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City presents $30 million MCDC request to seed east-side airport terminal; board presses on financing risks
Summary
City staff presented a reduced east-side commercial terminal plan and requested MCDC support via $30 million of sales tax revenue bonds to be refinanced with a federal TIFIA loan. Board members pressed staff on revenue sources, PFCs, risk if TIFIA does not materialize and whether airport revenues could be earmarked for debt service.
City staff outlined a scaled approach to introduce commercial airline service at McKinney National Airport, including taxiway/flatwork, an access roundabout and a compact ground‑loaded commercial terminal. The program cost estimate is roughly $72 million; the city requested MCDC issue $30 million in interim sales‑tax revenue bonds to begin construction, with an intent to refinance with a TIFIA loan (federal Build America Bureau program) when available.
Staff and the financial advisor presented projections that passenger facility charges (PFCs) and airport‑generated revenue could assist debt service as flights ramp up (staff projected first‑year PFCs of roughly $500,000 rising to $1.7–1.9 million by year three under airline forecasts); board members sought clarity on whether PFCs could reimburse interest on the interim bonds, how sales tax revenue from airport merchants would be tracked and whether the CDC would be responsible for the long‑term TIFIA debt service. Board members also discussed potential contingencies tying MCDC funding to a renewed Byron/NTP-style agreements or airline commitments; staff agreed to provide additional detail and to bring financing decisions back for further review. The board left the public hearing open for follow‑up materials and further public comment.
