McKinney boards, council approve $30 million CDC grant and authorize sales-tax bonds to fund Eastside Airport work

McKINNEY, Texas — The McKinney Community Development Corporation (CDC) and McKinney Economic Development Corporation (EDC) on March 18 approved measures to fund Eastside Airport infrastructure and a small passenger terminal, and the McKinney City Council authorized the related sales-tax bond resolutions.

The CDC voted to approve a $30,000,000 project grant application to finance Eastside Airport infrastructure and terminal elements, and the EDC approved a sales-tax revenue bond authorization that includes $22,400,000 designated for the airport project. City staff and municipal advisors said the CDC and EDC bonds are intended as interim financing until a long-term TIFIA loan from the U.S. Department of Transportation can replace the interim debt at a substantially lower interest rate.

City Chief Financial Officer Mark Holloway (chief financial officer) and Dave Gordon (senior managing director, Estrada Hinojosa) described transaction structure and next steps. Gordon said the CDC financing will be arranged as a private placement and that Truist Bank submitted the winning proposal; the CDC notes are interest-only for the near term and callable to allow refinancing with the federally backed TIFIA loan. Gordon gave a pro forma interest rate for the private placement and described a roughly 4.27% rate for that instrument.

Barry (staff member) described project phasing and revenue assumptions. Staff explained the Eastside work…