McKinney gives quarterly update on airport eastside terminal; staff says commercial service still on track for Nov. 2026

City staff provided a construction and funding update Tuesday on the McKinney Airport eastside terminal and associated infrastructure, reporting steady progress on site grading, utilities and terminal foundations and saying commercial passenger service remains on track for November 2026.

The presentation, delivered by Shelton (filling in for the absent project lead), included aerial photos of the site, renderings of the planned terminal interior and exterior, and a timeline showing the building will go vertical in December and that roundabout access at FM 546 and Taxiway Charlie will be bid in September with construction beginning in January 2026.

Why it matters: staff said the terminal project, roundabout and taxiway work are fully funded with local and state sources at present and that the city is pursuing additional federal competitive grants for air-service marketing. The project’s financing includes a pending TIFIA loan application that would replace sales-tax revenue bonds at a lower interest rate; staff reported the project passed the TIFIA project review and is in the credit-review phase with a closing planned in the first quarter of next year.

FAA inspection and certification

Shelton said FAA inspectors conducted a day inspection and a subsequent night inspection focused on airfield lighting and signage required for Part 139 certification (the federal standard for airports with commercial service). He described the FAA feedback as “relatively minor” punch‑list items that staff expect to address quickly.

Construction status and schedule

Staff showed recent aerials indicating the stormwater detention pond and mass grading are complete, the parking-lot islands and drives are being formed and select fill (approximately 10 feet in places) has been placed beneath the terminal pad to address expansive clay soils. The airport apron and the footprint for six aircraft parking positions and the terminal pad are in place.

Key schedule and procurement points

- Building permit/vertical construction: staff expects framing and visible structure work to begin in December 2025. - Roundabout and Taxiway Charlie: these elements are not part of the current site package; they will be bid in September 2025 with construction anticipated to start January 2026. - Commercial service target: staff reiterated a target to begin commercial passenger operations in November 2026.

Funding and grant efforts

Shelton said the terminal and current site work are funded without federal grant dollars but the city is pursuing federal discretionary programs for market support. Staff highlighted the Small Community Air Service Development (SCASD) grant program as a potential source for marketing dollars to support route launches and said the federal Airport Improvement Program (AIP) and the IIJA funding track remain relevant for future capital phases.

The TIFIA loan application is in its credit-review phase following successful project review; Shelton said the city expects to close the loan in Q1 2026. Staff also noted procurement and concession planning is underway for parking, rental cars, food and beverage and other terminal services, and that conversations with airlines remain under non-disclosure agreements.

Operations and future planning

City staff said FY 2026 budget planning includes hiring airport operations staff and training them ahead of service launch; TSA equipment and IT requirements are a current coordination focus because federal requirements call for dedicated networks and camera access for security screening. Shelton said the city is also seeking to put future projects on the FAA’s five‑year Capital Improvement Plan to compete for future AIP funding if subsequent phases are needed.

Ending

No formal council action was taken. Staff said they will return with regular quarterly updates and will bring policy decisions about airport management (single management company vs. multiple concession vendors) to the council for direction.