In a nutshell
McKinney City Council members authorized up to $10 million for an interfund loan to the McKinney EDC during a March 25 meeting. The loan will be sourced from the city’s general fund and will be used to purchase land in East McKinney.
Chief Financial Officer Mark Holloway said the action was to authorize up to $10 million but he anticipates only $5 million will be needed for the sale.
MEDC officials intend to purchase 182 acres of land located within the R.H. Locke Survey, Abstract No. 517, according to a loan agreement attached to the agenda. The abstract consists of 3,129 acres located directly east of the McKinney National Airport.
The conditions
The loan will be repaid once funding is received from debt issuance that was recently authorized by the MEDC and City Council. In a March 18 joint meeting, council members and the MEDC Board of Directors approved the sale of about $64 million in sales tax revenue bonds.
Bonds are being issued for two distinct projects, according to the March 18 agenda.
- $22.4 million to fund infrastructure and parking facilities adjacent to the commercial passenger terminal at McKinney National Airport.
- $44 million for acquiring land to promote and develop new business enterprises for creation or retention of primary jobs.
“That leaves about a one-month gap between when the funds are received and when the land purchase will take place,” he said.
The MEDC is expected to pay back a total of $5.01 million, which includes interest, by April 30, according to a staff presentation.
What they’re saying
Mayor George Fuller said most of the property being purchased is located in McKinney’s extraterritorial jurisdiction and will be annexed and zoned for the city. He said the land was important to the city for the airport, regardless of what use the airport has in the future.
“It is in our best interest as a community to protect that property,” he said. “Currently, most of that property is in the ETJ. Of course, it will be brought in and zoned appropriately.”
