIFIA loan. The MCDC board approved the issuance and sale of $30 million in sales tax revenue bonds to provide the project funding.
Shelton said TIFIA program officials confirmed that the McKinney airport project qualifies and is likely to receive funding. The loan could be paid back through both operating revenues and passenger facility charges, he said.
The MEDC board also unanimously approved the issuance and sale of $62.4 million in sales tax revenue bonds, with $22.4 million expected to be contributed to the airport project and the remaining $40 million used for a land purchase, according to the presentation. A $2.6 million contribution from the city’s water and wastewater fund will also be used for costs related to the terminal.
For the remaining $14.8 million funding gap, city officials are looking to secure funds from the Federal Aviation Administration and Texas Department of Transportation, and could also potentially utilize funds from the city’s Tax Increment Reinvestment Zone 1, which encompasses the airport.
“We anticipate continuing to go after grants, both this year and in future years, and we’re going to try to maximize the amount of money we bring in from TxDOT or the state, as well as the federal government with the FAA,” Shelton said, noting that any additional grant funding would offset capital costs.
Following the funding measures approved at the meeting, funds are in place for the construction of the terminal and roundabout, Shelton said. The funding gap only affects the construction of Taxiway C and the fuel farm, according to the presentation.
Diving in deeper
Despite approval by both city boards to contribute funding, McKinney City Council members expressed mixed opinions on the funding measures.
In secondary votes needed to approve the issuance of both board’s bond sales, council members voted 4-3 in favor of approval, with council members Justin Beller, Patrick Cloutier and Charlie Philips voting against the items.
Cloutier said his vote was due to the lack of funding support from regional entities, saying that the airport would provide a benefit to the region, not just the city.
“What I want is the other cities in Collin County screaming in concert with this city to get some help to get this done,” Cloutier said. “I’m looking for a partner that is not the taxpayer of the city of McKinney, a non-McKinney partner coming in here, and I’m willing to wait it out.”
McKinney Mayor George Fuller said he does not expect other local entities to invest in the project, and that he remains eager to move forward with the project, citing capacity challenges at other airports in the region.
“I believe firmly the time is now. The airlines that were discussing now believe the time is now,” Fuller said, noting that the city is in talks with three airlines.
Council member Justin Beller said that the cost breakdowns don’t reflect increased costs related to the hiring and training of additional police and fire staff to serve the airport.
“We’ve got operating expenses that aren’t included on here,” Beller said.
Shelton said the airport’s future revenue is expected to cover the cost of emergency services at the airport, which he said could range from $2 million-$4 million annually.
“Ultimately, the goal is for the airport revenues to fully fund the services at the airport,” Shelton said.
The context
McKinney National Airport was established in 1971 as a general aviation airport, and the airport fixed based operator was acquired by the city in 2013. City officials also purchased the 190-acre site on the east side of the runway in 2018 with the goal of continuing to develop the airport, city documents state.
The project update comes less than two years after McKinney residents voted against a $200 million bond proposition that would have contributed funding to the project.
The bond proposition was presented to voters to fund a roughly $300 million version of the commercial passenger terminal during the May 2023 election. Nearly 59% of voters opposed the proposition, which ultimately failed.
City Council members directed the city manager to pursue grant funding from the McKinney Community Development Corporation and the McKinney Economic Development Corporation for planning and design of the infrastructure on the east side of the airport in February. The organizations contributed a total of $5.5 million following board approvals at meetings held in spring 2024. The downsized project received site plan approval in January, and a pre-construction manager was selected in February.
What else?
The project is expected to create 360 jobs through direct, indirect and induced means in the first year of operations, with an expected 411% increase to 1,840 jobs by the third year of operations.
Quote of note
"We are delighted with the votes today to approve issuing funding to construct needed infrastructure that will unlock the east side of the airport for all aeronautical use development and a terminal building for McKinney National Airport. The funding is key to advancing the project, along with federal low-interest transportation and infrastructure loans, and federal and state grants," Fuller said in a March 18 news release from the city. "These funds mark an important step as we continue to work toward offering convenient and affordable airline service and important economic benefits for residents and businesses in McKinney, Collin County, and North Texas."
Looking ahead
Work on the airport expansion is set to begin in May, and is expected to be completed by July 2026, according to city documents. Commercial passenger service is expected to begin in late 2026, the release states.
Announcements of any airlines coming to the terminal, as well as routes and airfares, would likely be announced about six months prior to the opening of the terminal, McKinney National Airport Director Ken Carley told Community Impact.
For more information on McKinney National Airport, visit www.flytki.com.
