McKinney | January 2023

TOP STORY

The proposed terminal would be located on land east of McKinney National Airport’s existing xed-based operations terminal and air control tower. The land was purchased by the city in 2018 in anticipation of expanding the airport. PREPARING FOR TAKEOFF

the proposed proposition will be dif- ferent from 2015. During that election there were seven bond proposals total- ing $160.3 million, said Loughmiller, who was also the city’s mayor during that period. Five of the seven propos- als passed, with the exceptions being the airport improvements and $10 mil- lion for downtown parking. He said the proposition for the airport failed because it was not specic enough. “We didn’t identify specic proj- ects like we did with some of the road projects that we identied and other things that did pass,” he said. “In the past there wasn’t a lot of promo- tion for what the airport could be. … There’s got to be an education to the public as to why this [current bond proposal] makes sense.” This proposed proposition is more specic and tied to the single project, Loughmiller said. The city began looking into the project after receiving unsolicited interest from commercial airlines to add passenger service at the airport in 2019, Shelton said. The city then hired consultants to look into demand and airline interest to see whether it is a viable option. Since then, the city has discussed the potential of commercial passenger service with various airlines. “We’re talking about the whole range [of carriers], so we’re not limiting our- selves. Of course, we would like to have a mix so that we have something for all The project is eligible for “consid- erable” grant funding through the Federal Aviation Administration, McK- inney National Airport Director Ken Carley said at a committee meeting. Projections presented in the bond committee meetings by Adam Giombetti, a consultant from WJ Advi- sors hired by the city to provide insight into aviation project nancing, noted that, assuming a 5% interest rate and a 30-year repayment term, the project would likely break even in 2048 and become self-sustaining after that. Estimates included in an economic impact study completed by Intervistas Consulting Inc. indicated the output for the rst year of operations once the terminal opens could range between $600 million-$850 million, with the former gure representing a conserva- tive estimate, Shelton said. “We have a very successful airport today, so I think we’ve been able to passengers,” Shelton said. Funding airport expansions

380

AIRPORT DR.

MCKINNEY AIRPORT

KEY

INDUSTRIAL BLVD.

3 Proposed new terminal with additional parking Customs facility to process international ights and passengers Cirrus aircraft maintenance and repair facility New taxilane Runway extensions Drainage and taxiway improvements Fixed base operator terminal Taxilane rehabilitation and relocation INDUSTRIAL BLVD.

New terminal

North covered parking

Gates

The Texas Department of Transportation has selected a route east of the airport as its preferred option for the Spur 399 extension project. New road SPURRING DEVELOPMENT FUELING UP LOCAL ECONOMIES The proposed new terminal would facilitate additional economic impact for the area, both directly and indirectly. The creation of new jobs, increased revenue to the airport and additional tax revenue to the city are all expected, according to an economic impact study. 9

South uncovered parking

546

Potential annual economic impact (conservative estimates)

tax revenue beneting state, local and federal government

new jobs

wages and benets

$600M+ $840M+ economic output

$3M+ $4M+ McKinney tax revenue

2,700+ 3,800+

$200M+ $280M+

$75M+ $105M+

2026

2040

SOURCE: CITY OF MCKINNEYCOMMUNITY IMPACT RENDERING COURTESY GOOGLE EARTH

been undergoing various expansion projects for some time, and it contin- ues to operate at 100% occupancy, all while operating on its own revenues. Commercial service has been in the airport’s master plan since 2012, Shel- ton said. After voters turned down a $50 million bond proposition to fund the airport in 2015, city ocials found other ways to expand, including using property tax and sales tax dollars, gen- erating revenue from fuel sales, and leasing hangar and oce spaces. Brian Loughmiller, McKinney Eco- nomic Development Corp. board chair, serves on the executive committee for the airport bond committee and said

amenities, such as play areas for chil- dren near gates, according to the presentation. Curating a convenient experience was a goal of the design team, which included members of both City Council and city sta, Assis- tant City Manager Barry Shelton said. The initial four-gate terminal could see between four and 20 commercial ight departures per day, according to initial demand forecasts. If approved, the project could begin the three years of construction needed in 2023. McKinney National Airport provides general aviation services, such as pri- vate business ights, ight training and medical transport. The airport has

CONTINUED FROM 1

sources to bridge the gap. The proj- ect, if approved by voters, could be operational as soon as spring 2026. Adding commercial passenger service McKinney leaders presented plans for a proposed terminal that would bring in commercial airlines for pas- senger services at the committee’s rst meeting on Oct. 12. The proposed terminal would be 144,000 square feet and include four gates with room to grow to 16 gates and 2,000 parking spaces as well as include dining, retail and enhanced passenger

COMMUNITYIMPACT.COM