McKinney CDC authorizes $30 million TIFIA-backed bond to finance new airport terminal

The McKinney Community Development Corporation (CDC) voted unanimously to authorize sales tax revenue refunding bonds, taxable series 2026, as part of a plan to secure a $30,000,000 Transportation Infrastructure Finance and Innovation Act (TIFIA) loan to fund a new commercial passenger terminal at McKinney National Airport.

Dave Gordon, the city's financial advisor, said the transaction would replace interim financing and is structured as a taxable sales-tax-backed obligation. "The loan is fixed at $30,000,000," Gordon said during the financial presentation. He outlined an illustrative debt-service profile and said the transaction includes a reserve fund and estimated cost of issuance.

Gordon described a reserve-fund deposit in the illustration of about $1,500,000 and used a plug number of $350,000 for cost of issuance. He explained the existing interim loan balance the transaction will retire is slightly larger than $30,000,000 and that a prepayment "make-whole" penalty of about 1.35% is being factored into payoff calculations. The presentation characterized the loan as receiving a rural TIFIA pricing treatment (about 0.5 of the 30-year Treasury in the illustration) and showed long-run comparable public-market rates near 4.70% versus the TIFIA illustration around 2.35%.

Chair moved the CDC resolution, a member seconded, and the board approved the measure on the record. The resolution delegates authority to staff and advisors to finalize the bond sale and related documents and to proceed with closing the TIFIA financing.