Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas, Tax and Limited Pledge Airport Revenue Certificates of Obligation, Taxable Series 2023”, Including the Adoption of an Ordinance Authorizing the Issuance of Such Certificates of Obligation, Establishing Parameters for the Sale and Issuance of Such Certificates of Obligation

[Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas, Tax and Limited Pledge Airport Revenue Certificates of Obligation, Taxable Series 2023”, Including the Adoption of an Ordinance Authorizing the Issuance of Such Certificates of Obligation, Establishing Parameters for the Sale and Issuance of Such Certificates of Obligation]

AGENDA CONSISTS OF ITEMS REQUIRING INDIVIDUAL CONSIDERATION BY THE COUNCIL.

FIRST ITEM IS 23091 TO CONSIDER AND ACT ALL MATTERS INCIDENT RELATED TO THE ISSUANCE AND SALE OF CITY MCKINNEY, TEXAS TAX AND LIMITED PLEDGE AIRPORT REVENUE CERTIFICATES OF OBLIGATION TAXABLE SERIES 2023, INCLUDING THE ADOPTION ORDINANCE, AUTHORIZING THE ISSUANCE OF SUCH CERTIFICATES OF OBLIGATION, ESTABLISHING PARAMETERS FOR THE SALE AND ISSUANCE OF SUCH CERTIFICATES OF OBLIGATION. MR HOLLOWAY, HOW ARE YOU, SIR? DOING WELL. GOOD EVENING, MAYOR AND COUNCIL MARK HOLLOWAY, CHIEF FINANCIAL OFFICER FOR THE CITY. THE FIRST THREE ITEMS TONIGHT UM ARE FOR A FULL BOND SALE COUNCIL WOULD BE PASSING A PARAMETERS ORDINANCE ON EACH OF THE THREE ITEMS WHERE YOU WOULD DESIGNATE THE CITY MANAGER, THE CHIEF FINANCIAL OFFICER AND THE DIRECTOR OF FINANCE HAS PRICING OFFICERS TO EXECUTE TRANSACTIONS FOR ISSUING DEBT. UM WE HAVE

[00:35:06]

THREE DISTINCT TRANSACTIONS. THE FIRST IS THIS FIRST ITEM. IT IS A $24.5 MILLION TAXABLE CEO FOR THE AIRPORT FOR THE PURPOSE OF BUILDING CORPORATE CORPORATE HANGER AND A CUSTOMS FACILITY.

THE NOTES ARE TO BE REPAID WITH AIRPORT REVENUES. WHILE IT'S NOT A TRADITIONAL REVENUE BOND THE REVENUES OF THE AIRPORT THAT WERE GENERATED FROM THE CORPORATE HANGAR WILL BE USED TO SETTLE THE DEBT ON THE CUSTOMS FACILITY IN THE HAIR. UM I DON'T KNOW IF YOU WANT ME TO TALK ABOUT THE OTHER TUITION ISSUANCES AS WELL RIGHT NOW OR OR YOU WANT TO, I WOULD, BUT I WOULD LIKE TO MAKE A QUICK STATEMENT, CLARIFY FOR SOMEONE MIGHT BE WONDERING BECAUSE THE COMMENT WAS MADE THAT TAXPAYERS WILL BE PAYING AND CERTAINLY BY A CERTIFICATE OF OBLIGATION BONDS VERSUS A REVENUE BONDS SPECIFIC TO THE AIRPORT IF THE AIRPORT WERE NOT ABLE TO PAY IT.

THEN THEN, SURELY THEY WILL BE PAID BY TAXPAYERS OUTSIDE THOSE REVENUES COLLECTED SO MERIT TO THE STATEMENT FOR SURE DON'T WANT TO DISCOUNT THAT. UM BUT OF COURSE, THE DECISION THAT WE'RE MAKING IS BASED ON WE KNOW VARIOUS IS VERY CERTAINLY WHAT OUR INCOME NOW IS. WE HAVE IDENTIFIED IF WE HAD NO GROWTH, NO ANYTHING. WE STILL HAD THE ABILITY TO PAY THIS DEBT. WE KNOW THAT THIS IS ALMOST 1.5 TO 1 TIME RETURN. ON INVESTMENT, BUT THE REASON WHY WE'RE USING THE CERTIFICATE OF OBLIGATION VERSUS A REVENUE BOND WOULD BE THAT WE HAVE A TRIPLE A CREATED A RENTED CITY CREDIT. STATUS AS A CITY AS AN AIRPORT WITH WITH TO ESTABLISH THAT TODAY AS A CREDIT TENANT, NOT TENANT, BUT A CREDITOR OR CREDIT, IT WOULD. IT WOULD PROBABLY BE RANKED SOMEWHERE IN A MAYBE EVEN RATE. I THINK, I THINK OUR FINANCIAL ADVISOR IS HERE. UH BUT BUT WE WE'VE SPOKEN AND I THINK THE HIGHEST WE COULD POSSIBLY PROBABLY EXPECT. IT WOULD BE AN A RATING. UM I THINK DFW AIRPORT . THE LAST TIME I CHECKED WAS A PLUS. I THINK LOVE FIELD WHEN THEY'RE READY TO ALONE. IS IT LIKE AN A MINUS? THAT COULD BE CHANGED, BUT THOSE WERE JUST SOME OF THE THINGS I'VE READ, SO THAT'S A SIGNIFICANT DIFFERENCE IN RATE THAT WE WOULD GET ON THE BONDS AND THAT WE WOULD PAY SO AGAIN TRYING TO BE FISCALLY RESPONSIBLE AND MAKE SURE THAT TAXPAYERS ARE REAPING THE FULLEST BENEFIT THEY CAN IN THIS SITUATION HAPPENS BEYOND THE AIRPORT INFRASTRUCTURE, BUT TO USE THAT THAT IS MUCH LESS EXPENSIVE THAN OTHER DEBT IS THE REASON WE HAVE MADE THAT CHOICE TO USE CERTIFICATES OF OBLIGATION IN THIS CASE THAT IS ABSOLUTELY CORRECT IF WE WENT IF WE WERE RATED AT, SAY, AN A OR A PLUS CREDIT. AH SOMEWHERE IN THE RANGE OF 60 TO 80 BASIS POINTS TALKING TO $24.5 MILLION ISSUANCE. I'VE DONE SOME BACK OF THE ENVELOPE. CALCULATIONS I'M SURE OUR FINANCIAL ADVISOR REPUBLICAN DO IT A LITTLE BIT BETTER, BUT FOR ABOUT EVERY HALF PERCENT OF 50 BASIS POINTS. WE'RE TALKING ABOUT $1.6 MILLION ADDITIONAL TO THE PAYBACK OVER 20 YEARS. UM, SO IT BECOMES SIGNIFICANT MONEY FAIRLY QUICKLY. THEN. ANYONE ELSE HAVE QUESTIONS AND LET ME KNOW. OKAY MARK IF WE EVER ISSUED AIRPORT REVENUE BONDS, NOT IN MY TENURE, SO WE, DON'T WE SO WE WOULD EXPECT THAT AT LEAST I WOULD EXPECT YOU JUST TELL ME WHERE I'M WRONG THAT YOU KNOW, LOVE FIELD AND DFW HAVE A LOT OF REVENUE. THEY HAVE A LOT OF EMPLOYMENT REVENUE. WE JUST DON'T HAVE THAT WHAT WE HAVE IS A GENERAL AVIATION SIDE OF THE AIRPORT, AND IT'S VERY DIFFICULT . I WOULD THINK TO EXPECT THAT WE WOULD BE RATED AS WELL AS THEY ARE BECAUSE WE JUST DON'T HAVE THE REVENUE STREAM THEY DO.

IT'S PROVEN. I THINK IT WOULD ALSO BE COMPARING ABSOLUTELY AND IT BE COMPARING APPLES AND ORANGES. THOSE ARE WELL ESTABLISHED COMMERCIAL AIRPORTS AND WERE GENERALLY AVIATION.

MAYBE IT'S ALMOST LIKE AN APPLE TO AN APPLE SEED, RIGHT. I MEAN, YOU KNOW, WE HAVE THE WE MAY GET THERE, BUT WE'RE NOT THERE AND WE DON'T HAVE THE HISTORY OF REVENUE. WE DON'T HAVE THE EMPLOYMENT. WE DON'T HAVE THE AIRLINE COMMITMENTS. WE DON'T HAVE THE CONCESSIONS. WE DON'T HAVE ALL THOSE THINGS. THAT IS ABSOLUTELY CORRECT. MARKET ALSO JUST SAY, FOR EDIFICATION PURPOSES THAT THE IMPROVEMENTS THAT WE'RE TALKING ABOUT THIS AIRPORT, WHICH WILL ALLOW US IF WE LOOK AT JUST THE 110 ACRE SITE, THAT AGAIN WILL GENERATE A COUPLE $100 MILLION IN AVALON VALUE AND FUEL SALES AND EVERYTHING ELSE GOES ALONG WITH THAT, UM JOBS GET CREATED.

THAT'S DONE ON THE LAND LEASE. I BELIEVE THAT THE LAND LEASE ALONE ON THAT 10 ACRES FOR THOSE BILLIONS IS A COUPLE 100 GRAND A YEAR 180 SOMETHING LIKE THAT. I BELIEVE THAT'S THE NUMBERS I SAW FROM KIM CARLY DECISION. THAT LAND LIST, OF COURSE, IS 40 YEARS, AND AFTER THAT THOSE ASSETS THAT GOT BUILT BY THOSE PRIVATE TENANTS WE'RE ONLY TALKING ABOUT THE INFRASTRUCTURE WILL NOT THAT ALLOWS THAT TO BE DEVELOPED AND BE BUILT BY THESE PRETEND IT'S THOSE ASSETS REVERT BACK TO THE AIRPORT. AS WELL AT THE END OF LAND LEASE. CAN I ASK? ONE MORE? SORRY, MARK.

THERE IS THE CHANCE THAT IF THESE GET ISSUED THAT IT DOES COME BACK ON THE TAXPAYER, BUT WALK ME THROUGH WHAT HAS TO HAPPEN FOR THAT TO HAPPEN. MY UNDERSTANDING IS THAT WE

[00:40:03]

WOULDN'T HAVE THE LEASES IN PLACE IN THE HANGAR THAT WE BUILT AND THEN THE AIRPORT OPERATING FUND WOULD ALSO NOT HAVE TO HAVE THE MONEY TO DO IT. SO FROM YOUR PERSPECTIVE, WHERE YOU SIT, GIVE ME YOUR THOUGHTS ON THAT, RIGHT? I THINK WHAT YOU'RE LOOKING AT IS THE AIRPORT . THE AIRPORT REVENUES RIGHT NOW, WHICH ARE PREDICTED TO BE ABOUT $18 MILLION TOTAL FOR FISCAL YEAR. 24 IF THE AIRPORT COMPLETELY CEASED TO GENERATE REVENUE AND THAT WE'RE NOT ABLE TO MEET ITS DEBT OBLIGATIONS, THEN THEN IT WOULD FALL TO THE TO THE CITY TO HANDLE THOSE UM WITH THE TRANSFERS THAT THAT THE AIRPORT IS MAKING TO ITS OWN CONSTRUCTION FUND WITH THE GROWTH THAT WE'RE SEEING OUT THERE, IT WOULD TAKE QUITE A BIT OF FALL OFF FOR THE AIRPORT NOT TO BE ABLE TO MEET ITS DEBT OBLIGATION. AND THEN I WOULD COUNTER ALSO IF YOU CHOSE TO DO REVENUE BONDS I DON'T THINK THAT THE CITY OF MCKINNEY WOULD EVEN ALLOW A REVENUE BOND TO DEFAULT.

SO UM I THINK THAT YOU WOULD PROBABLY MEET ANY REVENUE BOND DEFAULTS WITH WITH YOUR FULL TAXING AUTHORITY. I THINK THAT WOULD BE THE LAST THING THAT YOU WANT TO DO IS DEFAULT ON THE REVENUE BONDS. SO, UM, I THINK IT WOULD ALWAYS IN ANY CASE COME BACK TO WHERE WE TO THE TO ULTIMATELY PAYING THEM BACK. THANK YOU. AND I JUST WANT TO CLARIFY. BY THE WAY, I MADE A STATEMENT ABOUT IMPROVEMENTS FOR 10 ACRES THAT THOSE SPECIFIC IMPROVEMENTS ARE BEING FUNDED THROUGH TOURIST BUT AGAIN, SAME TRYING TO CONVEY IT AN IDEA. IT STANDS. SAME WITH WHAT WE'RE TALKING ABOUT HERE IN THE IMPROVEMENTS FOR THE FURTHER DEVELOPMENT OF 1.5 NUMBER THAT YOU MENTIONED WOULD BE WHERE YOU WOULD BE TAKING THE AMOUNT OF REVENUE THAT THE UM, HANGER WOULD BE GENERATING IN BOTH LEASE AND FUEL IN PAYING FOR NOT ONLY ITSELF, BUT ALSO THE CUSTOMS FACILITY, WHICH DOES NOT GENERATE REVENUE. EXACTLY. LET'S GO AHEAD THROUGH THE YOU WANT TO

[Consider/Discuss/Act on an Ordinance Authorizing the Issuance of “City of McKinney, Texas, General Obligation Bonds, Series 2023A”, and Delegating Matters Relating to the Sale and Issuance of Said Bonds to an Authorized City Official(s)]

[Consider/Discuss/Act on an Ordinance Authorizing the Issuance of “City of McKinney, Texas, General Obligation Bonds, Taxable Series 2023B”, and Delegating Matters Relating to the Sale and Issuance of Said Bonds to an Authorized City Official(s)]

GO THROUGH THE NEXT? UM SURE, READ THEM. 1ST 230913 CONCERNED ACT ON AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY MCKINNEY, TEXAS GENERAL OBLIGATION BONDS SERIES 2023, A AND DELEGATING MANAGED TO RETAIN RELATING TO THE CELL AND ISSUANCE OF SAID BONDS TO AN AUTHORIZED CITY OFFICIAL. UM, THIS ISSUANCE. IS FROM OUR 2019 GENERAL OBLIGATION AUTHORIZATION. THIS IS. THE NON TAXABLE BONDS OR FOR THE OLD SETTLERS, RECREATION FACILITIES FOR PARKING IMPROVEMENTS FOR PLAYGROUND IMPROVEMENTS. WE'VE WE'VE RECENTLY DONE A RENOVATION OF THE FACILITY, THE INSIDE THE FACILITIES, THIS WOULD BE TAKEN CARE OF SOME OF THE OUTSIDE PORTION, ALSO A FEW OTHER SMALL PROJECTS, BUT THAT'S ABOUT 14.9 MILLION. THE THIRD ITEM. WHICH IS THE TAXABLE SALE IS ABOUT $30 MILLION FOR, UH, SOCCER FIELD RENOVATIONS AT CRAIG RANCH, SO RIGHT. AND ALTHOUGH YOU HE WENT THROUGH ALL THREE ITEMS AND WE CERTAINLY COULD, BUT IN ALL THREE AT SAME TIME, I DON'T WANT TO DEAL WITH CERTAIN ON EACH ITEM INDIVIDUALLY. I DON'T WANT THERE TO BE ANY ANY ANYONE HAVING TO HAVE ANY CONFLICT THAT THEY SO I BELIEVE THEY DO WITH REGARD TO MR MAYOR. THE BOND COMMITTEE, THE 2024 BOND COMMITTEE HAS DONE A LOT OF WORK TO SAY, WHAT IS IT THAT WE CAN AFFORD? AND I'VE SAT IN ON THE FINANCE COMMITTEE TWICE, AND THEY'VE YOU KNOW, THEY WORKED REALLY HARD TO SAY WE WANT TO MAKE SURE THAT THE TAXES WON'T GO UP. WE WANT TO PUT EVERY SAFEGUARD IN PLACE. JUST PASSING ANY OF THESE HAVE ANY IMPACT ON WHAT ON WHAT THE BOND COMMITTEE CAN DO, OR SHOULD THE BOND COMMITTEE RETHINK THINGS BASED ON ANY OF THESE THREE ITEMS? NO BECAUSE THE 2019 ISSUE OF THE GEOS THAT WERE THERE WAS ALREADY INSIDE THE PLAN. AND THEN WITH THE AIRPORT, SETTLING THE DEBT ON THE CEOS THAT WOULD ALSO FALL OUTSIDE OF ANY OF OUR DEBT CAPACITY THAT WE TALKED ABOUT DOESN'T IMPACT OUR DEBT CAPACITY WHATSOEVER WITH RESPECT TO R I N S RATE CORRECT. THANK YOU. QUESTIONS TREVOR MAYNARD PRESENTED, UM WHAT IS REMAINING IN THE FUND OR REMAINING FROM THE 2019 BOND, AND IT LOOKED LIKE IT WAS ABOUT 34.9 MILLION THAT WAS STILL LEFT IN PARKS. SO ARE THESE PROJECTS BEFORE OR AFTER THAT? THAT'S A VERY GOOD QUESTION. AND IF THIS ACTUALLY IS ALL THERE WAS $44.9 MILLION REMAINING, THIS WILL EXHAUST THE 2019 AUTHORIZATION. FOR PARKS. THIS IS THE BALANCE. YES. ARSES JUST THE THIRD ITEM CORRECT. BUT THE PARTS ARE THE 2ND AND 3RD ITEM. WE HAVE JUST HAVING TWO SEPARATE ISSUANCES. DON'T WANT ANYBODY CONFUSED, THINKING WE'RE TAKING MONEY FROM A PART. THAT'S THAT'S WHAT I WANT TO TAKE THESE ITEMS INDIVIDUALLY. UM CAN YOU SEE THAT POTENTIAL BUT, YEAH, YES, SIR. MARK, I DO WANT TO

[00:45:05]

JUST GO BACK. AND SINCE I KIND OF OVERLAP TWO THINGS, AND THE QUESTION WAS WAS BROUGHT UP ABOUT THE TOURIST BALANCE JUST TO GIVE KIND OF A. OVERVIEW OF SUMMATION OF WHAT TOOK PLACE EARLIER TODAY ON TOURS. $2.4 MILLION ROUGHLY IMPROVEMENTS TO UNLOCK THOSE 10 ACRES. 2.8 MILLION TO UNLOCK THOSE 10 ACRES. AND THEN WE'VE IDENTIFIED $180,000 ANNUALLY IN AND GROUND LEASE ABOUT A HALF A MILLION DOLLARS ANNUALLY AND TAXES. PAID SUBSIDIZING ROUGHLY 200 MILLION TALKING ABOUT ALL ENTITIES. UM AND THEN FUEL CELLS. AND WHAT ARE YOUR QUESTIONING MY MATH? I THINK. NO I WAS JUST TRYING TO MAKE SURE THAT WE WERE GOOD. YES I'M TALKING ABOUT ALL THE TAXING ENTITIES ROUGHLY SO, UM AND THEN, OF COURSE, FUEL SALES AND WHATNOT. RETURN ON THAT INVESTMENT IS STRONG. I HAVE TO GET MY CALCULATOR OUT. BUT I CAN TELL YOU WHAT IT IS. IF IT'S OFFICIALLY A LOT IT'S AND BY A LOT. WE MEAN ABOUT 20. PLUS BEFORE WE GET INTO A LOT OF OTHER ACTUALLY 29 30% RETURN. UM, CRAZY AMOUNT OF YOU IF YOU LOOK AT IT THAT WAY, AND CERTAINLY THERE'S WAY OTHERWISE YOU COULD LOOK AT IT, BUT THE END OF THE LEAST TERMS. THE CITY OWNS ALL THE BUILDINGS THAT WERE BUILT AND PAID FOR THEMSELVES. THAT'S CORRECT. I WOULDN'T DO.

YEAH AND AGAIN. I'M MAKING ALL THESE STATEMENTS BECAUSE I DO UNDERSTAND THAT. WE HAD A BOND ELECTION AND SO PEOPLE, YOU KNOW, THEY HEAR ANY TALK ABOUT DEBT. WHETHER IT WAS INTEREST WE HAD SOME. I'VE GOT EMAILS OR WHETHER TALKING NOW. BUT WHEN YOU START HEARING THE NUMBERS AND YOU START REALLY REALIZING WHAT'S GENERATED, IT'S UNDERSTANDABLE. A LOT OF PEOPLE DON'T KNOW WHEN WE HAD THE FIRST ELECTION. I REMEMBER ELECTION BEFORE I WAS ELECTED ON THAT FIRST BOND THAT'S BEEN REFERENCED A COUPLE TIMES AT THE AIRPORT AND I WOULD TALK TO PEOPLE. THE GENERAL SENTIMENT OUT THERE WAS HEY, I DON'T OWN AN AIRPLANE, SO THE AIRPORT DOESN'T BENEFIT ME. UNDERSTANDABLY I COULDN'T HAVE TOLD YOU ALL THE WAY TO THE AIRPORT BENEFITS US BEFORE I WAS MAYOR AND GOT TO REALLY UNDERSTAND IT. TRYING TO GIVE SOME OF THESE NUMBERS AND GIVE THE ABILITY FOR PEOPLE TO UNDERSTAND. WHY DO WE MAKE AN INVESTMENT LIKE THAT? WHY WOULD WE SPEND $2.5 MILLION IN TOURIST DOLLARS? BECAUSE WE HAVE HUNDREDS AND HUNDREDS AND HUNDREDS OF $1000 IN RETURN COMING BACK AND THAT ACTUALLY DOES HELP EVERY TAXPAYER IN THIS IN THE CITY AGAINST THOSE REVENUES IF WE'RE TALKING ABOUT AIRPORT GENERATED STUFF. COMING FROM INVESTMENTS THAT STAYS IN THE AIRPORT AT THE END OF THE DAY. THAT TOURISTS WILL ALSO END THAT MONEY WILL JUST COME TO GENERAL FUND INSTEAD OF SUBSIDIZING OTHER THINGS THAT BENEFIT THE CITY IN MANY, MANY, MANY DIFFERENT WAYS THAT WE'RE NOT EVEN TALKING ABOUT RIGHT NOW. LIKE COMPANIES THAT MOVE HERE FOR THAT VERY REASON AND BENEFIT. OH, THAT'S IT. ITEM 230912. IS THERE A MOTION? UM MR MAYOR. I'LL MAKE A MOTION. BUT CAN I MAKE A COMMENT TO MAKE A MOTION? WE APPROVE IT, BUT I WANT TO MAKE A REMARK. LET ME GET A 2ND 1ST IF WE NEED TO. A SECOND, UM WE WERE SAID EARLIER THAT GOD DOESN'T LIKE UGLY. UM WE'RE IN TROUBLE. UGLY ALL OVER THIS THING. AND LET ME TELL YOU WHY. THERE'S CALCULATED FIVE WAYS WE CAN MOVE FORWARD. LET ME GET RID OF THE FIRST ONE. FIRST WE CAN ASK FOR GENERAL OBLIGATION DEBT. IT'S BEEN DONE TWICE, RIGHT GENERAL OBLIGATION BONDS ON THE AIRPORT AND BOTH TIMES TAXPAYERS HAVE SAID NO SO I FOR ONE, AND I DON'T THINK ANYONE ELSE ON COUNCIL IS WILLING TO DO THAT. SO THAT'S ONE. I'M GONNA THROW THAT ONE OUT. THE OTHER THING WE CAN DO IS WE CANNOT BUILD IT. WE CAN JUST SAY NOT GOING TO DO IT. WE DON'T HAVE TO CASH IN THE AIRPORT FUNDS WERE NOT GOING TO DO IT. THAT WOULD BE UGLY BECAUSE WE WOULD LOSE ADVIL OR IN VALUE. THESE PLANES THAT THE MAYOR'S TALKED ABOUT, THEY WOULD SIMPLY GO SOMEWHERE ELSE. WE'VE GOT A PROFOUNDLY UNIQUE ASSET HERE IN MCKINNEY, AND WE SIMPLY WOULDN'T BUILD IT AND THE TAXPAYERS WOULD HAVE EVERY RIGHT TO COME TO ME AND SAY, WHAT WERE YOU THINKING? THIS WOULD HAVE EDUCATED THIS MANY KIDS IN THE I S D. IT WOULD HAVE HELPED THIS. MANY POLICE OFFICERS WOULD HAVE DONE THIS AND THAT THAT'S UGLY. NEXT THING WE CAN DO IS WE CAN DO AIRPORT REVENUE BONDS, WHICH MR HOLLOWAY TALKED ABOUT A MINUTE AGO, AND HE TALKED ABOUT THAT WE COULD ISSUE THOSE THEY COULD PAY THE DEBT. AND THE IT WOULD ONLY BE BACKED BY THE AIRPORT. AND HE ALSO SAID THAT WE WOULD PAY ABOUT $1.6 MILLION MORE AN INTEREST OVER 20 YEARS TO DO THAT. THAT'S NOT REALLY COSTING THE TAXPAYERS PER SE BECAUSE WE GET YOUR ADVIL OR IN VALUE ON THE AIRPLANES, RIGHT? WE STILL HAVE THE AIRPLANES THERE, AND THEY GENERATE THE TAX REVENUE FOR THE COUNTY, THE HIGHEST IN THE CITY. BUT WHAT THEY WOULD ALSO DO IS THEY WOULD ROB THE AIRPORT OF ADDITIONAL REVENUE TO REINVEST TO REPAIR THIS TO REPAIR THAT, AND THE UGLY THERE IS PATRICK. YOU PAID

[00:50:03]

A $1.6 MILLION PREMIUM ON INSURANCE POLICY. THAT ESSENTIALLY SAID. IT'S NOT GOING TO COME BACK TO THE TAXPAYER WHERE IT REALLY PROBABLY NEVER WAS. THAT'S THE UGLY THERE. THE OTHER WAY WE COULD DO IT IS A P THREE AND THAT'S THE ONE I'VE HEARD FROM MOST PEOPLE, BUT I'VE ASKED. I'VE TALKED. A LOT OF PEOPLE ABOUT THIS. WOULD'VE P THREE IS A PUBLIC PRIVATE PARTNERSHIP WHERE DEVELOPER COMES IN AND DOES IT NOW HERE'S THE UGLY WITH THAT THE CORE NINE HANGAR WAS A P THREE. THE FBO THAT WE JUST GOT DONE WITH. DEVELOPER WENT BANKRUPT. SECOND ONE WOULD BANKRUPT WE'RE TAKING FOREVER ON THIS THING. NEXT IS AND I THINK THIS RESONATES WITH MOST PEOPLE IS THAT WE ARE A TRIPLE A RATED CITY AND WE CAN ISSUE DEBT AT THE LOWEST RATE THAT WE CAN. A DEVELOPER SIMPLY DOESN'T HAVE THAT IN HIS ARSENAL . SO WHEN HE'S COMING TO US, WE'RE ALL SITTING DOWN HERE, SO I CAN SAY IT. HE'S IN IT FOR A PROFIT. THAT'S MY JOKE. SOMEBODY ALL RIGHT? SO HE'S IN IT FOR A PROFIT. WE'RE GOING TO PAY THAT DEBT INTEREST RATE THAT HE'S PAYING. PLUS, WE'RE GOING TO PAY HIS PROFIT MARGIN. SO WHAT DOES IT WITH THE CITIZENS COME TO ME ISN'T SAY YOU'RE A CORPORATE STATIST. YOUR DEPUTY IST YOU'RE CHOOSING THIS BUILDER. THIS NET COST THE TAXPAYER THREE OR $4 MILLION MORE TO DO IT THAN IF YOU JUST SIMPLY ISSUED. GENERAL OBLIGATION DEBT. THERE'S THE UGLY THERE. OR WE CAN ISSUE THESE AIRPORT. REVENUE BONDS. I DON'T WE ALL HAVE THE BENEFIT OF PERFECT VISION WHERE WE'RE LOOKING IN THE REAR VIEW MIRROR.

WE ALL HAVE 2020 VISION, LOOKING IN THE REAR VIEW MIRROR AND WE'RE ALL SITTING THERE ABLE TO JUDGE IT. I CAN SIT THERE AND LOOK AT MY LIFE. I CAN LOOK AT MY WEEK. I WISH I HAD A MULLIGAN ON THAT ONE. AND IT'S TRUE. BUT WE WHAT WE HAVE TO DO UP HERE IS WE HAVE TO DO WHAT WE THINK IS BEST FOR THE CITIZENS OF MCKINNEY. NOW EACH ONE OF THESE COUNCIL PEOPLE HAS AN IDEA ABOUT WHICH OF THE FIVE OPTIONS I'VE GONE OVER IS THE BEST ONE. BUT FOR ME, I DON'T THINK THIS IS EVER GOING TO COME BACK ON THE TAXPAYER. I THINK THE AIRPORT REVENUES ARE GOING TO PAY IT.

IT'S NOT GOING TO IMPACT WHAT WE'RE GOING TO BE DOING IN THE SPRING. IT'S SIMPLY A MECHANISM OF WHICH THE CHEAPEST PATH FORWARD TO BENEFIT THE TAXPAYING CITIZENS AND BENEFIT THE AIRPORT OPERATING FUND TO KEEP IT AS PROFITABLE AS WE CAN. THANK YOU, MR MAYOR. PATRICK IT'S ONE. ADD ONE THING TO WHAT YOU SAID, UM, GREAT, BY THE WAY, UM, CONCISE POINT AWAY TO GO THROUGH THOSE FIVE UGLIES AND THE JUST TO ADD TO THE PRIVATE PARTNERSHIP. THE THOUGHT THAT BECAUSE I HAVE ALSO A LOT OF CONVERSATIONS, PEOPLE SAY, YOU KNOW, DO A P THREE AND IT WILL. IT WILL BE ON ON THEM.

WELL NO. WE ACTUALLY SIGNED LEASE AND THAT'S THE THREE AND $4 MILLION THAT WE PAY MORE AND WE SIGNED. THAT LEASE, AT LEAST IS GUARANTEED BY THE BACKED BY THE FULL FULL CREDIT RATING OF OUR CITY AND WE CAN'T DEFAULT ON THAT EITHER. THAT WOULD IT'S IT WORKS. IT'S NOT MUCH DIFFERENT.

THEN THE DEBT ISSUE FROM THE STANDPOINT THAT WE'RE NOT DEFAULTING AS A CITY. ON AT LEAST THAT WE SIGN IN P THREE FOR PROPERTY THAT WILL END UP COSTING US MORE THAN WHEN WE CAN DO IT OURSELVES. SO ANYWAY, THERE'S A BIT OF MOTION AND A SECOND AND I HAVE DOES. EVERYONE VOTED? GIVE ME A SECOND. THANK YOU. MOTION PASSES. ITEM 23913 THAT WAS ALREADY DISCUSSED PROMOTION. EMOTION THAT WE CLOSE THE PUBLIC HEARING TO PROVE THAT ITEM ALSO PUBLIC HEARING, BUT YES, UM SECOND PLEASE CAST YOUR VOTES. BUTTON. SOMEONE HAVE A BUTTON. MOTION PASSES ITEM 230914 THAT HAS BEEN DISCUSSED. THEIR MOTION MOTION. WE APPROVE IT ON HIM. SECOND CAST YOUR VOTES.

[Consider/Discuss/Act on Adoption of a Resolution Determining a Public Necessity to Acquire Property Easement Rights for Public Use by Eminent Domain for a Water Line & Sanitary Sewer Line Easement and a Temporary Construction Easement associated with the SH 5 Utility Relocation Project (WA1633 & WW1633) which Property is Located at the Northwest Corner of S. McDonald Street and Eldorado Parkway and Authorizing the City Manager to Establish Procedures for Acquiring the Easements on Said Property, and Take All Steps Necessary to Acquire the Needed Property Rights in Compliance with all Applicable Laws and Resolutions]

[Consider/Discuss/Act on Adoption of a Resolution Determining a Public Necessity to Acquire Property Easement Rights for Public Use by Eminent Domain for a Water Line Easement and a Temporary Construction Easement associated with the SH 5 Utility Relocation Project (WA1633 & WW1633) which Property is Located on the East Side of S. McDonald Street North of Spur 399 and Authorizing the City Manager to Establish Procedures for Acquiring the Easements on Said Property, and Take All Steps Necessary to Acquire the Needed Property Rights in Compliance with all Applicable Laws and Resolutions]

[Consider/Discuss/Act on Adoption of a Resolution Determining a Public Necessity to Acquire Property Easement Rights for Public Use by Eminent Domain for a Water Line Easement and a Temporary Construction Easement associated with the SH 5 Utility Relocation Project (WA1633 & WW1633) which Property is Located at the Northeast Corner of N. McDonald Street and E. University Drive and Authorizing the City Manager to Establish Procedures for Acquiring the Easements on Said Property, and Take All Steps Necessary to Acquire the Needed Property Rights in Compliance with all Applicable Laws and Resolutions]

[Consider/Discuss/Act on Adoption of a Resolution Determining a Public Necessity to Acquire Property Easement Rights for Public Use by Eminent Domain for a Water Line Easement associated with the SH 5 Utility Relocation Project (WA1633 & WW1633) which Property is Located on the East Side of S. McDonald Street North of Spur 399 and Authorizing the City Manager to Establish Procedures for Acquiring the Easement on Said Property, and Take All Steps Necessary to Acquire the Needed Property Rights in Compliance with all Applicable Laws and Resolutions]

[Consider/Discuss/Act on Adoption of a Resolution Determining a Public Necessity to Acquire Property Easement Rights for Public Use by Eminent Domain for a Water Line Easement associated with the SH 5 Utility Relocation Project (WA1633 & WW1633) which Property is Located on the Southwest Corner of S. McDonald Street and Eldorado Parkway and Authorizing the City Manager to Establish Procedures for Acquiring the Easement on Said Property, and Take All Steps Necessary to Acquire the Needed Property Rights in Compliance with all Applicable Laws and Resolutions]

PASSES. WE NOW MOVE TO ITEM 230915 CONSIDER ACT ON ADOPTION OF RESOLUTION. DETERMINING THE PUBLIC NECESSITY TO REQUIRE PROPERTY EASEMENT RIGHTS REPUBLIC USE BY EMINENT DOMAIN FOR WATERLINES, SANITARY SEWER LINE USE MINT AND TEMPORARY CONSTRUCTION USE MINT ASSOCIATED WITH FIVE UTILITY RELOCATION PROJECT, WHICH PROPERTY IS LOCATED THE NORTHWEST CORNER OF ST OF TAPPING DOWN STREET AND EL DORADO PARKWAY AND AUTHORIZING CITY MANAGER TO ESTABLISH PROCEDURES REQUIRING THESE MINTS ON SAID PROPERTY. AND TAKE ALL STEPS NECESSARY TO REQUIRE THE NEED OF PROPERTY RIGHTS COMPLIANCE WITH ALL THE APPLICABLE LAWS AND RESOLUTIONS AND GARY AS YOU TALK ABOUT THIS ITEM. I BELIEVE THAT ALTHOUGH, OF COURSE THEY WILL BE ROLL CALL VOTES AND WE WILL VOTE ON EVERYTHING INDIVIDUALLY. THEY ARE ALL RELATED TO THE SAME

[00:55:04]

PROJECT, JUST DIFFERENT PROPERTIES THAT ARE IMPACTED BY THE PROJECT. CORRECT THAT IS CORRECT, SIR, IF YOU WILL GIVE US A LET'S GO THROUGH THE ENTIRE PRESENTATION. THAT WAY, YOU WON'T HAVE TO BE A PORTION. YOU WON'T HAVE TO REITERATE EACH TIME I THINK IF YOU COMBINE YOUR PRESENTATIONS, BUT JUST SHOW THE THINGS THAT ARE DIFFERENT LOCATIONS. ALL THE CIRCUMSTANCES ARE YEP, THERE'S FIVE ITEMS THAT'S CORRECT. YES SIR. SO I WILL HAVE TO READ EACH ONE OF THOSE WHO APOLOGIZE. YOU CAN HEAR MY VOICE A LOT, BUT GO THROUGH IT SO THANK YOU. MAYOR GRAHAM, DIRECTOR OF ENGINEERING, UM BACK HERE BEFORE YOU TO TALK ABOUT THE HIGHWAY FIVE PROJECT.

AS YOU KNOW, TEXTILE IS CONSTRUCTING OR HAS PLANS TO RECONSTRUCT HIGHWAY FIVE FROM JUST NORTH OF 380 ALL THE WAY DOWN SOUTH TO 399. THEY HAVE A VERY AGGRESSIVE SCHEDULE. AS PART OF THAT PROJECT, THEY HAVE ASKED THE CITY TO REMOVE ALL OF OUR PUBLIC UTILITIES, WATER AND WASTEWATER LINES FROM THE PUBLIC RIGHT AWAY AND INTO PRIVATE EASEMENTS. SO WE HAVE A PROJECT ON GOING TO DESIGN THOSE NEW UTILITIES AND THEN WE ARE IN THE ACQUISITION PROCESS RIGHT NOW TO MOVE THOSE LINES OUT. UM WITH ALL, UM, PROPERTY CASES LIKE THIS ON EMINENT DOMAIN ACQUISITIONS FOR RIGHT AWAY OR EASEMENTS. THE FIRST STEP TO THE CITY DOES IS WE ALWAYS GO OUT AND GET AN APPRAISAL. WE WANT TO DETERMINE WHAT THE FAIR MARKET VALUE. FOR A PROPERTY IS, UM WE USE THAT APPRAISAL TO MAKE THE FIRST INITIAL OFFER TO A PROPERTY OWNER PROPERTY OWNER HAS A SPECIFIC STATEMENT DATED TIME TO MAKE A RESPONSE AND MAKE A COUNTER OFFER. OR HE CAN ACCEPT THAT THEY CAN ACCEPT THE OFFER. WE CAN NEGOTIATE WITH THEM. WE HAVE A MAKE A FINAL OFFER SAME NEGOTIATION PROCESS BECAUSE OF THE TIMELINE ASSOCIATED WITH TECH START MOVING FORWARD WITH THE PROJECT. WE HAVE TO SOME POINT MOVE FORWARD, AND THIS ALLOWS THE IMMINENT DOMAIN PROCESS ALLOWS US TO GET ACCESS TO THE PROPERTY ESTABLISHES A FAIR MARKET VALUE FOR THE PROPERTY. WHAT HAPPENS WHEN WE DO IMMINENT DOMAIN COUNCIL GIVES STAFF THE AUTHORITY TO FILE AN EMINENT DOMAIN CASE FILED OUT WITH THE COUNTY, COLLIN COUNTY, THEY WILL NOMINATE THREE SPECIAL COMMISSIONERS. SPECIAL CONDITIONERS WILL HERE THE CASE FROM THE PROPERTY OWNER AND THE CITY AND WHY WE THINK THE VALUE OF WHAT THE PROPERTY IS. THEY WILL MAKE A DETERMINATION OF WHAT THE LAND VALUE IS. THIS IS NOT A TAKING. THIS IS A PROCESS DETERMINED FAIR MARKET VALUE AND COMPENSATE THE LANDOWNER FOR TAKING EITHER PERMANENT RIGHT AWAY. OR IN THIS CASE, ALL EASEMENTS WATER, WASTEWATER OR TEMPORARY CONSTRUCTION. EASTMAN UM YOU KNOW, WE HAVE FIVE TONIGHT ON THIS ON THIS PROJECT WE DID FOR LAST WEEK AND WAS TALKING WITH MR GRIMES, AND HE'S LIKE GARY, THIS IS THIS IS A LOT OF IMMINENT MAIN CASES. WE DON'T WE DON'T LIKE TO HAVE THIS MANY. WHAT CAN YOU GIVE ME SHED A LITTLE LIGHT? SO I WANT TO BRING SOME STATISTICS FOR TONIGHT. SO ON THIS PARTICULAR PART OF THE PROJECT, WE HAVE 62 PARCELS TO ACQUIRE UM OF THOSE WE HAVE ALREADY ACQUIRED 36 THROUGH NEGOTIATIONS, SO THAT'S 58% WE'VE ALREADY ACQUIRED THROUGH. JUST YOU KNOW THAT THAT PROCESS. WE ARE STILL NEGOTIATING 16 OF THOSE SO 26% ARE UNDER NEGOTIATION AND THEN BETWEEN THE FOUR LAST WEEK AT THE LAST COUNCIL MEETING ONE SEVERAL COUNCIL MEETINGS AGO AND THEN THE FIVE TONIGHT THAT'S 10 THAT WE ARE UM, LOOKING AT FOR EMINENT DOMAIN THAT MAY GO UP. YOU KNOW, AS WE CONTINUE THESE LAST 16 PROPERTIES NEGOTIATING, BUT YOU KNOW, SO FAR, WE'VE WE'VE HAD FAIRLY GOOD LUCK COME INTO A FAIR RESOLUTION WITH THE VARIOUS PROPERTY OWNERS. UM COULD I ASK YOU OF THESE FIVE ITEMS THAT ARE BEFORE US TONIGHT? HOW MANY OF THOSE THE PROPERTY ON EARTH CAME TO THE TABLE TO NEGOTIATE WITH YOU. UH, UM. FOUR HAVE BASICALLY REFERRED TO THEIR ATTORNEY. ONE HAS TALK TO US, BUT THE NEGOTIATIONS ARE FLUID AND SOMETIMES YOU FEEL LIKE YOU'RE MAKING PROGRESS. AND THE NEXT TIME WE TALK TO HIM, I JUST WHAT HAPPENED? WHERE DID THIS PERSON SO THEY HAVEN'T REFERRED US TO AN ATTORNEY YET, BUT WE'RE NOT MAKING ANY PROGRESS ON THAT PARTICULAR PROPERTY. AND THIS IS JUST GIVING YOU THE OPTION TO MOVE FORWARD WITH EMINENT DOMAIN. IF NEGOTIATIONS SHOULD FAIL. THAT'S CORRECT. AND TO YOUR POINT MAYOR PRO TEM WHEN WE FILE THE WITH THE COURT THAT WE HAVE REMAINED, THAT'S A YOU KNOW, PART OF THE NEGOTIATION TACTICS IT IT SHOWS THE PROPERTY AND WE ARE SERIOUS AND SOMETIMES BRINGS THEM TO THE TABLE AND JUST GET THE DEAL DONE. THEY DON'T WANT TO MESS WITH THEIR OWN ATTORNEY'S FEES OR WHATEVER. SO I WILL GO THROUGH EACH OF THE PROPERTIES OF THE EXHIBITS. I THINK, THOUGH THE OVERVIEW THAT YOU GAVE IS PUT INTO ALL FIVE, SO WE JUST GO THROUGH THE PROPERTIES. DO YOU WANT TO PAUSE BETWEEN EACH ONE