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McKinney Airport Bond Refinancing Faces Legal and AG Scrutiny

A lawsuit and attorney general filing challenge the legality of $30 million in sales tax bonds used to fund the McKinney airport expansion as commercial flights approach.

Demarcus Ramos

July 2, 20262 min read

Airport finances legal - illustration, Jake Team LLC
Airport finances legal - illustration, Jake Team LLC

A legal challenge regarding millions of taxpayer dollars supporting the McKinney airport expansion has drawn scrutiny from the state attorney general, even as an airline prepares to launch commercial flights in the fall. The North Texas Conservation Association, a group comprising McKinney residents and neighbors, filed a lawsuit in March contesting the legality of the city’s debt repayment methods for the project, which includes a new commercial passenger terminal. The attorney general also submitted a filing questioning the city’s funding process.

McKinney is located approximately 11 miles south of Anna. The litigation highlights persistent local disagreement over the airport’s development and the city’s decision to proceed despite previous voter rejections. In 2015, voters rejected a $50 million bond for airport improvements. In 2023, they again rejected a $200 million property-tax-backed bond for similar projects, including the commercial terminal building. Some residents and neighbors have expressed concerns about potential noise, traffic, and growth impacts on the suburban Collin County area, while supporters argue the city can benefit from becoming home to North Texas’ third commercial airport.

Following the ballot box failures, the city utilized alternative funding sources, including state and city funds, as well as sales tax revenue bonds issued by the McKinney Economic Development Corporation and community development corporations. The current dispute centers on $30 million in bond funding, backed by sales tax revenue and issued last year by the McKinney Community Development Corporation. The attorney general had previously approved these bonds.

The city is utilizing a federal program from the U.S. Department of Transportation to refinance the $30 million debt. City officials state this move will result in significant savings for taxpayers by replacing higher-interest debt with lower-interest terms and extending the repayment timeline. Council member Patrick Cloutier noted on social media that the council voted to refinance the debt upon becoming eligible earlier this year, estimating it would save the McKinney Community Development Corporation millions. The city confirmed the money has already been spent on construction.

The North Texas Conservation Association’s lawsuit asserts that the city council ignored the expressed will of voters. City officials counter that previous elections concerned the method of payment rather than the decision to fund the expansion. While the litigation is not expected to halt construction or delay Avelo Airlines’ planned routes, it may impact how the debt is repaid. City Manager Paul Grimes stated that construction is ongoing and will not stop due to the legal challenges.

Source: yahoo.com.

Sources

https://www.yahoo.com/news/us/articles/mckinney-airport-funding-faces-legal-182045473.html

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Demarcus Ramos

Demarcus Ramos writes about community life, schools, public safety, and local events in Anna.

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