McKinney TIRZ No. 2 board approves $8 million for east-side airport infrastructure

The Tax Increment Reinvestment Zone No. 2 (TIRZ No. 2) board voted 7–1 to approve an $8,000,000 transfer from the zone's fund balance to support enabling infrastructure on the east side of McKinney National Airport.

Very Shelton, assistant city manager for the City of McKinney, presented the proposal during a public hearing, telling the board the request comes from the TIRZ fund balance and that TIRZ No. 2 is expected to hold about $12,000,000 at the end of the fiscal year, with roughly $3,000,000 accruing annually. "The request from the TIRZ board tonight is for $8,000,000 that would come from the fund balance," Shelton said.

Shelton told the board the funding would pay for what the city described as "enabling infrastructure" on the airport's east side: water and sanitary sewer lines, fiber, underground franchise utilities, driveways, parking, taxi lanes and aircraft parking positions, a fuel farm, employee and rental-car lots and a terminal building footprint. He said the city will be asking the City Council to approve a construction manager-at-risk contract with Swinnerton on the council agenda.

Board members asked whether the area in question sits inside TIRZ No. 2 and whether the listed utilities are necessary to spur general aviation development. Shelton said the site and the needed utilities are inside the TIRZ boundary and that the water, sewer and fiber are required to enable development on the east side whether the airport adds commercial passenger service or continues as a general-aviation facility.

Shelton noted the city and the TIRZ have previously invested in the airport, saying the TIRZ partially funded acquisition of the east-side property in 2018. He and other presenters — Mitchell McNally (project side), Ken Carly (airport director) and Mark Holloway (city chief financial officer) — described the project as a first step enabling additional aeronautical and adjacent non-aeronautical development.

Shelton estimated the airport currently produces about $339,000,000 in annual economic impact and said that, by the third year after this project is operational, the annual regional economic impact is anticipated to be just below $400,000,000. He also cautioned that much future east-side growth could occur on property outside the TIRZ boundary and therefore generate tax revenues for the city's general fund and other taxing entities rather than exclusively for the TIRZ.

During questions, a board member asked how much incremental tax revenue the TIRZ would directly receive from the $8 million infrastructure spend. Shelton said many of the immediate airport site features are on city-owned property and are not themselves taxable, but that development of adjacent parcels and aeronautical-related uses within the district could produce incremental tax revenue for the TIRZ in the longer term.

Mayor Fuller moved to approve the TIRZ funding request; Kim McCall seconded. The public hearing produced no speakers. The motion passed on a 7–1 vote.

Earlier on the agenda the board approved amended minutes for the March 31, 2025 TIRZ No. 2 meeting after a brief correction to date references in the minutes. That motion was made and passed; the transcript records the subsequent passage as "7 0 or 8 0". The board adjourned after approving the airport funding request.