McKinney approves $30M sales tax bonds for airport project funding

McKinney's City Council and Economic Development Corporation (EDC) took significant steps towards advancing local infrastructure and economic growth during their joint meeting on March 18, 2025. The council approved a substantial funding request of $30 million in sales tax revenue bonds from the McKinney Community Development Corporation (CDC) to support interim financing for ongoing airport projects. This funding is crucial as it will bridge the gap until a TIFIA loan from the Build America Bureau is secured, which promises to offer lower interest rates and significant cost savings.

In addition, the EDC approved $22.4 million in sales tax revenue bonds for the same airport project, which is expected to generate an impressive economic output of $122 million during its construction phase. This initiative is projected to create up to 610 jobs, providing a much-needed boost to the local economy.

The economic impact study presented during the meeting highlighted the anticipated growth of the airport's operations. By the third year, the project is expected to generate an annual economic impact of $394 million, with local tax revenue collections projected to reach $10.4 million. This revenue will be shared among various taxing entities, including the city, school district, community college, and county.

While the initial years may see operating losses, the airport's revenues are expected to stabilize and eventually cover operational costs, including public safety expenses. The city plans to hire additional police and fire personnel to support the airport, with costs being shared between the airport's operating budget and the general fund.

Overall, these developments signal a robust commitment to enhancing McKinney's infrastructure and economic landscape, setting the stage for future growth and community benefits. The council's proactive approach in securing funding and planning for operational needs reflects a strategic vision for the city's development in the coming years.