Dec 05, 2023 City Council Work Session

READY? GOOD AFTERNOON. TODAY IS TUESDAY, DECEMBER 5TH YEAR, 2023 WERE IN COUNCIL CHAMBERS AT 222,

[CALL TO ORDER]

[00:00:13]

[PUBLIC COMMENTS ON AGENDA ITEMS]

IT'S BEEN A WHILE, SIR. YES, IT'S GOOD TO BE BACK, ACTUALLY. YOU KNOW, AS YOU KNOW, MY TIME HAS BEEN OCCUPIED WITH CARING FOR MY WIFE AND THAT'S A LITTLE MORE IMPORTANT THAN BEING HERE.

BUT I JUST HAD TO. I JUST HAD TO COME HERE. UM I THINK I WROTE ON MY CARD THAT I WAS GOING TO SPEAK ON BOTH. BOTH ITEMS. UH THE WHAT DO WE CALL HIM? THE PLAZAS. THE. YEP BUT LOWER FIVE PLAZA. THANK YOU. UM, WHILE THOSE ARE AMBITIOUS UM THERE. THEY FRIGHTEN ME A LITTLE BIT FROM THE STANDPOINT OF AND I GET THE TRAFFIC PART OF IT AND GET THE UNIQUE PART OF IT. YOU KNOW, I GET THE LEGACY PART OF IT FOR ALL OF YOU ALL. BUT WHAT? WHAT CONCERNS ME MORE THAN THAT IS I HAVEN'T DONE MUCH POLITICAL STUFF. I HAVEN'T BEEN ABLE TO DO MUCH CAMPAIGNING AND TALKING TO PEOPLE. SO I'VE BEEN DOING ALL OF MY STIRRING OF THE POT. UH EMAIL PHONE CALLS TEXT MESSAGES.

MY WIFE IS STARTING AWAY. THANK ME NOW. IS THAT YOUR PHONE DOING THAT? IS THAT YOUR PHONE DOING THAT? WHO IS THAT? BUT WHAT I'M HEARING FROM SOME PEOPLE IS AND I WAS TALKING I WAS TALKING ABOUT THIS WITH PATRICK A LITTLE BIT. THERE IS A GENERAL SENSE. WHETHER YOU'RE IN PORTLAND'S MAIN PORTLAND'S. OREGON PORTLAND, TEXAS, PORTLAND'S FOR IRELAND, FLORIDA I DON'T CARE.

PEOPLE DON'T TRUST. THE GOVERNMENT, LOCAL STATE FEDERAL LIBRARY COMMISSION. I DON'T CARE WHO IT IS. THE LEVEL OF TRUST HAS KIND OF SHRUNK. NOW PART OF THAT IS WHAT'S GOING ON IN WASHINGTON. AND WHAT WHAT HAPPENED IN AUSTIN? BUT IT'S ALMOST LIKE A LIKE A FUNGUS LIKE DISEASE. WELL, THAT'S GOING TO PUT A DAMPER THINGS THAT WE WANT TO DO. THE AIRPORT DOESN'T SCARE ME. BECAUSE OF THE NOISE OR ANYTHING LIKE THAT. IT SCARES ME THAT THE PEOPLE THINK WELL, WE ALREADY SAID NO TO THAT. WITH THE BOND THING AND THEY'RE ALL THEY'RE GOING TO GO AHEAD AND DO IT ANY WAY THEY DON'T REALIZE THE IMPORTANCE OF THE ASSET. AND HOW, IF DONE, RIGHT, IT CAN BE SOMETHING. NOW WE'RE NOT GONNA HAVE SOUTHWEST AIRLINES JETS FLYING IN HERE TOMORROW. WE DO HAVE A LONG TERM PLAN. BUT I WANT US TO BE UNIQUE. AND I WANT US TO BE EMBRACING. OF THE TECHNOLOGY THAT'S OUT THERE. I DON'T WANT TO BE A 20TH CENTURY MCKINNEY. AND WE'RE BEING PASSED BY 21ST CENTURY RESTED IN COUNTRY THE REST OF THE WORLD. SO LET'S EXPLORE THE 21ST CENTURY OPPORTUNITIES. AT THE AIRPORT. GOT TO BE A WAY WE CAN DO IT. THAT'S IT. THANK YOU ALL.

THANK YOU, DAN. LEAVE MORE. CITY. ON ELECTION DAY, NOVEMBER 7TH. WHILE MANY OF US WERE WORKING THE ELECTION THERE WAS A $24.5 MILLION CERTIFICATE OF OBLIGATION OR C O BOND FOR THE AIRPORT, WHICH WAS APPROVED UNANIMOUSLY. I LISTENED TO THE AUDIO FROM THE MEETING, AND IT SOUNDED LIKE IT WAS JUST FOR A NEW HANGAR, NOT FROM MCKINNEY AIRPORT COMMERCIAL SERVICE, WHICH, AS YOU ALL KNOW, WAS VOTED DOWN UNIT SOUNDLY, BOTH TIMES IT WAS PUT ON THE BALLOT FOR A FOR A VOTE UNDER A GENERAL OBLIGATION BOND REFERENDUM. WHY DO I CARE OR SPEAK HERE LIVING IN FAIRVIEW? WELL, IT'S BECAUSE I SHARE A ZIP CODE AND THE SD WITH MCKINNEY YET I DON'T GET TO VOTE ON SOMETHING THAT IMPACTS ME MORE THAN MOST. BECAUSE OF LIVING IN THE FLIGHT PATH. I AGREE WITH ONE OF YOUR SPEAKERS THAT NIGHT THAT SAID THAT NEW DEBT IN THE CURRENT ECONOMIC CLIMATE PUTS A BAD TASTE IN THE MOUTH WHEN IT'S SOMETHING FOR SOMETHING THAT IS SUCH A LOW PRIORITY ON THE LIST FOR THE CITIZENS OF MCKINNEY. YOU TOOK A ROUTE 12 TWICE THAT FAILED BY ASKING THE VOTER TO WEIGH IN, AND IT'S SIMPLY GROTESQUE THAT YOU ARE NOW GOING THAT RABBITS

[00:05:01]

[DISCUSS REGULAR MEETING AGENDA ITEMS for the City Council Regular Meeting to be held on Tuesday, December 5, 2023 at 6:00 p.m. ]

[00:10:03]

COUNCILMAN ROGERS WAS IT SEEMS BEYOND THE PALE TO SUSPECT THAT HE HANDED OFF ANY CORRUPTION TO YOU. RIGHT YOU KNOW, WE ROTATE THE COUNCIL. THAT'S WHAT IT IS. NOW WHAT ALSO IS TRUE AND WE'RE GOING TO SEE THIS FROM THE STAFF PRESENTATION TODAY IS THAT MOST EVERY AIRPORT IF NOT, EVERY AIRPORT KIND OF GREW UP THE SAME WAY. THINK ABOUT THIS WHEN WE'RE GOING THROUGH TODAY. THINK ABOUT ADDISON. GENERAL AVIATION AIRPORT. COMMERCIAL SERVICE NEVER WILL BE. AND LEFT FIELD GENERAL AVIATION IN COMMERCIAL SERVICE BOTH OWNED BY THE CITIES. BOTH FINANCED AND SIMILAR WAYS. THAT'S WHAT AIRPORTS ARE HAVE LIVED HERE 27 YEARS. THIS AIRPORT HAS BEEN HERE FOR 40. I KNEW IT WAS HERE WHEN I MOVED HERE. I KNOW WHAT AIRPORTS DO. I RESPECT THAT CITIZENS HAVE A RIGHT AND I WAS A CITIZEN AND WILL BE AGAIN HAVE A RIGHT TO WEIGH IN ON WHAT THESE THINGS ARE. BUT THIS IS A MULTI $100 MILLION ASSET. THAT THIS CITY OWNS. EVERYONE UP.

HERE IS A FIDUCIARY OF THE TAXPAYERS AND THE VOTERS OF THIS CITY. AS FIDUCIARY. WE HAVE TO DO WHAT'S IN THE BEST INTERESTS OF THE CITY. THAT'S ALL WE'RE TRYING TO DO. PEOPLE CAN DISAGREE WITH THAT, AND THEY WILL. AND THEY ARE, BUT ULTIMATELY THAT'S OUR JOB IS TO DO THE BEST WE CAN, WITH THE INFORMATION THAT WE HAVE. AND BE AS TRANSPARENT AS WE CAN ABOUT IT, BUT AS WE'RE GOING TO SEE FOR MR SHELTON'S 44 SLIDES. THE AIRPORTS COMPLICATED ALL AIRPORTS ARE COMPLICATED. THANK YOU, MR MAYOR. I WAS GONNA WAIT TILL THE END AND I WILL FOR WELCOME MY COMMENTS. BUT WHEN I HEAR THINGS LIKE CORRUPTION AND ALL THAT IT'S THAT'S A THAT'S A LAZY, RECKLESS APPROACH EVER BECAUSE IF YOU BELIEVE THIS CORRUPTION THAT'S COMING UPON YOU TO IDENTIFY IT AND BRING IT TO LIGHT, BUT OTHERWISE IT'S JUST RECKLESS. IT'S DIVISIVE.

IT'S UM. HAVE ANOTHER WORD. ANOTHER ADJECTIVE, ROB REFRAIN FROM USING IT, BUT I WANT TO, UM AND TO SAY THAT JUST A COUPLE OF CORRECTIONS. THE VOTE AGAIN WAS NOT A VOTE ON THE AIRPORT WAS A VOTE ISSUED $200 MILLION IN GENERAL OBLIGATION DEBT. THAT'S WHAT DIDN'T PASS. NO ONE IS HERE. VOTING ON OTHER DEBT TO CIRCUMVENT $200 MILLION OF GENERAL OBLIGATION DEBT. UM IT'S A THERE WAS A COMMENT THAT IT WAS A UNANIMOUS VOTE ANNOUNCED MEANS EVERYBODY WASN'T A UNANIMOUS VOTE WAS FAR FROM UNANIMOUS VOTE. AND TO THE POINT ON SOME PEOPLE. I WILL AGREE ON THE ONE STATEMENT THAT WAS MADE THAT THAT VOTE WAS I THINK THE COMMENT WAS SOMEBODY BECAUSE THEY DIDN'T WANT THE DEBT SOMEBODY BECAUSE THEY DIDN'T WANT THE AIRPORT. TAKE THAT. I AGREE WITH THAT STATEMENT. I DON'T KNOW WHAT PERCENTAGE YOU MIGHT HAVE IN YOUR MIND. BUT I HAVE A PRETTY GOOD IDEA IN MY MIND. BASED ON THE HUNDREDS AND HUNDREDS OF PEOPLE I'VE SPOKEN TO AND IF I COUPLE THOSE THAT DIDN'T WANT THE DEBT, BUT WANT THE AIRPORT WITH THOSE THAT VOTED FOR THE DEBT, WHICH OBVIOUSLY WAS VOTING FOR THE AIRPORT. I WOULD. I WOULD SAY THE ACTUAL VOTE. THE VOTE INDICATED SOMETHING VERY DIFFERENT THAN NOT WANTING AN AIRPORT. UM BUT AGAIN, THOSE ARE DECISIONS THAT WE WILL MAKE UP HERE, BASED ON THE FACTS THAT WE HAVE AND THE INFORMATION THAT WE HAVE, AND WE UNDERSTAND THERE ARE A LOT OF PEOPLE OUT TALKING PURELY BASED ON EMOTION WITHOUT A TRUE UNDERSTANDING. IT'S IT HAPPENS OVER AND OVER AND OVER AGAIN. BUT HOPEFULLY TODAY EVERYONE WILL OPEN THEIR MINDS AND LISTEN TO THE PRESENTATION.

AND AT LEAST THEN IF YOU HAVE COMMENTS TO MAKE ABOUT THE AIRPORT. IT CAN BE ONE BORN IN KNOWLEDGE. OF THE AIRPORT. WHAT THE AIRPORT ACTUALLY DOES DO HOW DOES IT BENEFIT THE RESIDENTS? JUST ONE THING, SO I DO UNDERSTAND THE PERSPECTIVE THAT YOU KNOW, SEVERAL PEOPLE HAVE SPOKEN UP AGAINST THE AIRPORT AND DON'T UNDERSTAND WHY THERE IS STILL SUPPORT FOR THE AIRPORT . AND THIS IS ONE OF THOSE SESSIONS WHERE HOPEFULLY WE START TO CLOSE THE GAP IN UNDERSTANDING. I WOULD LOVE TO SEE INFORMATIONAL SESSIONS ABOUT THE AIRPORT ON A VERY REGULAR BASIS UNTIL THAT GAP IS CLOSED, SO HOPEFULLY THIS IS THE FIRST OF MANY TO COME, AND IT

[00:15:05]

[Lower 5 Plaza Update]

THERE HAS BEEN A RENDERING AND WHAT LOWER FIVE PLAZA LOOKS LIKE FOR A WHILE. IT'S ONE OF THE THINGS THAT WE TALKED ABOUT IN APRIL. THAT DESIGN IS GOING TO CHANGE AND THAT'S OKAY. NOW THAT WE HAVE A DIRECTION ON THE FRAMEWORK GOING UNDERNEATH THE ROAD. WE'RE GOING TO TAKE ANOTHER LOOK AT THAT DESIGN AND MAKE SURE IT'S MEETING THE NEEDS OF THE COUNCIL MEETING THE NEEDS OF THE PUBLIC SO COMPONENTS OF THE DESIGN WILL CHANGE OVER TIME TO MAKE SURE WE'RE GETTING THE BEST. PLAZA FOR MCKINNEY. THIS IS A LENGTHY PROCESS. GARY'S GOING TO GO INTO THE DETAILS ON THE SCHEDULE, BUT WITH OUR PARTNERSHIP WITH TECHSTAT AND THE FACT THAT THEY'RE TAKING COMPONENTS OF THIS WORK, FOLDING THEM INTO THEIR CORRIDOR WORK, IT MEANS THAT THE ACTUAL CONSTRUCTION OF THE PARK ISN'T GOING TO HAPPEN FOR A WHILE. IT'S WORTH KNOWING THAT WE CAN CERTAINLY LOOK AT IT, BUT KNOWING THAT TIMELINE IS REALLY IMPORTANT BECAUSE IT IS A LENGTHY PROCESS. BECAUSE OF THAT, BECAUSE OF THE TIMING. OUR COSTS ARE PROBABLY GOING TO GO UP. WE HAD PART COSTS OF $15 MILLION INFRASTRUCTURE COSTS OF $30 MILLION WHEN WE'RE LOOKING AT A PARK THAT MIGHT NOT BE CONSTRUCTED TILL 2028. IT IS LIKELY THAT THOSE COSTS ARE GOING TO CHANGE OVER TIME. AND WE'RE GONNA BE BACK IN FRONT OF COUNCIL. THIS IS APRIL WASN'T A ONE AND DOWN WHERE YOU GAVE US DIRECTION AND WE WENT AND BUILT A PARK TOMORROW. THAT'S NOT THE CASE. WE WILL BE BACK IN FRONT OF COUNCIL WITH AGREEMENTS UPDATES DISCUSSIONS, AND THAT BRINGS ME TO THE TO REGULAR ITEMS ON THE AGENDA TONIGHT. THEY ARE CONTRACTS FOR US TO ENGAGE WITH A CONSULTANT TO GET WORK THAT IS NEEDED FOR TEXT THAT TO TAKE THIS PROJECT TO THE NEXT LEVEL. WITH THAT, I'M GOING TO TURN OVER TO GARY GRAHAM. HE'S GOING TO GO INTO A LOT MORE DETAIL. AND THANKS TO ITEMS I COUNT THREE ITEMS ON THE AGENDA. ONE IS THE BUDGET RELATED TO THAT FUNDING, SO YOU ARE ABSOLUTELY CORRECT. THREE ITEMS, TWO CONTRACTS. ONE IS GETTING THE MONEY TOGETHER. ONE THING I WANT TO NOTE WITH THAT THIS WILL BE ESSENTIALLY THE FIRST LOCAL DOLLARS INTO THIS EFFORT. ALL OF THE WORK WE'VE DONE TO DATE ON THE FEASIBILITY STUDY, ETCETERA.

WE'VE DONE WITH SUPPORT FROM THE COG AND WE THINK WE CAN GET SUPPORT FROM THE COG AND PART OF

[00:20:06]

THE INFRASTRUCTURE COSTS 25 TO $30 MILLION, WHICH THE CARD HAS COMMITTED TO HELP FUND THE PARK.

COST IS THAT $15 MILLION COST. IN YOUR OPERATING MAINTENANCE COSTS TWO AND $2.5 MILLION AGAIN. TODAY'S DOLLARS. BOTH OF THOSE CAPITAL. EIGHT ANNUAL COSTS ARE GOING TO GO UP ON THE TIME THEY'RE ACTUALLY SPENT. SO, UM CONSTRUCTION OF THE PARK OR THE INFRASTRUCTURE RELATED TO PARK, WHICH WOULD HAPPEN FIRST. THAT PROBABLY HAPPENS IN 27, SO WE'LL PROBABLY SEE AN INCREASE.

THAT'S WHY WE BUILT THAT 20 TO 2025 TO $30 MILLION IN WITH A COG. WE'RE HOPING WE'VE GOT ENOUGH IN THERE FOR INFLATION. TIME WILL TELL ON HOW MUCH INFLATION IS GOING TO PART IMPACT THE PROJECT. THE PARK COST $15 MILLION. THAT'S TODAY'S DOLLARS. WE HAVE NOT RUN THE INFLATION WE'RE NOW INSPECTING 2028 YOU KNOW OUR BEST GUESS AT THIS TIME, AND I'LL SHOW YOU THE SCHEDULE AND WHEN THAT TO GO TO CONSTRUCTION, NOT OPERATIONAL TO 2030. SO WE'RE LOOKING SEVEN YEARS FROM NOW, UM WE ALSO DON'T KNOW EXACTLY HOW IT CAN BE PROGRAMMED HOW IT'S GOING TO BE USED ALL THE AMENITIES GOING INTO IT THAT COULD INFLUENCE THAT NUMBER AS WELL. HERE YOU HAVE A QUICK QUESTION FOR YOU, SIR. YOU TALKED ABOUT THE 2 TO 2.5. FROM WHAT I UNDERSTAND, THAT IS TAKING A GUESSTIMATE ON THE TYPE OF PROGRAMMING AND WHATNOT. THAT'S NOT JUST MAINTAINING THE PARK THAT IS PROGRAMMING AND CREATING A COMMUNITY. CENTER IF YOU WILL CORRECT ALSO REGULAR BASIS HAVING SO I THINK IT'S A LITTLE DECEIVING WHEN YOU WHEN WE USE THE WORDS MAINTENANCE. LOT OF PEOPLE THINK THAT WOW, THAT'S THAT'S THAT'S THAT'S A LOT TO MAINTAIN. MAINTENANCE OF THIS PARK IS THE LEAST OF THAT NUMBER . IT'S THE OPERATIONS OF PROGRAMMING. SO YEAH, THAT'S WHAT WE TRIED TO ALLUDE TO THAT WITH THE FOOTNOTE. WE INCLUDE CITY LABOR FOR PARK MAINTENANCE AND REPLACEMENT BUT ALSO PROGRAMMING SECURITY AND TUNNEL BRIDGE MAINTENANCE AS WELL. YEAH SO SOME BIG ELEMENTS ASSOCIATED WE HAVE SOMETHING THAT TO COMPARE THAT TO LIKE OTHER PARKS IN THE CITY, SO WE ASKED, LIKE, OR WELL, WE ASKED OUR CONSULTANT TEAM THAT WHAT WHAT? WHAT IS THE NUMBER WE COULD EXPECT, SO THEY WORKED WITH THE STAR OVER IN FRISCO AND CLYDE WARREN DOWN IN DALLAS TO GET IDEA OF WHAT THOSE PARKS ARE DOING, AND BECAUSE THEY'RE A LITTLE HIGHER LEVEL THAN WHAT ARE OTHER PARKS ARE IN COST OF THE PROGRAMMING THE OTHER AMENITIES ASSOCIATED WITH IT, AND THAT'S WHERE THEY DERIVED THAT NUMBER FROM OKAY? MR GRAHAM BUDGET INSECURITY ON ALL OF OUR OTHER PARKS. UM I'D HAVE TO ASK MR MULLINS, IF WHAT THAT IS OR IF THAT'S JUST GENERAL PD COST, YOU KNOW, KIND OF DO PATROLLING OF OUR SECURITY. UM DO YOU WANT TO HAVE HIM STEP UP? IF YOU KNOW. NO, SIR. WE DO NOT HAVE A LINE ITEM FOR SECURITY AND OTHER PARTS. WE HAVE DEPLOYED SECURITY, VARIOUS LOCATIONS DEPENDING ON WHAT'S GOING ON. OF COURSE, FOR SOME SPECIAL EVENTS WILL GET SOME SECURITY. WE'VE HAD SOME AT APEX BECAUSE OF SOME ISSUES WE HAD IN THE GYMNASIUM WITH BEHAVIOR OTHER THAN THAT, NO, WE DO NOT HAVE REGULAR SECURITY IN ANY OF OUR PARKS. THANK YOU, RYAN. ANY OTHER QUESTIONS FOR MOVE ON FROM COSTS WILL GIVE YOU A COUPLE OF UPDATES AND OUR CONVERSATIONS WITH TEXT DOT THE CURRENT HIGHWAY FIVE PROJECT FROM COUNTRY CLUB DOWN RIGHT WITH OUR BORDER WITH FAIRVIEW, ALL THE WAY NORTH OF THREE EIGHTIES OF POWERHOUSE FULLY FUNDED. GREAT NEWS FOR US TECH START BECAUSE OF TRYING TO INTEGRATE THE PLAZA WORK INTO THE PROJECT. THEY ARE NOW SUGGESTING THAT WE SPLIT THIS PROJECT INTO TWO PHASES. THE SOUTHERN PORTION FROM BASICALLY MAKING WHICH IS JUST NORTH OF TENNESSEE. SOUTH WOULD BE ONE PHASE AND WE EXPECT THAT TO GO TO CONSTRUCTION IN 2025 RIGHT NOW. THE TENTATIVE DATES APRIL, UM AND THEN THE PIECE NORTH THAT WOULD INCLUDE THE PLAZA FROM MACON NORTH TO NORTH OF 380 WOULD BE IN MAYBE THE SUMMER OF 2026 WHEN THAT WOULD GO TO CONSTRUCTION. UM TEXT ART IS GOING TO DESIGN THE BRIDGE ASSOCIATED WITH THE PLAZA AND CONSTRUCTIVE FOR US AS PART OF THEIR PROJECT. UM AND THEN YOU KNOW, THROUGH A LOT OF OUR CONVERSATIONS ALONG THE ALONG THE PLAZA AND WITH THE DECK PARK ORIGINALLY IS THERE ARE OTHER

[00:25:04]

WE'RE GOING TO DO SOME PEDESTRIAN COUNTS. WE'RE LOOKING FOR WITH WORKING WITH A VENDOR TO HELP US IDENTIFY FOR A LONG PERIOD OF TIME, NOT JUST ONE WEEKEND, BUT AT LEAST A WEEK, MAYBE MULTIPLE WEEKS. TRACKING FOR PEDESTRIANS ARE CROSSING UM, YOU KNOW, INCLUDES WEEKENDS NIGHTS, OTHER TIMES WHERE YOU MAY HAVE DIFFERENT CROSSING PATTERNS THAN WE NORMALLY SEE IN OUR DAY TO DAY ACTIVITIES AS CITY STAFF, SO WE'RE GONNA WORK VERY HARD TO GET SOME VERY GOOD, ACCURATE ACCOUNT SO WE CAN WE CAN DEPLOY THOSE MEASURES AT THE CORRECT LOCATIONS. SO TEXT THAT'S OPENING THAT AND SO WE'RE ENCOURAGED THAT THAT COULD BE INCLUDED IN THE CURRENT PROJECT.

I WANT TO HIGHLIGHT PARTNERSHIPS. KIM MENTIONED IT, UM THE CARD NORTHWESTERN CENTRAL TEXAS COUNCIL GOVERNMENTS TEXT DOT THEY HAVE BEEN GREAT PARTNERS WITH US. THEY HAVE ALL WORKED VERY HARD TO HELP US MAKE THIS PROJECT A REALITY, AND I WANT TO THANK THEM FOR THEIR EFFORTS THAT THEY HAVE GOTTEN TO TODAY TO PUT US AT THIS STAGE OF THE PROJECT. UM AS WE MENTIONED PREVIOUSLY, THE COGS COMMITTED TO $30 MILLION TO HELP FUND THE INFRASTRUCTURE. SOME OF THAT WILL BE CITY LED WORK. SOME OF THAT WE'VE TEXT OUTLET WORK, BUT WE'LL SPLIT THAT MONEY AND TO GET THE INFRASTRUCTURE PAID FOR. WE DON'T KNOW THIS FUNDING SOURCE RIGHT NOW. WELL, UM WE THINK, UM, ON THE CURRENT PATH THAT THAT MONEY WOULD BE AVAILABLE FOR THE CITY TO USE FOR TO ADVANCE THE PROJECT IN LATE 2024. CENTRAL NORTH CENTRAL TEXAS COUNCIL GOVERNMENTS APPLIED FOR A RECONNECTING COMMUNITIES AND NEIGHBORHOODS GRANT THAT WAS SUBMITTED IN SEPTEMBER. WE SHOULD KNOW AN AWARD DATE AND, UM, THE SPRING APRIL TIMEFRAME. SO ONCE WE KNOW THAT UM, THE COG HAS COMMITTED $15 MILLION IN OTHER FEDERAL FUNDS TO THE PROJECT, AND NOW THEY'RE APPLYING THROUGH THIS GRANT PROCESS. ANOTHER 15 MILLION. THAT'S WHERE THAT 30 MILLION IF WE'RE SUCCESSFUL WITH THIS GRANT, WE KNOW WHERE THE MONEY IS COMING FROM. IF THEY'RE NOT THE CONGRESS COMMITTEE TO FINDING ANOTHER SOURCE, THERE'S NOT A ONE AND DONE IF WE DON'T GET THIS SO WELL, MCKINNEY ARE TOUGH LUCK. NO, THIS IS JUST THE MEANS THEY'RE LOOKING FORWARD TO HELP FUND THE PROGRAM. TECH START, UM, MENTIONED THEY'RE GONNA DESIGNED AND CONSTRUCTED BRIDGE. THEY'RE GOING TO DESIGN THE BRIDGE WITH STATE DOLLARS. SO THAT HELPS STRETCH OUR $30 MILLION JUST A LITTLE BIT MORE. IT'S NOT GOING TO BE AN EASY BRIDGE DESIGN IS GOING TO BE KIND OF AN ORNATE, SO IT'S GOING TO BE A LITTLE BIT HIGHER DESIGN COST TECH STARTS COMMITTED TO FUNDING THAT THEMSELVES GREAT NEWS FOR US CONSTRUCTION DOLLARS FOR THE BRIDGE WOULD COME OUT OF THAT. 30 MILLION, THOUGH. UM TEXT THAT IS ALSO COMMITTED TO LEADING THE ENVIRONMENTAL DOCUMENTATION PROCESS. ANYTIME YOU USE FEDERAL FUNDS ON A PROJECT, YOU HAVE TO HAVE AN ENVIRONMENTAL DOCUMENT. TEXT THAT'S STILL WORKING DETERMINE WHAT THAT PROCESS WILL LOOK LIKE. WHAT EXACTLY EXACT FORMAT THAT HAS TO BE? YOU KNOW, WE HAD THE U. S 380 ENVIRONMENTAL DOCUMENT THAT WAS AN ENVIRONMENTAL IMPACT STATEMENT. THE HIGHEST LEVEL, THERE'S SOME LOWER LEVELS THAT THEY COULD THEY COULD CHOOSE IN, DEPENDING ON WHAT THEY FEEL LIKE WITH THE DIFFERENT RIGHT AWAY ACQUISITIONS. LET US KNOW WHAT THAT PROCESS IS GOING TO LEAD THAT. TEXT AND IT'S ALSO AGREED TO ACQUIRE ALL THE RIGHT AWAY AND DO THE BUSINESS RELOCATIONS FOR THE ACQUIRED BUSINESSES, SO THEY WOULD ALSO DO THE DEMOLITION. SO WHEN THEY'RE DONE WITH THE PROCESS, THEY WOULD TURN OVER A BLANK SLATE FOR US READY TO DO THE PLAZA CONSTRUCTION. THE CITY'S PART IN THIS PARTNERSHIP. WE NEED A DESIGN 30% BRIDGE LAYOUT. THAT IS ONE OF THE REASONS WHY WE NEED WE HAVE THESE CONTRACTS ON THE IS THE REASON WE HAVE THE CONTRACT ON THE AGENDA TONIGHT, TEXT DOT THEY'RE GOING TO TURN WHAT WE PREPARE OVER TO THEIR CONSULTANT TO DESIGN THEY NEED SOME MORE THAN A PRETTY PICTURE FOR THEIR CONSULTANT TO WORK OFF, SO WE WILL BE PUTTING TOGETHER A 30% SCHEMATIC FOR THEM TO HAND OVER THE TEXT DOT AND THEN TEXT DOT HANDS THAT OVER THERE CONSULTANT HAS THEM DESIGNED THE REST. TO DO THAT 30% DESIGN. WE HAVE TO LOOK AT THE DRAINAGE SYSTEM. WE HAVE TO LOOK AT THE WHAT KIND OF LANDSCAPING COULD BE ON THIS ON THIS BRIDGE THAT WE MAKE SURE WE HAVE THE BRIDGE DECK DESIGNED PROPERLY. HOW HOW MUCH DEPTH IS GOING TO BE FROM THE BOTTOM OF THE BRIDGE DOWN TO THE PLAZA? ALL THOSE THINGD WE'RE NOT GOINO DESIGN AND PUT TOGETHER A FULL NEW CONCEPT FOR THE PARK. WE'RE GOING TO GO THROUGH THE CRITICAL ELEMENTS, THOUGH, AND SAY OKAY, HERE ARE THOSE KEY THINGS THAT DRIVE THE ULTIMATE DEPTH OF THE PARK, WHICH WOULD DRIVE THE DEBT RATING SYSTEM THAT DRIVES THE DESIGN OF THE BRIDGE THAT FOUND ITS FOUNDATIONS THE DEPTHS OF ALL THOSE THINGS ASSOCIATED WITH THE BRIDGE. SO THIS IS A, UH WORK THAT WE HAVE TO DO TO KEEP TEXT ON THEIR SCHEDULE FOR THE SCHEDULE I MENTIONED A FEW MOMENTS AGO. YES SIR. WHEN YOU USE THE TERM DEPTH, YOU'RE TALKING DIMENSIONALLY. YES, SIR. THANK YOU. UM. I MENTIONED THE DRAINAGE SYSTEM. WE'RE GOING TO

[00:30:07]

UP HERE IN THE GRAY AREA, UM, TRYING TO GET US TO THAT 30% DESIGN. WE'VE GOT ABOUT SIX MONTHS LESS THAN THAT NOW, ABOUT FOUR MONTHS TO GET A DESIGN TO TEXT THAT, SO WE'VE GOT THE CONSULTANT TEED UP, READY TO GO AND HOPEFULLY WE'LL BE ABLE TO GIVE THEM A GO AHEAD WITH THE CONSTRUCTION CONTRACT OR THE DESIGN CONTRACTS TONIGHT TO MOVE THEM FORWARD TO MEET TECHSTAT SCHEDULE. UM. THERE ARE A LOT OF DIFFERENT STEPS WILL BE BACK HERE IN FRONT OF YOU, UM WE PROBABLY DON'T SEE MORE ACTION UNTIL THE SPRING OR WHEN, WHEN, WHEN TEXT DOT OR FINDS OUT ABOUT THEIR AGREEMENT. UM AND THEN, DEPENDING ON WHAT ARE NOT THE AGREEMENT, THE SELECTION PROCESS FOR THE GRANT AWARD ONCE WE KNOW THAT THAT WILL KIND OF LEAD INTO THE NEXT STEPS. IF THEY'RE NOT SUCCESSFUL, THAT KIND OF WOBBLE PATH, CHICAGO LEAD US DOWN. THE ENVIRONMENTAL REVIEW SHOW THAT STARTING IN THE SPRING, THAT'S GONNA BE DEPENDENT ON FUNDING THE TECH STOCKS USING THAT $30 MILLION TO HELP FUND THEIR INITIATIVES. SO IF THERE'S A DELAY IN THAT FUNDING THAT MAY SLIDE THAT OUT A LITTLE BIT SO AGAIN, THIS IS THE BEST CASE SCENARIO, WE THINK, UM, BUT THERE'S A LOT OF STEPS AND A LOT OF MOVING PARTS THAT WE'RE WORKING THROUGH. SO WE MENTIONED THIS A COUPLE OF TIMES. UM, WE DO HAVE TO PROFESSIONAL SERVICE CONTRACTS ON THE AGENDA TONIGHT FOR RECONSIDERATION. I'LL TALK MORE ABOUT THEM IN A SECOND, UM OUR NEXT STEPS IS GET WORKING ON THAT SCHEMATIC DESIGN, SO SOME HIGH LEVEL PARK DECISIONS THAT THAT'S WHY WE HAVE THE PARK CONTRACT AND THEN THE SCHEMATIC BRIDGE LAYOUT AND THEN YOU KNOW, IN 2024. WE HOPE TO SEE THAT ENVIRONMENTAL DOCUMENTATION AND PUBLIC ENGAGEMENT PROCESS TEXT, NOT STANDARD PUBLIC ENGAGEMENT PROCESS PRETTY DRY, PRETTY CUT AND DRY, AND WE THINK TO BE A SUCCESSFUL PUBLIC ENGAGEMENT PROCESS. THE CITY IS GOING TO HAVE TO HELP SUPPLEMENT AND SUPPORT THAT SO WE HAVE ELEMENTS IN OUR DESIGN CONTRACTS TODAY THAT WE HAVE FOR YOUR CONSIDERATION TO HELP SUPPORT THAT EFFORT. UM THOSE PROFESSIONAL SERVICES CONTRACTS. WE HAVE ONE FOR THE INFRASTRUCTURE IMPROVEMENTS IS 435,000 AND NOT TO EXCEED 475,000. I DID HEAR FROM THE KOGI. TODAY THEY ARE WILLING TO ENTERTAIN THE SAME PARTNERSHIP THEY HAVE UNDER THAT WE HAD ON THE FIRST PHASE OF THE PROJECT WHERE WE'RE SPENDING LOCAL DOLLARS ON THE CONTRACT SO WE CAN MOVE IT FORWARD WITHOUT AN AGREEMENT WITH TECH STOCKS OR THE KOGI. COG IS GOING TO MAKE US WHOLE BY THEY'RE GOING TO OFFSET SOME EXPENSES WE HAVE ON ANOTHER FEDERALLY FUNDED PROJECT , SO WE WILL MOVE LOCAL DOLLARS OFF THAT OTHER PROJECT AND USE THAT MONEY HERE AND THEN COG WILL OFFSET THE DOLLARS THEY WOULD HAVE SPENT HERE ON THAT OTHER PROJECT, SO WE'RE STILL NEUTRAL ON THE INFRASTRUCTURE COSTS. UH UM, THAT'S GOING TO GET INTO THE BRIDGE LAYOUT, THE DRAINAGE DESIGN AND THE INITIAL GRADING TO MAKE SURE ALL THESE DIMENSIONAL ITEMS WORK FOR THAT ORIGINALLY OUT. THE PARK IMPROVEMENTS. THAT'S $225,000 CONTRACT WITH THE NOT TO EXCEED $250,000. THAT IS, AS KIM KIM MENTIONED LOCAL FUNDS INTO THE PROJECT, AND THESE ARE THOSE HIGH LEVEL PARK CONCEPTS TO MAKE SURE WHAT WE ARE PUTTING TOGETHER IN THE FOOTPRINT OF THE BRIDGE THAT WE'RE GIVING WORK WITH THAT ULTIMATE CONCEPT, NOT DESIGNING NOT. WE'RE NOT GOING INTO A VACUUM WITHOUT ANY PUBLIC INPUT TO PUT THIS PLAZA CONCEPT TOGETHER. THIS IS THESE ARE HIGH LEVEL GUT CHECKS TO MAKE SURE WE WORK THAT WE DO ON THE INFRASTRUCTURE MAKES SENSE, AND IT'S NOT WASTED. AGAIN. HERE SOME OF THOSE EARLY CONCEPTS THAT TALK ABOUT WHAT THIS COULD LOOK LIKE. THE BIG THING IS THE FOOTPRINT. THE SWEEPING THIS OF THE BRIDGE THOSE CURVES, MAKING SURE WE GIVE ENOUGH DETAIL TO TEXT THAT TO DESIGN THOSE. THAT'S THE EFFORT. UM AND, YOU KNOW, MAKING SURE THE FOOTPRINT THAT WE PUT TOGETHER WE'LL INCORPORATE THE IDEAS THAT WE ARE. OR CONTEMPLATING FOR THE PARK. AND THEN THE DEPTH CONCEPT , MAKING SURE WE GET THE RIGHT DEPTH. THERE WE SHOWED 12 FT. ON THE ORIGINAL CONCEPT. WE NEED TO VERIFY ALL THOSE DIFFERENT

[00:35:02]

SO I THINK THE CHALLENGE THAT WE HAVE IS THERE'S NOT MUCH DISTANCE BETWEEN VIRGINIA AND LOUISIANA. SO IF WE LIKE THIS GRAPHIC SHOWS LIKE A LITTLE STRIPED ISLAND THERE HEADING SOUTH BONG THAT LEFT TURN LANE TO TURN LEFT AT LOUISIANA. OUT THERE TODAY. WE DON'T HAVE THAT.

IT'S JUST ONE LANE EACH DIRECTION ENTIRE WAY SO WE CAN CERTAINLY EXPLORE IT. BUT IF WE CAN'T MAKE THAT HAPPEN HIS COUNSEL, OKAY WITH REMOVING THAT MEDIAN. I THINK IF IT'S REQUIRED FOR THE MOBILITY AND WITH THE OTHER HAS A NEGATIVE IMPACT ON DOWNTOWN OR BUT MAIN STREET, PLEASE. IT WOULD BE A NEGATIVE IMPACT. I WOULD BE OKAY WITH IT. I'D BE OKAY WITH IT CERTAINLY LOVE THE AESTHETIC OF IT, BUT UNDERSTAND. YOU'RE ASKING IF WE'RE OKAY WITH KEEPING IT THE WAY IT IS. ELIMINATING WHOEVER DREW THAT. YEAH, KEEPING IT AWAY AWAY IS TODAY. ELIMINATING THE ONE ON MY RIGHT? YES, SIR. I'M IN FAVOR OF KEEPING THE TRAFFIC PATTERN THE WAY IT IS TODAY, OKAY? THANK YOU, UM KEY TAKEAWAYS, JUST REITERATING WHAT KIM MENTIONED TO BEGIN WITH.

THIS IS A PARTNERSHIP BETWEEN THE CITY TEXT OUT IN THE COG. THEY HAVE BEEN WONDERFUL PARTNERS. THANK YOU AGAIN TO EACH OF THOSE ENTITIES FOR ALL THE HARD WORK THEY HAVE PUT IN TO HELP US MAKE PROJECT GETS WHERE IT'S AT TODAY. CONCEPTUAL DESIGNS WHAT YOU'VE SEEN TODAY WE WILL BE GOING THROUGH MORE FORMAL PROCESS. WE'RE GOING TO HAVE TO DO THIS IN INCREMENTS STAGES, THOUGH. WE'RE GOING TO A LITTLE BIT NOW WE'RE GOING TO DO SOME DURING THE PUBLIC ENGAGEMENT PROCESS DURING THE ENVIRONMENTAL DOCUMENT THAT TEXT DOT DOES, AND THEN WE'RE GONNA HAVE A FORMAL DESIGN CONTRACT WHEN IT GETS CLOSER TO THAT TIME FOR CONSTRUCTION. YOU KNOW WHAT WE DEBATED WAS WE COULD DO A LOT OF WORK NOW. BUT BY 2027. THERE MAY BE SOME DIFFERENT TRENDS THAT WE WANT TO TRY TO HIT THE MATCH. AND, YOU KNOW, AS WE IMAGINE WHAT THIS PARK WILL LOOK LIKE, SO WE WANT TO DELAY THAT A LITTLE BIT LENGTHY PROCESS. OUR GUTS SCHEDULE THAT WE PUT TOGETHER DOESN'T SHOW AN OPERATIONAL PARK TILL 2030. SO WE ASKED FOR YOUR PATIENTS ON THIS PART. COSTS ARE LIKELY GOING TO ESCALATE, ESPECIALLY THE PART PORTION THAT WE ARE RESPONSIBLE FOR. AND THEN WE'RE GONNA HAVE MULTIPLE TIMES TO SEE KIM AND I AND THE REST OF THE TEAM WITH OTHER ELEMENTS OF THIS PROJECT. ALONG THE WAY. WE'RE HAPPY TO TAKE ANY QUESTION ANY

[00:40:03]

UH UM IF THEY GET 80 100 CARS IN AN HOUR, THEY'LL USE 80 PERCENTILE SPEED OF THAT, OR AS MANY VEHICLES AS THEY GET IN THAT HOUR, AND WE'LL USE THAT AS THE BASIS. OKAY 85TH PERCENTILE SPEED WAS 40 MILES AN HOUR. WE THINK THAT'S WHAT WE SHOULD SIGN THIS AT UM ONCE IT'S OUR ROAD, WE WERE USING THE FIFTH PERCENTILE TO BE A FACTOR IN DECIDING THAT, BUT WE LOSE ROADSIDE CONDITION DEVELOPMENT CONDITION. OTHER OTHER FACTORS THAT ARE COMMON PRACTICE EVEN LISTED IN AND SOME OF THE DESIGN MANUALS THAT YOU SHOULD USE TO DECIDE SPEED LIMIT BUT WILL BE OUR DECISION. WE DON'T HAVE TO GO THROUGH TEXT DOWN AT ALL. OKAY? I'VE GOT ONE OTHER QUESTION. GARY. FORGIVE ME, UM WHEN WE HAD TALKED ABOUT THIS LAST TIME, WHICH WAS A NUMBER OF MONTHS AGO. I WANTED TO PROCEED, BUT I WAS HOPING TO SEE WITH SOME DESIGN FOR THIS. THAT WOULD SHOW ME HOW IT MITIGATED VAGRANCY. ONE OF THE BIG CONCERNS FROM THE CITIZENS IS IF WE PUT THIS AND THERE'S A ROOF OVER IT THEN IT'S GOING TO ATTRACT VAGRANCY, AND I WAS HOPING TO SEE SOMETHING SOME KIND OF DESIGN THAT SAYS, WELL, IT DOESN'T BECAUSE OF THIS DESIGN. ANYTHING THERE, SO WE DON'T HAVE A CONTRACT TO FURTHER DESIGN SO WE DIDN'T HAVE ANY MORE MONEY TO WORK WITH CONSULTANT IN ADVANCE ANYTHING ELSE AND APOLOGIZE IF I MISSED OUT ON DEVELOPING A CONCEPT. WE HAVE TALKED A LOT ABOUT THAT AS A DESIGN TEAM WITH OUR CONSULTANT IN OUR INTERNAL TEAM. WHAT ARE WE GOING TO DO ABOUT THAT? UM I THINK THERE ARE SOME PARK ELEMENTS THAT THEY THINK THEY CAN DO TO HELP, YOU KNOW, MINIMIZE PEOPLE USING BENCHES TO SLEEP ON AND THOSE TYPE OF THINGS BUT I THINK THE MOST EFFECTIVE ELEMENT WILL BE THAT SECURITY ELEMENT THAT WE'VE TALKED ABOUT PROGRAMMING IN THE OPERATION AND MAINTENANCE OF THE OF THE OF THE FACILITY. I THINK THAT PRESENCE OF SECURITY IS GOING TO BE THE BIGGEST DETERRENT. I THINK WE CAN ALSO PUT SOME TECHNOLOGY DOWN THERE WITH CAMERAS AND WHATNOT THAT ALLOWS PD TO HAVE MORE ACCESS AND MORE EYES IN THERE TO COMPLEMENT THE SECURITY, BUT I THINK THAT'S GOING TO BE THE ULTIMATE BEST DETERRENT USE OF IT AND SECURITY WHEN IT'S NOT BEING USED. THANK YOU. LIGHTS YES, THANK YOU. WHOEVER THE CROWD OUT HERE GIVING ME ANOTHER INPUT LIGHTS, WE WILL HAVE A LOT OF LIGHTING OUT THERE. EVEN DURING THE DAY, SO CAN YOU GO TO THE TIMELINE PAGE? SO. LET ME MAKE SURE I UNDERSTAND FROM A SHARED COST PERSPECTIVE. TECH

[00:45:06]

THEY WOULD MAKE US A SUB RECIPIENT AND THEN ALLOCATE THAT MONEY TO US THROUGH THEM. SO FROM THE STANDPOINT OF TIMING OF THOSE COSTS. THERE'S PRIMARILY LINEAR. IN THAT. TEXTILE WOULD WOULD DO PROPERTY ACQUISITION TEXT THAT WOULD DO THE BRIDGE BUILDING AND THEN ESSENTIALLY HAND US OVER. UM WHAT THEY'RE WHAT THEY COMPLETED AND THEN WE DO THE REST OF IT. THAT'S ESSENTIALLY ARE WHAT WE GET. IN THE REMAINDER OF THAT $30 MILLION IS WHAT WE GET, EVEN IF THEY'VE SEEN ESCALATION AND COST. OR SOME SORT OF. CHANGE IN SCOPE OR, YOU KNOW CONTINGENCY THAT THEY HAVE ENCOUNTERED. SO THAT IS IN ESSENCE, CORRECT. THEY HAVE BEEN GREAT SINCE SUCH GREAT PARTNERS AND I THINK WE'LL CONTINUE TO BE ALONG THE PROJECT. I CAN'T GUARANTEE THIS.

BUT IF WE GET TO 20, YOU KNOW, UH OUR SCHEDULE HERE SHOWS THAT WE WOULD WE WOULD GO TO CONSTRUCTION FOR OUR PORTION OF THE PROJECT AND LATE 27 EARLY 28 THAT GENERAL TIMEFRAME THAT ORANGE BAR. DOWN HERE. IF WE GET TO APPORTION AND WE SEE THERE'S BEEN SO MANY COSTS ESCALATIONS, I THINK WITH OUR RELATIONSHIPS WITH THE COUNCIL OF GOVERNMENT, WE WOULD GO BACK AND SEE IF THERE'S AN OPPORTUNITY FOR THEM TO INCREASE THEIR FUNDING TO US ON THE PROJECT. IT'S STILL ACHIEVING A HUGE ENVIRONMENTAL JUSTICE OPPORTUNITY THAT THEY WANT TO MAXIMIZE THROUGHOUT THE REGION. YOU KNOW MICHAEL MORRIS, THE DIRECTOR OF NORTH CENTRAL TEXAS COUNCIL GOVERNMENTS, HE LOVES TO DO. PILOT PROJECTS SHOW HOW YOU CAN DO DIFFERENT THINGS. AND HE SEES THIS PROJECT IS ONE OF THOSE PROJECTS WHERE, YES, WE ARE RECONNECTING THE COMMUNITY THAT WAS SEVERED BY THE CONSTRUCTION OF WHAT WAS I, A STATE AND FEDERAL HIGHWAY AT ONE TIME, AND NOW IT'S TURNED BACK OVER TO LOCAL COMMUNITY. AND NOW WE'RE DOING SOMETHING TO BRING THAT COMMUNITY BACK TOGETHER. SO NO GUARANTEES THERE, BUT THAT IS ALWAYS AN OPPORTUNITY. IF WE GOT IN THAT SITUATION, WE WOULD CERTAINLY LOOK TO THAT AVENUE. SO WE BEAR THE. POTENTIAL OVERRUNS FOR INFLATION. FOR POTENTIAL JUST CONTINGENCY ITEMS THAT COME UP. BOTH ON TEXT OUTSIDE AND THEORETICALLY ON OUR SIDE WITH THE HOPE THAT CARGO WILL BAIL US OUT OF NECESSARY. YES SIR. AND THEN ALSO THOSE SAME PRICING PRESSURES ON THE PARK, WHICH IS FIVE YEARS AWAY AT BEST. YES, SIR. UM, THE. THE.

THE DIVIDING OF THE STATE HIGHWAY FIVE. UH UM, TIME AT THE TIMING OF THE CONTRACT WHERE YOU SAID IT'S IN TWO PHASES THAT BEGINS IN UM. APRIL 2525 AND THEN THE SECOND ONE BEGINS IN JUNE OF LOOKS LIKE SECOND QUARTER OF 26. DO WE KNOW WHAT THAT WOULD LOOK LIKE IF IT DIDN'T HAVE TO BE SPLIT. UM. THERE'S ALMOST TWO DIFFERENT TYPICAL SECTIONS. WE'VE GOT THE RECONSTRUCTION OF HIGHWAY FIVE THROUGH, YOU KNOW, THROUGH MCKINNEY, RIGHT? AND THEN WE GOT THAT SOUTHERN PORTION THAT'S REALLY BUILDING A FREEWAY. IT'S GOT AN INTERCHANGE AT THE SOUTHERN SECTION OF HIGHWAY FIVE, WHERE IT MEETS 399. AND THEN IT'S BUILDING THE FIRST PART OF THIS FOR 399 EXTENSION. THAT'S GOING TO HAPPEN. I WOULDN'T BE SURPRISED IF TEX DOT SPLIT THESE PROJECTS ANYWAY, TO HAVE TWO DIFFERENT CONTRACTORS OUT THERE. THE TIMING MIGHT BE SLIGHTLY DIFFERENT. BUT TECH STOCKS ALREADY AND I HAD AN EMAIL EARLIER TODAY, ACTUALLY FROM TECH START ASKING ABOUT THE STATUS OF OUR UTILITY RELOCATION PROJECT. YOU KNOW, WE HAVE TO CLEAR OUR UTILITIES AND, UM YOU KNOW, THEY'VE ALREADY KIND OF STARTED HITTING FOCUS ON THAT SOUTHERN SECTION FIRST, SO WE'RE TRYING TO GET ALL THOSE RIGHTS EASEMENTS AND ACQUISITIONS TOGETHER SO WE CAN GET THAT PROJECT LET OUR CONTRACTOR START ON THE SOUTHERN END AND MOVE

[00:50:01]

I SHOULD SAY AND STAGGERED CONSTRUCTION SCHEDULES. IT MAY NOT BE THAT MUCH OF A DELAY, BUT UM, I THINK THERE COULD BE SOME. AND FROM THE STANDPOINT OF THE 255,000 IS HMM. AGENDA ITEMS ARE OUT OF POCKET. ON THIS. DO YOU KNOW WHERE ELSE WE HAVE IDENTIFIED OUT OF POCKET DOLLARS FOR US ON ON THIS TIMELINE. UH SO WHERE ELSE ARE THEIR DECISION POINTS? UM. I THINK AT THE END OF THE WELL, WE WILL BE BRINGING BACK. UM ADDITIONAL DESIGN CONTRACTS IN 25 FOR THE INFRASTRUCTURE AND THE PARK AT THAT TIME. SO THE, UM INFRASTRUCTURE IS THAT PROJECT AND HERE'S THE PLAZA DESIGN WITH THIS PROJECT, SO WE'LL BE BACK IN FRONT OF THOSE WITH CONTRACTS AS WELL. UM JUST DESIGN WHICH YOU'RE TYPICALLY MILLION MILLION A HALF COULD BE A LITTLE BIT MORE THAN THAT. IT'S PRETTY COMPLEX PROJECT FOR THE INFRASTRUCTURE. WE'RE TALKING ABOUT A 2000 FT TUNNEL FROM HIGHWAY FIVE OUT TO ALL SETTLERS PARK AND WE'RE NOT SO THERE'S MAYBE A LITTLE BIT MORE THAN THAT. I HAVEN'T PUT DOLLARS THAT YET. THE PARK DESIGN. I'M NOT I DON'T KNOW WHAT THOSE TYPICALLY GO FOR, BUT THAT BALLPARK SHARE. UM WE ALSO PROBABLY KNOW AT THE END OF THE ENVIRONMENTAL PROCESS. UM IF THERE ARE ANY RED FLAGS OR ANYTHING ELSE, THAT'S TEXT THAT GOES TO THAT PROCESS. THERE MAY BE SOME DECISION POINTS THERE. BUT THE BULK OF IT WOULD COME IN THE SECOND HALF OF 2027 WHERE GREG SEPARATION BEGINS FOR US. YES. YEAH.

QUESTIONS. LIKE TO MAKE A COMMENT IF I MAY. FIRST I WANT TO SAY THANK YOU AND THANK MS FLAM FOR THE GOOD WORK AND PRESENTING THIS TO US AND MOVING THIS PROJECT FORWARD. I APPRECIATE ALL THE GOOD WORK THAT ALL OF YOU AND ALL OF YOUR STAFF HAS DONE ON THIS. UM, I VOTED AGAINST OPTION NUMBER TWO. WHICH IS WHAT I CONSIDER THIS PART BECAUSE I HAVE CONCERNS ABOUT THE SUCCESS OF THE PARK FOR FUTURE GENERATIONS HAVE NO DOUBTS ABOUT WAR. ANY CONCERNS ABOUT YOUR SUCCESS IN SEEING THIS CONSTRUCTION PROJECT THROUGH TO ITS COMPLETION. UH WHEN MARY FULLER FIRST PRESENTED US WITH THIS CONCEPT AND IDEA IT WAS TO SUBMERGED HIGHWAY FIVE AND NOT SUMMERS'S THE PARK AND SIMPLY BECAUSE SOMETHING IS EXPENSIVE OR HARD IS NOT AN EXCUSE NOT TO DO IT RIGHT. AND I THINK THE CITIZENS OF MCKINNEY DESERVE THE VERY BEST AND THAT'S WHY I VOTED AGAINST OPTION NUMBER TWO. IT WAS THE LESS EXPENSIVE OPTION. HOWEVER I AM QUITE COMFORTABLE WITH PEOPLE NOT FOLLOWING MY ADVICE, AND I BELIEVE MY BROTHERS AND SISTERS HERE ON THIS COUNCIL DID NOT DO SO IN THAT INSTANCE. I WILL SUPPORT YOUR MOTIONS THIS EVENING TO FUND THE DESIGN AND CONSTRUCTION OF THIS PARK. BECAUSE IT'S THE WILL OF THE ENTIRE COUNCIL. BUT I STILL MAINTAIN IT IS NOT THE APPROPRIATE DESIGN WE SHOULD HAVE UNDERTAKEN BUT TO SUPPORT. THESE FOLKS WILL NOT PULL OUT THOSE ITEMS DOWN AND I WILL VOTE FAVORABLY FOR THEM. THANK YOU. AND I MAKE THOSE COMMENTS BECAUSE THESE ITEMS ARE ON THE CONSENT AGENDA, AND I DID NOT WANT TO BRING YOU BACK UP PERIOD TO MAKE THAT POINT AT A LATER TIME. I APPRECIATE THAT. THANK YOU. AND I GUESS PEOPLE BEFORE. YES, I DO HAVE A QUESTION ABOUT THE 225,000. SINCE THE FINAL DESIGN WORK. IT'S SO FAR AWAY. IT LOOKS LIKE YOU PRESENTED SOME CONCEPTUAL DESIGNS ALREADY WITH OTHER WHAT ARE WE GONNA GET FROM THIS NEW CONCEPTUAL LAYOUTS? ARE WE GOING TO SEE SOMETHING TOTALLY DIFFERENT OR JUST WELL, SO DURING DURING THIS PROCESS.

UM. WE ARE BRAINSTORMING TO MAKE SURE THERE AREN'T ANY FEATURES THAT WOULD CHANGE THE ULTIMATE DEPTH OF THE PARK BECAUSE THAT WOULD INFLUENCE THE BRIDGE DESIGN. OKAY AND THEN ALSO, WE'RE GOING TO START PUTTING TOGETHER SOME CONCEPTS THAT WOULD SUPPORT DURING THE PUBLIC ENGAGEMENT PROCESS THAT TEXT IS GOING TO BE DOING. WE'RE GONNA PUT TOGETHER KIND OF A PORTFOLIO OF OPTIONS. TECH START SAYING, HEY, WE'RE GOING TO BE TAKING AH , THESE RIGHT AWAY PARCELS TO PUT THIS PLAZA AND ADJACENT. WE DON'T KNOW HOW WE HAVE FIGURED IT ALL OUT YET. WE HAVEN'T GOT

[00:55:02]

PHILLIPS POINT. THE CITIZENS DESERVE TO HAVE A BIG SAY IN THIS AND SO WE WANT TO GIVE THEM THAT OPPORTUNITY. SO THE CONCEPT YOU'VE SEEN IS JUST A STARTING POINT. HERE'S SOME OTHER ELEMENTS FOR PEOPLE TO CONSIDER. AND WE'RE GOING TO START, YOU KNOW, BUILDING UPON THAT, USING THAT INFORMATION FROM THE PUBLIC ENGAGEMENT PROCESS. AND THEN WHEN WE COME BACK WITH THAT SECOND FINAL CONTRACT IN 2025 HAVING ADDITIONAL PUBLIC ENGAGEMENT WITHIN FLESHING OUT WHAT THIS PART REALLY, TRULY LOOKS LIKE. THAT'S POSSIBLE. I'LL MAKE THE COMMENT THAT I'M GONNA YOU KNOW, UH, CHARLIE, I'M GONNA MITIGATE ALL YOUR GOODWILL AND I AM GONNA PULL THESE THREE THINGS DOWN. I DON'T THINK THEY BELONG ON CONSENT. YOU KNOW, I THINK THERE'S A LOT OF QUESTIONS STILL NEED TO BE ANSWERED ON THIS. I THINK THIS IS A LOT OF MONEY. TO BE GOING. AT THIS POINT, MY PERSONAL DESIRE WOULD BE TO SEE REALLY FOCUS ON WHAT AMOUNT OF MONEY CAN WE DO TO GET A REAL DESIGN? THAT'S GOING TO SHOW THE MITIGATION STRATEGIES? BECAUSE THE POSITIVE ON THIS THING TO ME IS THE CONNECTEDNESS AND I DON'T DESCRIBE DON'T MINIMIZE THAT AT ALL. I THINK THE CONNECTEDNESS WOULD BE WONDERFUL, BUT THE YOU KNOW THERE ARE COSTS. WE'RE TALKING A LOT ABOUT THE MONEY, BUT WE'RE TALKING ABOUT IT, YOU KNOW, POTENTIALLY BEING A VAGRANCY MAGNET. WE'RE TALKING ABOUT CONSTRUCTION DELAYS, AND WE'RE TALKING ABOUT FORCING SOME BUSINESSES AWAY AND I THINK THAT'S A REAL HIGH BAR TO SET BEFORE WE CROSS THE RUBICON AND REALLY GO TO THIS POINT AND I FEEL LIKE TODAY WE ARE CROSSING THE RUBICON. I THINK TODAY IF WE PROCEED WITH THIS THAN IT IS NOT GOING TO BE. IT'S GOING TO BE VERY DIFFICULT TO THROW THE BRAKES ON IT ANY POINT, SO I THINK COUNCIL SHOULD WEIGH IN ON THIS. IF I MAY. I MEAN, I APPRECIATE THE COMMENTS AND UNDERSTAND YOUR CONCERNS. STAFF STRUCTURE THIS IN A WAY TO TRY TO MEET TEXT DOTS REQUEST FROM US TO KEEP IT ON A CERTAIN SCHEDULE. IF WE DEVIATE FROM THAT, WE NEED TO BE ABLE TO COMMUNICATE THAT TO TECH START THAT THIS COULD ACTUALLY YOU KNOW IF WE WANT TO. WE WANT TO ADVANCE THE PARK DESIGNED TO A CERTAIN LEVEL. THIS COULD DELAY THAT PROJECT EVEN MORE RECOGNIZED THAT THIS MAY THAT THAT THIS MAY BE EXISTENTIAL FOR THIS PROJECT THAT THEY MAY HAVE TO PROCEED WITHOUT IT, BUT I JUST I DON'T FEEL COMFORTABLE AT THIS POINT. AH ALLOCATING THIS AMOUNT OF MONEY FOR THESE THINGS WITHOUT MORE CONVERSATION. IF THAT MAKES TEXT THAT SAY, GO AWAY WITH THIS THAN THAT'S SOMETHING THAT I HAVE TO LIVE WITH. SO, GARY, UM. TECH START. I MEAN, WE'RE ACTUALLY GOING TO BE REIMBURSED FOR THESE MONIES TODAY. WE'RE GOING TO BE REIMBURSED THROUGH ANOTHER FUNDING ON ANOTHER PROJECT. YES, BUT I MEAN, BUT IN ESSENCE FOR THE INFRASTRUCTURE INFRASTRUCTURE ONLY YES, SIR.

YES WHICH IS WHAT WE'RE DOING TODAY WE HAVE TO KIND TO DESIGN CONTRACTS, ONE FOR PARK, WHICH WAS THE 225,000. AND THEN WE ALSO HAVE THE INFRASTRUCTURE FOR 35. ON THE INFRASTRUCTURE. THEY ARE. IN ESSENCE, WE'RE BEING REIMBURSED BECAUSE WE HAVE A REALLOCATION. YES, SIR. AND IN ALL OF OUR CONVERSATIONS WITH TEXT DOT WITH MICHAEL MORRIS. RTC. WE WERE BEEN TOLD REPEATEDLY THAT THIS WAS NOT GOING TO DELAY THE PROJECT. AND I BELIEVE TECH STARTS MAKING EVERY EFFORT NOT TO DELAY THE PROJECT IN ALL OF OUR MEETINGS. YEAH, WHEN WE WHEN WE EXPRESS THAT CONCERN, WE WERE TOLD BACK. WHY WOULD IT DELAY THE PROJECT? WE HAVE THE ABILITY TO DO THIS IN THE IN THE IN THE TIMING OF OUR CURRENT PROJECT SCOPE. THAT INACCURATE. I MEAN, THEY HAVE ALLUDED TO THAT. I THINK NOW TECH START IS. MICHAEL MOORE SPECIFICALLY SAID THAT ON THE CALL WITH RTC AND TECH STOP NO, I MEAN YOU'RE RIGHT, THEY HAVE SAID THOSE COMMENTS PREVIOUSLY.

THANK YOU. GARY. I JUST WANT TO POINT OUT THAT NONE OF COUNCILMAN, INCLUDING HIS COMMENTS HAVE DIMINISHED MONTHS. UNCERTAINTY AND COMMENTS ON PEOPLE NOT FOLLOWING MY ADVICE.

THANK YOU. ALL RIGHT. THANK YOU, GARY. WE'RE GONNA MOVE ON TO 230969 PRESENTATION ON MCKINNEY

[Presentation on McKinney National Airport]

[01:00:05]

[01:05:09]

YES THANK FOLKS WHO ARE LISTENING. SO FROM 1979 WHEN THE AIRPORT BEGAN. THE CITY OF MCKINNEY OWNED THE AIRPORT. THE AIRPORT IS THE LAND. IT'S THE TAXIWAYS, THE RUNWAYS, THE RAMP SPACE THAT WAS ALL OWNED BY THE CITY OF MCKINNEY AT THAT TIME. THERE WAS A PRIVATE ENTITY QATAR AVIATION THAT RAN THE FIXED BASE OPERATION AND THE FIXED BASE OPERATION THERE IS AND WILL GET INTO THE DETAILS OF THAT. THAT IS A PRIVATE ENTITY THAT BUILT STRUCTURES ON OUR AIRPORT SO WE WOULD LEASED LAND TO THEM. THEY WOULD BUILD OFFICE. THEY WOULD BUILD FUEL FARMS. THEY WOULD BUILD HANGARS, AND THEN THEY WERE THEIR BUSINESS LEAST ALL OF THAT OUT AND PROVIDED THE FUEL TO THE AIRCRAFT. SO WHAT WE DID IN 2013 AS WE PURCHASE THAT, SO EVEN THOUGH WE OWN THE AIRPORT WE AT THAT TIME ALSO OWNED THE VERTICAL IMPROVEMENTS AT THE AIRPORT. AS WELL AS WE'LL GET INTO IT. I'VE GOT A GREAT SIDE FOR IT. AND THE AIR TRAFFIC CONTROL CONTROL TOWER WAS BUILT IN 1996. IS THAT THE BEGINNING OF FAA FUNDS. FOR BY THE AIRPORT . I DO NOT HAVE THAT. THAT'S ONE OF THOSE KIN. IT WAS EVEN PRIOR TO THAT TIME, AND BUT ONCE WE ONCE THE AIRPORT BEGAN RECEIVING FAA FUNDS WE NO LONGER HAD THE ABILITY TO RESTRICT ANY TYPE OF AIR OPERATIONS. ONE OF THE THINGS WE WON'T GET INTO MUCH TONIGHT. BUT WHEN YOU ACCEPT FEDERAL FUNDS FOR AN AIRPORT, YOU BECOME PART OF THE NET. THAT NATIONAL SYSTEM OF AIRPORTS AND IN DOING SO AND ACCEPTING THOSE GRANT FUNDS YOU TAKE ON WHAT ARE KNOWN AS GRANT ASSURANCES. BASICALLY THERE'S A LAUNDRY LIST OF THINGS YOU HAVE TO SAY. WE AGREE WITH THESE THINGS WERE GOING TO PAY. THE APPROPRIATE WAGES WERE GOING TO, YOU KNOW. BY OUR MATERIALS FROM CERTAIN SOURCES. WE'RE GOING TO BE AGNOSTIC TO THE TYPES OF USES. WHEN SOMEONE COMES. WE CANNOT DISCRIMINATE AGAINST ONE USER OVER ANOTHER. AND SO THOSE ARE THE THINGS YOU HAVE TO ACCEPT AS A FEDERAL, AND THAT DIET WAS CAST WELL OVER 25 YEARS AGO BEFORE WE EVER OWNED THE FBO. YES EVEN BEFORE THE AIR TRAFFIC CONTROL TOWER ALRIGHT, SO MOVING TO THE NEXT SLIDE. JUST REALLY BRIEF. I'M NOT GOING TO SPEND A LOT OF TIME ON THE BUDGET HERE BECAUSE WE'RE GOING TO GET INTO A LOT OF DOLLARS AND CENTS ON FUTURE SLIDES, BUT GENERALLY REVENUES OF THE AIRPORT. THE PRIMARY CATEGORIES ARE YOUR FBO FEES. FUEL SALES IS A BIG DRIVER HERE. RAMP FEES LINE SERVICE FEEDS SOMEONE FUELS THEIR AIRCRAFT IF SOMEONE GETS TOWED FROM A HANGER OR SPENDS TIME ON THE RAMP, OR HAS OUR CREWS PUMP OUT THEIR SEPTIC SYSTEM FROM THEIR AIRCRAFT, THOSE ARE ALL THINGS THEY PAY FEES TO THE AIRPORT FOR HANGAR AND OTHER LEASES. WE HAVE A LOT OF HANGAR SPACE AT THE AIRPORT IN OFFICE SPACE. AS WELL AS TIED DOWN SPACE, WHICH ARE AREAS OUT ON THE RAMP WHERE PEOPLE PHYSICALLY TIED DOWN SMALLER AIRCRAFT. ALL OF THOSE COME WITH FEES ASSOCIATED WITH HIM. AND THEN THE FINAL BIG CATEGORIES INTERGOVERNMENTAL AND THESE ARE GRANTS FROM BOTH FEDERAL AND STATE SOURCES. AND WE ARE VERY ACTIVE AND CONSTANTLY LOOKING FOR ACCESS TO FEDERAL FUNDING AND STATE FUNDING TO HELP US WITH OUR GOALS AT THE AIRPORT. EXPENSES PERSONNEL. OF COURSE, YOU HAVE YOUR SALARIES AND YOUR BENEFITS FOR OUR FBO AND AIRPORT EMPLOYEES. SUPPLIES WERE OUT THERE MOWING THE GRASS AND CHANGING THE LIGHTBULBS AND PUTTING DOWN WEED KILLER.

MAINTENANCE SO BECAUSE WE OWN FACILITIES, WE HAVE TO MAINTAIN THOSE FACILITIES, BUILDINGS THAT FUEL FARMS AIRFIELD ITSELF THE HANGERS. UM AND THEN SERVICES AND SUNDRIES PROBABLY OUR BIGGEST CATEGORY AND YOU CAN SEE THE SUBCATEGORIES. IT'S LITTLE THINGS LIKE TRAVEL AND TRAINING.

AS WE SEND OUR PEOPLE TO BE CERTIFIED IN THERE. THEIR JOBS, PHONES, INTERNET RENTAL

[01:10:01]

SO THIS IS THE C I. P FOR THE AIRPORT, MUCH LIKE WE FUND A SIP PROGRAM FOR ROADS AND PARKS AND FACILITIES. IN FACT, WE HAVE A BOND ELECTION COMING UP HERE IN MAY TO PROVIDE ADDITIONAL FUNDING. FOR NON AIRPORT BONDS. SO WHAT? THIS DOES IT THE AIRPORT CONSTRUCTION FUNDS FUNDS THAT DESIGN THE PLANNING THE CONSTRUCTION OF RUNWAYS, TAXIWAYS HANGERS, OFFICE SPACE.

FBO TERMINALS RECONSTRUCTION OF NEEDED IMPROVEMENTS. ADD SECURITY FENCES, GATES. ANYTHING THAT'S BUILT AT THE AIRPORT ARE MAINTAINED AT THE AIRPORT AT SOME POINT TOUCHES THE AIRPORT CONSTRUCTION FUND. THE FUNDING OF THE AIRPORT CONSTRUCTION FUND IS DONE AS PART OF THE CITY'S ANNUAL BUDGET PROCESS. SO WHAT WE TYPICALLY DO IS WE HAVE SOURCES OF FUNDING. SOMETIMES THOSE FUNDS ARE FROM THE GENERAL FUND THAT THE COUNCIL WILL CHOOSE TO PUT GENERAL FUND DOLLARS IN THE AIRPORT CONSTRUCTION FUNDS. WE ALSO HAVE A LOT OF FUNDS THAT COME IN FROM GRANT APPLICATIONS AND REVENUES FROM THAT WOULD BE FROM FEDERAL AND STATE PROGRAMS. WE ALSO HAVE FUNDS JUST RECENTLY. A COUPLE OF WEEKS AGO, WE HAD THE TOURIST BOARD ACT ON A $2.8 MILLION TOURS NUMBER TO GRANT TO THE AIRPORT CONSTRUCTION FUNDS. THOSE FUNDS COMING FROM A

[01:15:03]

WE HAVE THE COUNCIL STRATEGIC GOALS AND STRATEGIES AND, LIKE I POINTED TO EARLIER, MAXIMIZING THE DEVELOPMENT POTENTIAL OF MCKINNEY NATIONAL AIRPORT HAS BEEN ON THE BOARD OVER HERE AND IN THE COUNCIL STRATEGIC PLAN FOR A NUMBER OF YEARS. I HIGHLIGHTED ONE WHICH IS OBJECTIVE THREE A, WHICH IS IMPLEMENTED INITIATIVES AND STRATEGIES, INCLUDING PUBLIC PRIVATE PARTNERSHIPS TO ATTRACT AND EXPAND CORPORATE AND COMMERCIAL AVIATION, INCLUDING VIABILITY OF PASSENGERS SERVICE THAT'S BEEN ON THE BOARD AND IN THE PLAN FOR A NUMBER OF YEARS.

AND IT'S SOMETHING THAT WE WORK TO DO. WE WANT TO MAXIMIZE THE VALUE OF THE ASSET OF THE AIRPORT IN WHATEVER WAY THAT IS, AND I'M NOT GOING TO GET INTO VERSUS COMMERCIAL NECESSARILY TODAY, BUT YOU KNOW WE'RE WORKING ON PROJECTS. IN FACT, THE LAST MEETING WE HAD A COUPLE OF PROJECTS THAT CAME THROUGH THAT ARE GOING TO HELP US ENHANCE THE PORTION OF THE AIRPORT. THE COUNCIL IS ALSO ADOPTED AIRPORT GUIDING PRINCIPLES AND THIS HELPS GUIDE US AS WE'RE MOVING FORWARD WITH PROJECTS. THE FIRST IS MAXIMIZE THE CONTRIBUTION OF MCKINNEY NATIONAL AIRPORT TO THE ECONOMIC GROWTH OF THE CITY AND THE REGION. THAT IS WHY WE HAVE THE AIRPORT AND THAT'S WHY WE CONTINUE TO GROW THE AIRPORT. WE WANT TO ALIGN THE NEARER AND LONG TERM ECONOMIC AND COMMERCIAL DEVELOPMENT OF AIRPORT INFRASTRUCTURE WITH CITY AND REGIONAL ECONOMIC GROWTH, SO WE WANT TO PROVIDE THE HIGHEST AND BEST USED AT THE AIRPORT. WE HAVE AN ASSET IF WE UNDER USE, UTILIZE THE ASSET, THEN WE ARE FOREGOING THE REVENUES AND THE ECONOMIC BENEFIT. IT COULD HAVE BEEN A GREAT EXAMPLE OF THIS. AS IF WE HAVE A 10 ACRE TRACT, AND WE PUT ONE HANGER IN THE MIDDLE OF THAT 10 ACRE TRACK THAT HAS ONE AIRPLANE IN IT, AND IT'S LOCATED POORLY AND IT RUINS THE AVAILABILITY AND USEFULNESS OF THE REST OF THAT 10 ACRE TRACK.

WE FAILED IN OUR GOAL OF MAXIMIZING THAT ECONOMIC POTENTIAL, AND WE'LL SHOW A GOOD EXAMPLE OF THAT LATER ON. SO NOW I'M GOING TO JUMP STRAIGHT INTO 2013. AND A COUPLE OF THINGS AND YOU'RE GONNA SEE A LOT OF SLIDES THAT LOOK LIKE THIS. AS WE WALK THROUGH TIME. I WANT TO SHOW PEOPLE WHERE THESE ARE IN. YOU WILL SEE WE HAVE THE WEST SIDE OF THE AIRPORT. WE HAVE THE EAST SIDE OF THE AIRPORT. EVERYTHING WE'VE DONE TO DATE. IS ON THE WEST SIDE OF THE AIRPORT, AND EVERYTHING IS GENERAL AVIATION RELATED. SO IN 2013 BEFORE WE PURCHASE THE FBO, AND THIS IS WHAT WE TALKED ABOUT EARLIER. WE HAD THESE PRE ACQUISITION WHAT I HAVE CALLED THEM PRE ACQUISITION GROUND LEASES. SO THE BLUE BOXES SO YOU HAVE THREE DOWN HERE AT THE VERY SOUTH IS YOUR KOA HANGERS? THAT'S A GROUND LEASE. PRIVATE ENTITY LEASES THE LAND FROM THE CITY AND THE AIRPORT.

THEY WENT OUT AND AT THEIR EXPENSE. THEY BUILT THOSE HANGERS AND THOSE HANGARS, HOUSES AIRCRAFT, THOSE AIRCRAFT OWNERS PAID LEASE OR IN THIS CASE, I BELIEVE THEY'RE CONDOMINIUMS. THEY PURCHASED EACH OF THESE INDIVIDUAL HANGERS . AND SO THE BENEFIT TO THE CITY IS TWO FOLD NUMBER ONE. THE GROUND LEASE GOES TO THE REVENUE SIDE OF THE LEDGER. THE OTHER IS THE PEOPLE WHO LOCATE THEIR AIRCRAFT AND THOSE HANGERS. THEY GO TO US TO BUY FUEL TO HAVE THERE. LIKE I SAID, SEPTIC SYSTEMS PUMPED OUT TO BE TOWED AROUND THE AIRFIELD, AND THEY PAY FEES FOR ALL OF THOSE, INCLUDING PURCHASING FUEL, SO THERE WERE THREE AT THE TIME IN 2013 1 WAS CODE AND ON THE SOUTH END. THE LARGE ONE TO THE TOP LEFT IS MORE, WHICH IS MCKINNEY HANGER OWNERS ASSOCIATION. THE SHOAH IS COLLIN COUNTY HANGERS OWNERS ASSOCIATION, AND THEN WE HAD ONE HANGAR LOCATED UP IN THIS AREA CLOSER TO THE MIDFIELD , AND THAT IS A GROUND LEASE AND YOU CAN SEE THE REVENUES IN I DIDN'T PULL THE REVENUES IN 2013 THERE. BUT FURTHER BACK IN TIME YOU GO A LITTLE MORE DIFFICULT. IT IS TO DISCERN WHAT IS WHAT, BUT I CAN TELL YOU THAT IN 2023

[01:20:04]

BUT THEY ARE NOT CONSIDERED COMMERCIAL PASSENGER SERVICE. THANK YOU. SO JUST A LIST OF SOME OF THE THINGS I'VE ALREADY SAID WHAT WE HAD ALL ALONG SINCE 1979 IS ON THIS LIST HERE, SO YOU'VE GOT YOUR WE WERE RESPONSIBLE FOR REGULATORY COMPLIANCE WITH FAA AND TEXT THAT REGULATIONS, LOCAL RULES AND REGS. AIRPORT DEVELOPMENT, INCLUDING GROUND LEASES, LAND USE PLANNING THE MASTER PLAN MINIMUM STANDARDS. WE WERE RESPONSIBLE FOR MAINTENANCE OF THE AIRFIELD, SO WE HAD TO GO MOW THE GRASS AND FIX THE LIGHT BULBS AND PATCH THE CONCRETE WHEN IT BROKE, AND THEN WE HAD THE RAMPANT TAXIWAYS AND RUNWAYS . ALL OF THAT WAS OUR RESPONSIBILITY TO MAINTAIN. UH EVEN BEFORE WE BOUGHT THE FBO TERMINAL. WHEN WE BOUGHT THE FBO WE TOOK ON THESE OTHER THINGS, AND THIS IS NOVEMBER OF 2013. WE TOOK ON LIKE I SAID, AIRCRAFT, FUELING FACILITY LEASING, INCLUDING HANGERS AND OFFICE SPACE. UM THERE'S LIMITED

[01:25:03]

WE'RE GOING TO HAVE HIGHER USERS OF OUR FUEL CELLS. WE THINK IT WILL GENERATE APPROXIMATELY $100,000 MORE STARTING PROBABLY NEXT YEAR. WITHIN WHEN IN RECONSTRUCTED THE RAMP, SO GOING BACK TO THIS. YOU CAN SEE THE OLD RAMP WAS AN ASPHALT RAMP. IT WAS AGING HAD BEEN OUT THERE, PROBABLY SINCE THE BEGINNING. WE THEN WENT OUT AND WE EXPANDED IT AND WE REPAVED IT TO CONCRETE.

IT'S IN GREAT SHAPE TODAY, BUT THAT WAS A $6.82 MILLION COST OF CONSTRUCTION. WE WERE ABLE TO GO TO TEXT THAT AND THEY FUNDED $6.2 MILLION OF THAT PROJECT, SO THE CITY'S MATCH WAS $620,000.

AND THESE ARE THE REVENUES LIKE I WAS SAYING THAT WE ATTRIBUTE TO THE TRANSIENT AIRCRAFT. THEY COME IN THE NET JETS AND THE CORPORATE ENTITY THAT'S BASED IN NEW YORK CITY, BUT FLIES HERE FOR BUSINESS. THIS IS THE REVENUE THEY DRIVE TO THE AIRPORT. THERE IS AN OLD PICTURE OF IT WHEN IT WAS FIRST COMPLETED. CORPORATE HANGER REMODEL, SO WE HAVE A CORPORATE TENANTS IN THIS USED TO BE THE HP HANGER. WE HAVE A NEW CORPORATE TENANT THAT WAS MOVING IN, AND THEY WANTED TO EXPAND AND RENOVATE THE FACILITY DID COST $6.2 MILLION TO DO THAT 5 MILLION WAS FROM AN INTER FUND LOAN FROM OTHER CITY FUNDS AND 1.2 MILLION WAS FROM THE AIRPORT CONSTRUCTION FUNDS. IN RETURN FOR THIS, THE NEW TENANT WAS ABLE TO SIGN A LONGER TERM LEASE , WHICH KEEPS ONE OF OUR HIGHEST USERS, ONE OF THE HIGHEST FUEL PURCHASERS AT THE AIRPORT FOR A LONGER TIME, AND I WILL JUST SAY, WITHOUT MENTIONING THEIR NAME. IT IS A LARGE, UH, INTERNATIONAL CORPORATION THAT HAS A FLEET OF FIVE AIRCRAFT THAT ARE ALL BASED NOT ALL BASED HERE, BUT THEY ARE ALL OPERATED FROM HERE WITH THEIR ENTIRE FLIGHT DEPARTMENT. SO JOBS AND THE BENEFIT OF A GREAT CORPORATE TENANT. THAT THAT ONE HANGER RIGHT THERE IN 2023 GENERATED OVER $800,000 IN REVENUE. AND I FAILED TO MENTION THIS. WHEN I WAS MAKING THESE SLIDES. I THOUGHT IT WOULD BE SMART TO PUT SOME STARS OUT HERE ON THINGS THAT WERE BUILT AROUND THE AIRPORT. SO AS YOU LOOK AT THE GROWTH AROUND THE AIRPORT THAT'S GOING TO BE A KEY PLAYER AS WE GO INTO THE FUTURE, SO AS WE'RE GROWING THE AIRPORT, THE INFRASTRUCTURE IS GROWING AROUND THE AIRPORT. THE COMMERCIAL AND INDUSTRIAL DEVELOPMENT AROUND THE AIRPORT IS REALLY STARTING TO, UM TO BUILD FAIRLY QUICKLY. AND 2018. WE BUILT CORP. EIGHT HANGER CORN. IT WAS NAMED AS THE MARK TO HANGAR SO THIS ONE WAS A 10,000 SQUARE FOOT HANGAR. IT DID COST $1.225 MILLION CAME FROM THE AIRPORT CONSTRUCTION FUND. THIS ONE ONLY GENERATES $95,000 LAST FISCAL YEAR, AND THE REASON I HAD I ASKED THE AIRPORT ABOUT THIS, AND SO WHEN THIS ONE WAS BUILT, THEY BUILT A SMALLER HANGER THAT HAD A MUCH LOWER DOOR HEIGHT, SO IT REALLY LIMITS THE TYPE OF AIRCRAFT THAT WE CAN PLACE IN THAT HANGAR AND I'LL SAY WE WON'T BUILD A HANGER LIKE THIS AGAIN. IT'S PROVEN THAT IT WAS NOT THE RIGHT THING TO BUILD. AND SO AS WE MOVE FORWARD, WE WILL SEE THE HANGERS ARE LARGER AND CAN ACCOMMODATE O GENERATE REVENUES FOR THE CITY. 2018 WE CHOSE TO PURCHASE 190 ACRES ON THE EAST SIDE OF THE AIRPORT. SO THE BIGGEST PART OF THIS IS A PRESERVE OF THE EAST SIDE OF THE AIRPORT FOR AERONAUTICAL USES, YOU'LL SEE AS THE STARS ARE POPPING UP ON THE SCREEN AND YOU SEE ALL THE COMMERCIAL DEVELOPMENT HAPPENING AROUND THE AIRPORT. IT WAS REALLY IMPORTANT FOR US TO GET OUT IN FRONT OF THAT AND KIND OF PURCHASE LAND TO KIND OF BLOCK OFF SOME OF THAT COMMERCIAL DEVELOPMENT. WHEN THE INFRASTRUCTURE GETS THERE. THE

[01:30:02]

IF IT WASN'T UNDER OUR CONTROL, IT WOULD BE ZONED AND DEVELOPED AS SOMETHING NOT AIRPORT RELATED . COULD BE INDUSTRIAL COULD BE ANYTHING AND WE WOULD WE WOULD MISS OUT ON THE FUTURE GROWTH POTENTIAL OF THE AIRPORT. A GREAT EXAMPLE OF THIS, EVEN THOUGH IT'S A GREAT AIRPORT.

THAT'S VERY SUCCESSFUL. ADDISON ADDISON IS SO LANDLOCKED, THEY CANNOT GROW AND THEY'RE KIND OF BUILT OUT AT THIS POINT, SO AS THE REGION CONTINUES TO GROW, YOU KNOW, BEYOND 17,000,010 MILLION IN DFW, AND ALL OF THESE BUSINESSES ARE LOOKING FOR A HOME. ADDISON DOESN'T HAVE LAND FOR HIM. WE WANTED TO MAKE SURE THAT WE WERE PREPARING FOR THE FUTURE SO YOU CAN SEE THE UM, THE COST WAS $22.5 MILLION. THAT TIME WE DID USE GENERAL FUND BALANCE, TOO. PARTNER WITH AN INTER FUND LOAN FROM OUR RISK INSURANCE FUND BALANCE, AND THEN WE HAD AIRPORT CONSTRUCTION FUND BALANCE AND TURNS TO IS ABLE TO ADD GRANT 3 MILLION TO THIS PROJECT. SO THIS IS WHAT I WOULD CALL TODAY. A NON REVENUE PRODUCING ASSET. BUT IT IS A FUTURE IT'S GOING TO BE A HUGE REVENUE PRODUCING ASSET IN THE FUTURE, BUT IT PROTECTED US FROM LOSING THAT OPPORTUNITY IN THE FUTURE, SO IT IT WAS TRULY AN INVESTMENT IN THE LONG TERM FUTURE OF THE AIRPORT. THEN EVERYONE'S FAVORITE PROJECT WE CONSTRUCTED. WE ENTERED INTO AN INITIAL PARTNERSHIP WITH WESTERN LLC AND THEY WERE A THIS WAS A P THREE OR PUBLIC PRIVATE PARTNERSHIP WHERE WE WERE GOING TO BUILD A 40,000 SQUARE FOOT HANGAR AND AN FBO TERMINAL. SO WE WERE IN THE OLD FBO TERMINAL, WHICH IS YOUR TYPICAL 19 EIGHTIES ERA OFFICE SPACE. WE WANTED TO BUILD SOMETHING THAT REFLECTED WHAT WE WANTED MCKINNEY TO BE AND TO ATTRACT MORE CORPORATE AND, UH TRANSIENT AIRCRAFT. WE ENTERED INTO THE DEAL. IT WAS INTENDED TO BUILD A LIKE I SAID 40,000 SQUARE FOOT HANGAR, 17,000 SQUARE FOOT FBO EXECUTIVE TERMINAL BUILDING. IT DID INCLUDE ASSOCIATED WITH THE HANGER ON THE BACK SIDE. YOU CAN'T SEE IT IN THE PHOTO. IT HAS 9000 SQUARE FEET OF OFFICE SPACE THAT WE ALSO LEASE OUT TO TENANTS AND ENCLOSED PARKING GARAGE SPACES. WITH THIS PROJECT . THEY ALSO INCREASE THE PARKING OF THE MIDFIELD AREA HERE BY 88 PARKING SPACES. SO THE $18 MILLION TOTAL COST OF CONSTRUCTION AND THIS IS HOW IT'S CURRENTLY FUNDED SO INITIALLY THE CDC EACH GRANTED $4 MILLION TO THE PROJECT AND THE AIRPORT CONSTRUCTION FUND FUNDED $2 MILLION. AT THE TIME THE DEAL WAS MADE. WESTERN LLC WAS GOING TO FUND THE REMAINING PORTION OF THE PROJECT, AND AT THAT POINT, THEY WOULD OWN THE HANGAR AND THEY WOULD OWN THE FBO TERMINAL THAT WE WOULD LEAST BACK FROM THEM. WHEN THEY WENT BELLY UP FOR, YOU KNOW, REASONS OUTSIDE OF OUR CONTROL AND REASONS NOT WHOLLY ASSOCIATED WITH MCKINNEY. THEY WENT BELLY UP AND WENT BANKRUPT. THEIR COMPANY WENT UNDER AND AT THAT TIME WE DID COME BACK IN AND FUND $6 MILLION TOWARDS THIS PROJECT USING CEOS THE BENEFIT OF DOING THAT ACTUALLY, NUMBER ONE. WE HAD A DEAD PROJECT AND OUR PARTNER WAS NO LONGER A PARTNER. AND SO WE NEEDED TO DO SOMETHING. BUT WHEN YOU LOOK AT IF HE TOOK THEM TO THE END OF THE LEAST PERIOD, SO YOU LOOKED AT ALL THE MONEY. WE INVESTED UP FRONT, PLUS THE LEASE PAYMENTS OVER THE ■20 YEAR LEASE. THAT PROJECT WAS GOING TO COST US OVER $22 MILLION WHEN YOU LOOK AT THE UPFRONT INVESTMENT INTO THE PROJECT, PLUS THE DEBT SERVICE OVER 20 YEARS ON OUR $6 MILLION, IT WAS JUST OVER $20 MILLION TOTAL COSTS. WE ACTUALLY SAVED 1.5 TO $2 MILLION IN OVERALL COSTS OVER THE 20 YEAR PERIOD BY GOING THIS ROUTE. UM, IS UNFORTUNATE WHAT HAPPENED WITH OUR PARTNER AND, UM THE GOOD NEWS WAS, THEY DID FINISH THE REVENUE PRODUCING PORTION OF THE PROJECT EARLY AND WE'VE BEEN ABLE TO LEASE THAT OUT THE COST OF THE HANGAR ITSELF. BY BY ITSELF WITH THE OFFICE ASSOCIATED OFFICE IN GARAGES, $9.8 MILLION COST TO CONSTRUCT THAT BUILDING THERE. TODAY IT'S GENERATING JUST OVER A MILLION DOLLARS ANNUALLY IN REVENUE. IN FACT, 2023 THE FUEL SALES WERE DOWN BECAUSE OF THE MIX OF AIRCRAFT IN THE HANGAR. WE'VE ACTUALLY BEEN OVER $1.2 MILLION IN SOME FISCAL YEARS FROM THIS HANGAR ALONE, SO THAT'S WHAT WE LOOK AT. WE LOOK AT THE INVESTMENT WHERE THE COST OF THAT IS OVER TIME, WHETHER IT'S GOT DEBT SERVICE, OR GRANT MONEY UP FRONT, AND THEN WE LOOK AT THE REVENUES TO BE GENERATED FROM THAT PROJECT, AND WE DETERMINE WHETHER OR NOT A SPECIFIC PROJECT CAN FUND ITSELF. AH, SO AND NORTH CONSTRUCTION. SO IN 2023 WEEKS WE COMPLETED I THINK IT WAS IN 2022. WE STARTED THE PROJECT. WE HAD A GROUND LEASE UP HERE AT THE NORTH END OF THE RAMP. AND MUCH LIKE KOA AND MO. UH, WE HAVE COHEN NORTH, SO THEY HAD A 40 YEAR GROUND LEASE. THEY CONSTRUCTED 10 PRIVATE HANGARS.

THEY TURNED AROUND AND SOLD TO AIRCRAFT OWNERS REVENUES FROM THAT PROJECT, SO IT'S PRIVATELY

[01:35:03]

COMPLETION FBO TERMINAL THIS YEAR WE HAVE OPENED IT UP AND WE ARE JUST ABOUT READY TO HAVE OUR GRAND OPENING CELEBRATION. WE'RE IN THE PLANNING PHASES OF THAT. BUT WHAT THIS DOES IS IT PROVIDES THAT FRONT DOOR THAT WE WANT FOR OUR CORPORATE AND, UH TRANSIENT. AIRCRAFT. AT THE SAME TIME THIS YEAR. WE HAVE ALSO COMPLETED THIS PROJECT HERE, WHICH IS THE AIRPORT MAINTENANCE BUILDING THAT PROVIDES A FACILITY A PERMANENT FACILITY FOR MAINTENANCE AND UPKEEP OF THE AIRPORT. PREVIOUSLY, WE'RE JUST USING A HANGAR SPACE THERE WAS DOWN. COME HERE. FOR OUR MAINTENANCE FACILITIES. WE WERE TAKING UP LEASABLE SPACE TO PUT OUR MOWERS AND OUR TRUCKS AND OTHER EQUIPMENT. AND NOW WE HAVE BUILT A STANDALONE AIRPORT MAINTENANCE BUILDING. THAT WAS $5.5 MILLION FROM AIRPORT CONSTRUCTION FUND AND THEN WE'VE ALSO THIS YEAR COMPLETED A 500 FT EXTENSION TO THE RUNWAY AND TAXIWAY. BRAVO SO GENERALLY YOU'VE GOT TAXIWAY ALPHA TAXIWAY, BRAVO AND THEN THE RUNWAY. AND THAT WAS BUILT WITH A 14. $0.25 MILLION GRANT FROM TEXTILE. WE WENT THROUGH THE LEGISLATIVE PROCESS AND HAD IT INCLUDED IN THEIR BUDGET AND WERE GRANTED FORT INITIALLY. $15 MILLION, WHICH THEY PULLED BACK TO 14.25 AND THE LOCAL MATCH FROM THE CONSTRUCTION FUND WAS $1.5 MILLION. SWITCHING GEARS. AS WE'RE JUST GETTING STARTED.

WE'RE GONNA TALK A LITTLE BIT ABOUT TOURS NUMBER TWO. SO TAX IMPLEMENT REINVESTMENT ZONE IS A ZONE WHERE HAS CITY DESIGNATED ZONE AND WITHIN THAT ZONE, THERE IS A BASE YEAR. SO IN THIS CASE, IT WAS 2010. THE CITY CAPTURES REAL PROPERTY TAXES AND IN OUR CASE ALSO SALES TAXES. WE DETERMINE WHAT WAS GENERATED IN THE BASE YEAR AND THEN EACH YEAR AFTER THE BASE YEAR, WHATEVER THE INCREMENT WAS ABOVE THE BASE YEAR AMOUNT IS CAPTURED BY THE TOURISTS. 100. OF CITY. REAL PROPERTY TAXES AND SALES TAXES ABOVE. WHAT WAS GENERATED IN 2010 IS CAPTURED BY THE TOURS AND KEPT TO BE SPENT WITHIN THIS DISTRICT. THE COLLIN COUNTY. COMMISSIONER'S COURT ALSO PARTNERED WITH US ON THIS PROJECT 50% OF THEIR INCREMENTAL PROPERTY TAXES IS CAPTURED BY THE TOURS AND IS SPENT ON PROJECTS IN THIS DISTRICT. IN THE MOST RECENT FISCAL YEAR THAT GENERATED 2.3. 5 $8 MILLION IN REVENUES. THOSE ARE GENERALLY POOLED IN THE FUND BALANCE FOR THE TOURS TO BE USED ON PROJECTS THAT MEET THE PROJECT PLAN OF THE DISTRICT. SO. THAT'S A LITTLE BLURRY UP THERE. BUT THIS IS PULLED FROM THE MOST RECENT ANNUAL REPORT LOOKING AT THE BASE YEAR JUST TO KIND OF WALK THROUGH AN EXAMPLE OF THE CITY, MCKINNEY BASE YEAR. PROPERTY TAX VALUE WAS $117 MILLION. THAT THE $117 MILLION FOR THE TAXES ON THE $117 MILLION CONTINUES TO GO TO THE GENERAL FUND. THE NET TAXABLE VALUE THAT YEAR IN THIS ONE WAS FISCAL YEAR FOR TAX YEAR. 2021 WAS 273. SO THE TOURS THE TAXES THAT WERE PAID ON 156 $156,000 ARE CAPTURED AND KEPT BY THE TOURIST FUND. AND THEN SALES TAX. SAME THING. IN THE BASE YEAR. THERE WERE $493,222.

OF SALES TAXES IN THE ZONE IN FISCAL YEAR. 2022 IT WAS 1.6 MILLION, SO THE DIFFERENCE BETWEEN THOSE IS CAPTURED BY THE TOURS. LOOKING AT THE PROJECT PLAN A COUPLE OF THINGS I'LL GO THROUGH THESE PRETTY QUICKLY. THE PROJECT PLAN HAS A MISSION STATEMENT THAT'S ON THE SCREEN

[01:40:02]

SO THESE ARE THE TYPES OF THINGS THAT THE FUNDS CAN BE SPENT ON. FIRST IS FOCUSED ON BUSINESS AVIATION ACTIVITY. SECOND IS CONTINUED TO ASSESS PERIMETER ACCESS, CONTROL AND SECURITY, WHICH IS VERY IMPORTANT AS YOU ARE RUNNING AN AIRPORT. AND THEN CONTINUE TO PREPARE FOR COMMERCIAL PASSENGER SERVICE. AND THESE WERE ALL ADOPTED IN 2010. SINCE IT WAS ADOPTED, THERE HAVE ONLY BEEN THREE FUNDING REQUESTS APPROVED OTHER THAN THE ANNUAL ADMINISTRATION COSTS WERE WHICH ARE MINIMAL. UM, YOU HAD $3 MILLION TOWARDS THE ACQUISITION. WE TALKED ABOUT $2 MILLION FOR EAST SIDE PROGRAMMING DOCUMENTS. THIS IS WHAT YOU SAW WITH THE COMMERCIAL BOND ELECTION. THE PLANS WERE DEVELOPED USING THOSE FANS AND THEN JUST HERE IN NOVEMBER, THE 2.864 MILLION FOR CONSTRUCTION OF VACCINE ACCESS TAXI LANE, A FOR WHICH I'LL SHOW YOU EXACTLY WHERE THAT IS, AND THE BENEFIT OF THAT PROJECT HERE IN JUST A MOMENT. I ALSO WANTED TO TALK ABOUT BUSINESS, PERSONAL PROPERTY, SO LIKE I SAID THE INCREMENTAL REAL PROPERTY TAXES ARE CAPTURED BY THE TOURS. AND SO THOSE FUNDS GO INTO THE TOURIST FUND BUSINESS. PERSONAL PROPERTY INCLUDES EVERYTHING FROM EQUIPMENT USED BY BUSINESS OR AN INDUSTRY BUT ALSO INCLUDES COMMERCIAL. UM CORPORATE AIRCRAFT. AH! IN 2023 COLIN CENTRAL APPRAISAL DISTRICT DETERMINED THAT THERE WAS $186 MILLION OF BUSINESS PERSONAL PROPERTY AT MCKINNEY NATIONAL AIRPORT. SO THAT WOULD PAY THE SAME TAXES AT THE SAME RATE. JUST OVER 42 CENTS PER 100 IS OUR TAX RATE THIS YEAR THAT WOULD PAY THE SAME PROPERTY TAXES EQUIVALENT TO 400 AVERAGE SINGLE FAMILY HOMES IN MCKINNEY. SO THE AIRCRAFT AND EQUIPMENT AT MCKINNEY NATIONAL AIRPORT PAYS THE EQUIVALENT OF 400 AVERAGE SINGLE FAMILY HOMES AND THAT IS NOT CAPTURED BY THE TOURS THAT GOES TO OUR GENERAL FUND. UH, JUST SOME QUICK NOTES. IT INCLUDED 39 AIRCRAFT BASED AT MCKINNEY THAT HAD A MARKET VALUE OVER A MILLION DOLLARS AND OF THOSE 14 WERE VALUED AT OVER $5 MILLION.04 OF THEM WERE VALUED AT OVER $10 MILLION AND I JUST BECAUSE I THOUGHT IT WAS INTERESTING. THE MOST VALUABLE SINGLE AIRCRAFT AT OUR AIRPORT PAID THE SAME PROPERTY TAXES AS 35 HOMES IN MCKINNEY. ONE AIRCRAFT 35 HOMES. SO VERY THAT WOULD BE ONE ANSWER TO THE QUESTION ON HOW THE AIRPORT BENEFITS RESIDENTS IN MCKINNEY. YES, THESE ARE TAX DOLLARS AND YOU CAN SEE HERE. UM NOW SOME OF THE B P P BUSINESS. PERSONAL PROBLEM. I'M SORRY. SET THAT ASIDE. PROPERTY TAX REVENUES THAT ARE GENERATED HERE. IF IT'S A LAND LEASE, SO IF THEY LEASED THE LAND, AND THEY BUILD HANGARS, THOSE ARE ACTUALLY REAL PROPERTY TAX ASSETS SO THOSE WOULD BE CAPTURED BY THE TOURISTS. BUT THE AIRCRAFT AND EQUIPMENT ARE NOT SO. WHEN YOU LOOK AT THE TAXABLE VALUE IN 2013 WHEN WE BOUGHT THE FBO TERMINAL. THE TAXABLE VALUE IS APPROXIMATELY $97.2 MILLION LAST YEAR, IT WAS $186.6 MILLION, AND YOU CAN SEE ON THE BOTTOM LINE OF THIS TABLE HERE. THE VARIOUS ENTITIES THAT RECEIVED THOSE TAX FUNDS. SO ALMOST 800,000 FOR THE CITY OF MCKINNEY. GENERATED 2.3 MILLION FOR MISTY. NOW AM I S D IS NOT A PARTICIPANT IN THE TOURIST SO NONE OF THEIR TAXES COLLECTED. GO TO OUR THURSDAY DISTRICT. THEY ALL GO TO THE SCHOOL DISTRICT. THE COUNTY 265,000 AND THE COLLEGE 141,000. AND YOU CAN SEE OVER THE TIME PERIOD FROM THE YEAR WE BOUGHT THE FBO, YOU COULD SEE TOTAL COLLECTIONS FOR THOSE FOUR TAXING ENTITIES. $24.6 MILLION IN TAXES PAID BY THE ASSETS AT THE AIRPORT. ON TOP OF THAT WE ALWAYS TALK ABOUT THE ECONOMIC IMPACT. SO IN 2018. TEXT DOT AVIATION COMPLETED A STATEWIDE AVIATION ECONOMIC IMPACT STUDY. AND SO THEY HAD SOME GRAPHICS THAT I USED HERE. THAT REALLY ILLUSTRATE HOW THAT WORKS. THEY LOOK AT DIRECT IMPACT, SO DIRECT IMPACTS ARE EVERY ALL THE CAPITAL IMPROVEMENTS AT THE AIRPORT, THE ON AIRPORT JOBS. THE ON AIRPORT. UM EQUIPMENT AND EVERYTHING ELSE BUT ALSO VISITOR IMPACT. SO THOSE ARE ALL DIRECT IMPACTS. THEN THEY ALSO LOOK AT WHAT THEY CALL MULTIPLIER IMPACTS. AND SO THESE ARE THE MONEY SPENT BY THOSE DIRECT IMPACTS. THE SALARIES PAID DIRECTLY GO OUT INTO THE COMMUNITY AND THEY GET RE SPENT, AND THIS IS HOW THEY DO AN ECONOMIC IMPACT ON ANYTHING FROM HIGH SCHOOL STADIUM TO AN AIRPORT TO AN OFFICE BUILDING OR AMUSEMENT PARK. THEY DO THIS TYPE OF ASSESSMENTS STATEWIDE.

YOU CAN SEE THEY COMPLETED A 2011 STUDY AND THIS WAS A 2018 STUDIES. SO BASED ON THAT UM,

[01:45:03]

SO OVER THAT TIME FRAME WE THINK WE MAY HAVE DOUBLED WHAT WE WERE AT THAT TIME DIRECT CAPITAL INVESTMENTS AND THEN DIRECT VISITOR IMPACTS, BUT THE BOTTOM LINE FOR MCKINNEY NATIONAL AIRPORT IN 2018, IT WAS RESPONSIBLE FOR 993 JOBS. $64.3 MILLION IN PAYROLL. AND $212.7 MILLION IN TOTAL ECONOMIC OUTPUT. AND ONE OF THE QUESTIONS LEADING TO THIS PRESENTATION WAS HOW DOES THAT COMPARE WITH SOME OF OUR NEIGHBORING AIRPORTS TO SEE WHAT IMPACT THEY HAVE ON THEIR COMMUNITIES, SO YOU CAN SEE OUR NUMBERS SAME NUMBERS FROM THE PREVIOUS SLIDE. ACROSS THE TOP. ADDISON ACTUALLY GENERATES A LOT MORE ECONOMIC OR TOTAL EMPLOYMENT THAN MCKINNEY DOES BASED ON THE TYPES OF AIRCRAFT AND THE BUSINESSES LOCATED THERE, THEY GENERATE 3200 JOBS. THEIR TOTAL PAYROLL IS $147 MILLION, AND THEY HAVE A $467 MILLION TOTAL OUTPUT AND YOU CAN SEE DALLAS EXECUTIVE DENTON'S AIRPORT FORT WORTH MEDIUM AND FORT WORTH ALLIANCE, WHICH IS KIND OF A BIG PLAYER IN THE BUT NON PASSENGER SERVICE AIRPORTS IN THE REGION AND YOU CAN SEE THEIR TOTAL OUTPUTS OVER HALF A BILLION. THEN YOU START TO LOOK AT THE COMMERCIAL PASSENGER SERVICE AIRPORTS IN THE REGION AND THE FW, ONE OF THE LARGEST AIRPORTS IN THE WORLD, ONE OF THE BUSIEST AIRPORTS IN THE WORLD. IT'S RESPONSIBLE AND THIS IS ON AIRPORT JOBS, AS WELL AS ALL THE SPILLOVER JOBS ASSOCIATED WITH IT FOR OVER 240,000 JOBS. TOTAL PAYROLL OVER $9 BILLION AND TOTAL OUTPUT ALMOST $30 BILLION. I ASSUME IT'S PROBABLY GONE UP SIGNIFICANTLY SINCE THAT TIME SINCE THEIR GROWTH IS CONTINUING AND THEN LOVE FIELD DOWN IN DALLAS NEAR DOWNTOWN, YOU CAN SEE THE NUMBER 60,000 JOBS, ALMOST 2 BILLION IN PAYROLL AND 6 BILLION IN TOTAL OUTPUT, SO THESE ARE SOME OF THE ECONOMIC OUTPUT NUMBERS. THAT IS THE IMPACT ON THE OVERALL ECONOMY. BASED ON HAVING THESE AIRPORTS IN OUR REGION, AND BARRY MY, DON'T INTERRUPT. IF YOU CAN GO BACK, I BELIEVE, TELL ME IF I'M WRONG, I BELIEVE ALL THOSE AIRPORTS AT THE TOP ARE OWNED BY THOSE INDIVIDUAL MUNICIPALITIES. AIRPORTS AT THE BOTTOM. THE DFW IS OWNED BY DALLAS AND FORT WORTH AND NOBODY ELSE AND DALLAS LOVE IS OWNED BY THE CITY OF DALLAS AIRPORTS THAT ARE MUNICIPALLY OWNED. AND JUST LIKE MCKINNEY'S, YOU WILL FIND THAT ALMOST ALL AIRPORTS WHETHER THEY'RE G A OR COMMERCIAL PASSENGER SERVICE ARE OWNED BY THE MUNICIPALITY OR ANOTHER PUBLIC ENTITY. IF YOU'VE GOT A NEW YORK CITY AIRPORTS WILL BE OWNED BY THE PORT AUTHORITY, WHICH IS A PUBLIC ENTITY. ONGOING PROJECTS THAT WE'RE GETTING ON THE DOWNSLOPE TOWARDS THE END. I JUST WANT TO TALK ABOUT SOME OF THE PROJECTS THAT ARE ONGOING OR UPCOMING SO THAT WE CAN UNDERSTAND THE GROWTH AND SOME OF THE THINGS THAT HAVE COME UP RECENTLY FOR FUNDING. SO I'VE GOT THROUGH THESE IN A LITTLE MORE DETAIL ABOUT THE FBO TERMINAL OPEN. LIKE I SAID RUNWAY EXTENSION. THE MAINTENANCE BUILDING WE TALKED ABOUT, BUT WE'RE ALSO GONNA TALK ABOUT THE TAXIWAY ALPHA REHAB AND RELOCATION. THE CORPORATE IN HANGAR, WHICH WE TALKED ABOUT THE FUNDING WITH THE CEOS, THE U. S CUSTOMS BUILDING. THAT'S WITH THAT SERIOUS FACILITY. AND THEN THE TAXIWAY A FOUR BUILD OUT, AND THIS IS THE PROJECT.

THAT THE TERMS FUNDED BACK IN NOVEMBER. FBO TERMINAL HAVE TO SHOW OFF SOME OF OUR BEAUTIFUL PHOTOGRAPHS IT TOOK FOREVER. THIS IS A PROJECT THAT WOULD NEVER FINISHED, BUT NOW THAT IT'S FINISHED, IT IS A BEAUTIFUL FACILITY. IT IS FIRST CLASS. WE'VE GOT RAVE REVIEWS FROM OUR CUSTOMERS, AND IT'S UP AND RUNNING TODAY, UM BUT LIKE I SAID EARLIER, IT'S THE FRONT DOOR TO THE CORPORATE AND CHARTER PASSENGERS. THE RUNWAY EXTENSION, SO WE DID FINISH. UH LIKE I SAID IN 2011, WE FINISHED THE 7000 FT RUNWAY JUST THIS PAST SEPTEMBER, WE FINISHED 500 FT EXTENSION ON THE SOUTH END OF THE RUNWAY, WHICH IS MOSTLY FUNDED WITH THE TECH STOCK

[01:50:02]

SO THAT'S A BENEFIT OF GETTING THAT DONE WHILE WE HAD TO SHUT THE RUNWAY DOWN FOR PORTION WE'RE NOW MOVING OVER TO THE NORTH EXTENSION. IT'S A 500 FT EXTENSION. THIS IS A PROJECT THAT COLLIN COUNTY GRANTED $30 MILLION TO HELP US COMPLETE. THE REASON THEY DID. THAT IS INITIALLY WE HAD PLANNED FOR THE ENTIRE EXTENSION TO BE TO THE SOUTH. THE SOUTH IS FLAT. IT'S OPEN. IT'S EASY TO DEVELOP ON ITS CHEAP. THE PROBLEM WITH THAT IS BY BUILDING ALL THE WAY TO THE SOUTH. WE COULD NOT GET THE SPUR 399 ALIGNMENT AROUND THE AIRPORT AND KIND OF THREAD THE NEEDLE BETWEEN THE AIRPORT AND SOME PARKLAND. THAT THEY DIDN'T WANT TO CROSS. SO IT'S GOING TO OPEN UP THAT CORRIDOR AND WE'LL LOOK AT THAT ALIGNMENT HERE IN A BIT, BUT WE'RE LOOKING TO BREAK GROUND ON THAT HERE IN EARLY 2024, THE OTHER 500 FT ON THE NORTH SIDE, THE PROBLEM. THE REASON THIS IS EXPENSIVE AS THIS IS WILSON CREEK THAT WILSON CREEK SORRY, EAST FORK OF THE TRINITY AND SO THE LAND AS YOU GO OFF THE END OF OUR CURRENT RUNWAY. THE LAND JUST NATURALLY DROPS DOWN TO THE CREEK. AND IN DOING SO, THAT MEANS WE HAVE TO LEVEL THAT AND BRING A LOT OF FILL IN, AND THAT WAS THE ADDITIONAL COST, AND THE COUNTY STEPPED UP AND HELP US DO THAT, BECAUSE IT HELPED US WITH THE AIRPORT, WHICH THEY SUPPORT. BUT IT ALSO HELPS THEM WITH THEIR TRANSPORTATION PLANNING NEEDS THAT THEY'VE BEEN WORKING REALLY HARD ON. SO THE COUNTY IS HELPING US FUND THE RUNWAY, AND IT'S CURRENTLY A 7500 FT RUNWAY. STEEL REINFORCED CONCRETE. UH LAGUARDIA IS A 7000 FT RUNWAY. WE'RE AT 7500. IT'S PRETTY GOOD REASON TO GO. A LONGER RUNWAY IS WHY SO PRIMARILY THE REASON WE ARE EXTENDING OUR RUNWAY IS WE HAVE CORPORATE, UM BASED AIRCRAFT HERE. MCKINNEY THAT FLIGHT INTERNATIONAL WHEN A CORPORATE AIRCRAFT CALLED A GLOBAL 6000. GULFSTREAM WANTS TO FLY DIRECT FROM HERE TO ASIA FLY DIRECT FROM HERE TO EUROPE TO THE MIDDLE EAST. THEY HAVE TO TAKE ON FOR FUEL LOADS TO BE ABLE TO DO THAT NONSTOP. IN ORDER TO DO THAT, WHEN THEY ARE FULLY LOADED WITH FUEL ON AN X ON A HOT DAY LIKE WE HAVE IN THE SUMMER, IT REQUIRES MORE RUNWAY LENGTH. SO SOMEWHERE LIKE LAGUARDIA, THEY HAVE COMMERCIAL AIRCRAFT, BUT THEY DON'T FLY THOSE LONG HAUL INTERNATIONAL ROUTES FROM LAGUARDIA RIGHT, SO THEY DON'T HAVE TO TAKE ON THE FUEL AND THE WAY ASSOCIATED WITH THAT FUEL THAT SOME OF OUR CORPORATE JETS DO. THANK YOU. OH YES. I'VE BEEN INTERRUPTED YOU, BUT I MUST CURIOUS ABOUT THE. 2 FT. THE 7002 FT IN THE 7500 AND 2 FT. IS THERE SOME SIGNIFICANCE TO THE 2? FT I HAVE ASKED THAT QUESTION MYSELF. I DO NOT KNOW WHAT THE SIGNIFICANCE OF THE 2 FT. IF KEN WAS SITTING HERE WITH HIS BROKEN LEG, HE COULD PROBABLY HOP UP AND TELL US THE 2 FT IS FOR A B AND C QUALIFY US FOR EXTRA FEDERAL FUNDING. I HAVE NO IDEA ASSURANCE I DID. THIS IS COME UP BEFORE. IT WAS AN ASSURANCE THAT WE DID MEET THE 7000. IT WAS TO BE BEYOND ANY I DOUBT THAT WE HAD 7000 FT.

THANK YOU. WE DON'T WANT SOMEONE TO GET OUT AND MEASURE IT. YEAH YEAH, WHEN YOU'RE LOOKING AT THE TYPES OF AIRCRAFT AND THE REALITY IS OUR CORPORATE AIRCRAFT. THEY CAN TAKE OFF ON SHORTER RUNWAYS BUT FOR THEIR QUALIFICATIONS IN TERMS OF INSURANCE REQUIREMENTS FOR THEM TO OPERATE OFF OF CERTAIN FIELDS . THEY NEED TO MAKE SURE THEY HAVE THE LENGTH AND SO THAT PROBABLY PUTS US ABOVE THAT THRESHOLD AND MAKE SURE THAT WE DIDN'T FALL SHORT. THE WORST THING WE CAN DO IS BUILD A RUNWAY THAT DOESN'T SATISFY THE NEEDS OF OUR CORPORATE ENTITIES WHO ARE THERE. TAXIWAY ALPHA, SO THIS IS ACTUALLY ON TONIGHT'S CONSENT AGENDA. IT'S AH ITS AUTHORIZATION TO ACCEPT. GRANT GRANT DOLLARS FROM THE FAA FOR THIS PROJECT. SO THIS IS TAXIWAY ALPHA TAXIWAY OFFER IS THE WESTERNMOST. PARALLEL TAXIWAY. WE HAVE THE AIRPORT. IT WAS BUILT INITIALLY IN 1982. AND IF BEEN ADDED TO THAT TAXIWAY OVER THE YEARS. IT'S PROBABLY MORE CRACKS SEALED THAN IT IS PAVEMENT AT THIS POINT. SO IT NEEDED TO BE RECONSTRUCTED. BOTH BECAUSE OF THE SURFACE, BUT ALSO ONE OF THE NEW FAA REGULATIONS. THEY DO NOT WANT A DIRECT PATH.

FROM YOUR RAMP. DIRECTLY ON TO YOUR RUNWAY BECAUSE THAT LEADS TO PILOT ERRORS AND PEOPLE GOING OUT ONTO THE RUNWAY WITHOUT REALIZING IT, SO THEY LIKE TO HAVE TURNS IN THAT MOVEMENT, SO

[01:55:02]

THAT'S RIGHT NEXT TO OUR EXISTING COURT, 9 40,000 SQUARE FOOT HANGAR AND ELSEWHERE ON THE FIELD IS A CUSTOMS FACILITY. SO THIS IS A CUSTOMS FACILITY. THAT IS ONLY FOR AIRCRAFT. IT IS NOT A PORTION OF FUTURE COMMERCIAL OR ANYTHING RELATED TO COMMERCIAL. SO OUR TWO LARGEST CORPORATE ENTITIES, ONE HANGER IS RIGHT HERE ON THE PHOTO, THE OTHER ONES JUST OFF OF THIS PHOTO. THEY DO. A LOT OF OUR INTERNATIONAL FLIGHTS WERE LOCATING A RAMP AS WELL AS A CUSTOMS FACILITY BECAUSE THEY HAVE TO PROCESS THROUGH CUSTOMS JUST LIKE ANYONE ELSE DOES WHEN THEY COME FROM AN INTERNATIONAL ARRIVAL. SO LOOKING AT THE COST OF CONSTRUCTION. THIS DOES NOT INCLUDE DESIGN COSTS, BUT THE HANGAR ITSELF IS ABOUT $12.5 MILLION. WE ESTIMATE THE RENT AND FUEL SALES FOR THAT ANGER WILL BE $1.1 MILLION IN ITS FIRST YEAR. AND THEN THE CONSTRUCTION COSTS OF THE CUSTOMS BUILDING IS $5.2 MILLION . NOW, THIS IS A NON REVENUE GENERATING IMPROVEMENT. DIRECT REVENUE GENERATING. PORTION OF OUR AIRPORT, BUT IT'S SOMETHING THAT'S NECESSARY. CURRENTLY OUR CUSTOMS OFFICE OPERATES OUT OF OUR OLD OFFICE, FBO OFFICE BUILDING AND ULTIMATELY, THE FEDERAL GOVERNMENT SAID, IF WE DON'T BUILD A PROPER FACILITY THAT MEETS THEIR STANDARDS, THEY COULD CHOOSE TO STOP OFFERING CUSTOM SERVICES FROM MCKINNEY NATIONAL, AND THIS HAS BEEN A PROJECT THAT'S BEEN PLANNED FOR. SEVEN OR EIGHT YEARS, AND WE FINALLY CAME UP WITH A MECHANISM THROUGH OUR PARTNERSHIP WITH OUR GROUP THAT'S BUILDING THESE FOR US TO GET THIS BUILT, SO IT'S NECESSARY FOR INTERNATIONAL CORPORATE AND CHARTER ARRIVALS.

AND ALLOWS US TO KEEP THOSE TENANTS COMING TO MCKINNEY NATIONALS WHO'S PAYING FOR THE 5.2. SO THESE BOTH OF THESE PROJECTS ARE LUMPED TOGETHER, SO WE DID ISSUE CEO DEBT TO DO THESE PROJECTS AND THE REVENUE FROM THESE PROJECTS AND OTHER PROJECTS AT THE AIRPORT IS INTENDED TO FUND THE DEBT SERVICE FOR THAT. THE OTHER PROJECT THAT CAME UP IN NOVEMBER WAS TAXIWAY. A FOUR WHICH IS THIS TAXIWAY RIGHT HERE, SO IT'S THE CUSTOMS BUILDING SITS RIGHT

[02:00:05]

DPS STATE OF TEXAS AND THEIR FUNDS WILL GO TOWARDS BUILDING THIS AND THEN WE WILL ACTUALLY OWN THAT HANGAR OUTRIGHT, SO WE'LL CHARGE THEM FACILITY LEASE AND WE'LL CHARGE THEM. GROUND LEASES TOTAL TOTAL OVER $180,000 IN OUR ESTIMATED FUEL SALES WILL BE OVER $350,000 IN THE FIRST YEAR ONCE ALL OF THESE ARE BUILT, SO THAT'S WHY WE GO. AND ASKED FOR $2.8 MILLION TO BUILD A SMALL TAXI LANE BECAUSE IT GENERATES THOSE REVENUES AND ON TOP OF THOSE REVENUES, THE AIRCRAFT THAT THESE TWO ENTITIES ARE INTENDING TO PURCHASE WILL BE VALUED AT OVER $200 MILLION IN BUSINESS, PERSONAL PROPERTY TAXES. SO YOU SAW EARLIER WE CURRENTLY ON THE ENTIRE AIRPORT HAS 186 MILLION IN B P P. THESE HANGERS ALONE WILL GENERATE OVER $200 MILLION IN B P P NOW. THAT TRICK ABOUT BUSINESS, PERSONAL PROPERTY TAXES. THERE'S FORMULAS TO DETERMINE WHAT GETS PAID AT THE AIRPORT AND WHAT GOES ELSEWHERE IN. IT'S BASED ON WHERE IT'S BASED, AND HOW MUCH TIME IT SPENT HERE. BUT IT ALSO DEPRECIATES VERY QUICKLY. SO L START THOSE FIRST YEARS THEY WILL BE SKY HIGH. AND THEN IT'LL KIND OF COME DOWN OVER TIME. BUT THE VALUE OF THAT GOING INTO THE GENERAL FUND FROM THE TAXES PAID FROM THESE AIRCRAFT WILL BE SIGNIFICANT. ONE OF THE QUESTIONS I HAD FROM SOMEONE WAS . IS THIS PROJECT THIS TAXIWAY PROJECT ELIGIBLE FOR FEDERAL GRANTS TO OFFSET OUR EXPENSES PAID BY THE TOURS THAT THE ANSWER TO THAT IS IT IS ELIGIBLE , BUT IT WILL NOT COMPETE WELL. SO THESE ARE COMPETITIVE GRANT PROGRAMS. THE REASON IT DOESN'T COMPETE WELL ARE THERE ARE TWO THINGS THAT THEY LOOK AT THAT THEY DON'T LIKE TO SEE FOR FEDERAL GRANT. MONEY IS THE VERY FIRST ONE IS THEY WANT IT TO BE, UM NONREVENUE PRODUCING, SO YOU COULD SAY THIS TAXIWAY ITSELF IS NON REVENUE PRODUCING SO WE CAN CHECK THAT BOX. THE OTHER IS THEY LIKE TO SEE PUBLICLY ACCESSIBLE IMPROVEMENTS. AND BECAUSE THIS ONLY PROVIDES ACCESS TO THREE HANGARS. IT'S NOT NECESSARILY FULLY PUBLIC. NO ONE ELSE WILL USE IT, AND THAT'S WHY WE DON'T THINK IT WILL BE ELIGIBLE, BUT WE DON'T THINK IT WILL COMPETE WELL FOR GRANT FUNDS. ALL RIGHT. HOME STRETCH, I PROMISE SO, LOOKING AT AVAILABLE LAND. YES THAT LAST SLIDE. THE TWO PROJECTS WE VOTED ON IN NOVEMBER. WAIT IS SHE? UM C E. O S ON THAT CORRECT. THIS ONE WAS THE TOURIST FUNDING OF $2.8 MILLION, THE ONE BEFORE IT. THE COURT. 10 AND THE CUSTOMS WAS THE 24.5 THEY HAVE ANYTHING TO DO WITH THE MAY BOND ELECTION ? NOT AT ALL A IMPROVEMENTS IN OR NOT, AND CANNOT BE USED IN THE FUTURE FOR COMMERCIAL DEVELOPMENT. OR COMMERCIAL PASSENGER SERVICE DEVELOPMENT. AGAIN YOU'RE TALKING ABOUT $2.8 MILLION INVESTMENT THAT'S GOING TO NET. UM $530,000 A YEAR IN REVENUES, PLUS PROPERTY OF SCHOOL COUNTY COLLEGE TAXES ON INITIALLY $200 MILLION WORTH OF ASSETS, WHICH IS ABOUT 400 HOMES. CORRECT. MIGHT BE A BENEFIT TO THE CITY. SO JUST LOOKING AT AVAILABLE DEVELOPMENT, SO TO DATE.

EVERYTHING WE HAVE DONE ON THIS MAP WEST IS TO THE NORTH EAST TO THE SOUTH AND NORTH IS TO THE RIGHT. EVERYTHING WE HAVE DONE IS ALL GENERAL AVIATION RELATED. IT IS ALL LOCATED ON THE WEST SIDE OF THE AIRPORT. THE CROSS HATCHING YOU SEE, HERE ARE PROPERTIES THAT ARE AVAILABLE TODAY. ALTHOUGH THERE UNDER CURRENT DEVELOPMENT, SO THEY'RE EITHER UNDER CONSTRUCTION, LIKE THE SERIOUS LOCATION IS HERE. CUSTOMS BUILDING IS HERE, CORP 10 WILL GO HERE AND YOU JUST SAW WHAT WILL HAPPEN WITH TAXIWAY FOUR. THERE'S SOME OTHER PROJECTS IN THE WORKS ON THE REMAINING PROPERTIES THAT ARE CROSSHATCHED, SO THEY'RE PRETTY MUCH SPOKEN FOR. SO THAT LEAVES US ONLY 11 ACRES OF AVAILABLE DEVELOPMENT WILL LAND ON THE WEST SIDE OF THE AIRPORT. SO THIS IS SOMETHING THAT WE NEED TO BE LOOKING TO FOR THE FUTURE, AND THAT'S WHY THE CITY BACK IN 2018 WENT OUT AND BOUGHT THE EAST SIDE PROPERTY. SO WHEN WE LOOK AT THAT, AND WE LOOK AT WHAT'S REASONABLY DEVELOP HERBAL FOR AVIATION RELATED USES OF WHATEVER KIND THIS IS WHAT WE'RE LOOKING AT. 123 ACRES 11 ACRES REMAINING OVER HERE. 123 ON THE EAST SIDE. THAT WOULD BE THE FUTURE FOR THE DEVELOPMENT OF MCKINNEY NATIONAL AIRPORT. ON TOP OF THAT WE HAVE THE SPUR 399 EXTENSION. UH SO WE'RE BACK TO NORTH BEING UP AGAIN. THIS EXTENSION IS GOING TO PROVIDE

[02:05:07]

THIS IS GOING TO OPEN UP ACCESS, WHICH OPENS UP VALUE AND PEOPLE WILL DEVELOP THE PROPERTIES. AND THIS ACTUALLY, WHEN I DID THIS AH, THIS IS AN OLDER ARIEL. THIS IS ACTUALLY ALREADY DEVELOPED RIGHT HERE FOR SOME WAREHOUSE SPACE, SO THE DEVELOPMENT IS ALREADY STARTING TO OCCUR, AND THAT WAS THE IMPORTANCE OF BUYING THAT LAND ON THE EAST SIDE. SO LAST SEGMENT HERE, I ADDED, SOME FREQUENTLY ASKED QUESTIONS TO MAKE SURE THAT WE TOUCHED ON SOME OF THE QUESTIONS THAT WE COMMONLY HEAR OR MISCONCEPTIONS. THE FIRST IS, WHAT IS THE GROUND LEAST WE TALKED ABOUT THAT, BUT THAT'S WHERE WE LEASE LAND TO AN ENTITY THAT BUILDS PRIVATE.

IMPROVEMENTS ON THE AIRPORT. THEY HAVE TO BE AERONAUTICAL IN NATURE. THEY PAY RENT AND LIKE I SAID EARLIER, IT'S TYPICALLY A 40 YEAR LEASE, AND THEN THE OWNERSHIP OF THE IMPROVEMENTS REVERT TO THE CITY OWNERSHIP AFTER THAT. A QUESTION. WE GET A LOT OF ITS DO ALL THE AIRPORT REVENUES HAVE TO STAY AT THE AIRPORT AND THE ANSWER TO THAT ARE DIRECT AIRPORT REVENUES FROM SERVICES, FUEL SALES, PASSENGER TICKETS, WHATEVER THE CASE MAY BE, ARE REQUIRED TO STAY AT THE AIRPORT. AND THEY FUND THE. CAPITAL OR OPERATING COSTS OF THE AIRPORT. THEY CAN BE USED TO REIMBURSE DEBT. SO IF YOU ISSUED DEBT ON A TAXIWAY OR CORP TIN HANGER. YOU CAN USE AIRPORT PROFITS TO FUND THOSE DEBT PAYMENTS. THE OTHER QUESTION WAS . DO ALL PROPERTY TAXES HAVE TO STAY ON THE AIRPORT? WE TALKED ABOUT THIS THAT REAL PROPERTY TAXES ARE CAPTURED. INCREMENTAL TAXES ARE CAPTURED BY THE TOURS, BUT THE BUSINESS PROPERTY BUSINESS. PERSONAL PROPERTY TAXES ARE NOT CAPTURED. WHAT TYPE OF PROJECTS ARE ELIGIBLE FOR FEDERAL GRANT REIMBURSEMENTS OR IN SOME CASES THERE, UH, FUNDED IN ADVANCE LIKE OUR TAXIWAY. THAT WE'RE GOING TO TALK ABOUT ON THE CONSENT TONIGHT. RUNWAY TAXIWAY APRON CONSTRUCTION, AIRFIELD ISSUES, LAND ACQUISITION, SO THE LAND THAT WE ACQUIRED ON THE EAST SIDE. IT DID NOT USE FEDERAL FUNDS. BUT AS WE UTILIZE IT FOR AERONAUTICAL USES IF WE PUT A HANGAR THERE, OR RAMP SPACE OR TAXIWAYS, THOSE ACRES AS WE USE THEM ARE ELIGIBLE TO BE REIMBURSED FOR THE PURCHASE PRICE. UM NAVIGATIONAL AIDS AND THEN PLANNING ENVIRONMENTAL STUDIES. GENERALLY AND I WILL SAY THAT I DID SOME QUICK MATH TO THROW THIS SLIDE ON HERE TO MAKE SURE WE TALKED ABOUT IT AND WHAT REVENUE HAS BEEN GENERATED BY THE AIRPORT SINCE THE ACQUISITION OF THE FBO WHEN YOU LOOK AT THE REVENUES FROM EACH BUDGET YEAR SINCE 2013 $94 MILLION HAVE BEEN GENERATED IN REVENUE FOR THE AIRPORT AND FBO, THE AIRPORT DURING THAT SAME PERIOD HAS INCURRED JUST UNDER 92 MILLION AND NON DEPRECIATION EXPENSES IN THE SAME PERIOD. SO WHEN YOU ADD DEPRECIATION, IT DOES SHOW A NEGATIVE BALANCE. A LOT OF THE IMPROVEMENTS THAT WE MAKE AT THE AIRPORT OR INVESTMENTS IN HANGAR OR A TAXIWAY AND THE REVENUE COMES IN OVER MANY YEARS, SO SOME OF THEM ARE YEAH. DO COME ACROSS AS LARGE EXPENSES. ONE TIME HITS, BUT THE REVENUE OVER GENERALLY 10 OR SO YEARS. WE LOOK TO MAKE SURE THAT WE CAN PAY FOR THOSE IMPROVEMENTS. PRIOR THE YEAR BEFORE WE ACQUIRED THE FBO, THE AIRPORT GENERATED $1.2 MILLION IN REVENUE. LAST YEAR. IT GENERATED $14.7 MILLION IN REVENUE SO YOU CAN SEE THE INCREASE THE FIRST YEAR AFTER ACQUISITION. IT JUMPED FROM 1.2 MILLION TO AROUND $5 MILLION IN REVENUE, SO THAT FBO PURCHASE WAS A BIG JUMP. BUT EVEN SINCE WE'VE DONE THAT, WE'VE INCREASED THE REVENUES COMING OFF THE AIRPORT SIGNIFICANTLY. LOTS OF TEXT ON HERE. THIS IS AN ITEM. WE MIGHT COME BACK ON A LATER DATE FOR MORE DEPTH, BUT WHAT FEDERAL FUNDING IS AVAILABLE TO THE AIRPORT, SO THERE'S A COUPLE OF PROGRAMS. SO THE AIRPORT IMPROVEMENT PROGRAM THE A. I P TEXT ON HERE IS STRAIGHT FROM THE FAA WEBSITE, BUT GENERALLY IT FUNDS AIRPORT INFRASTRUCTURE PROJECTS AS LISTED UP THERE, THEY'RE ADMINISTERED TO PUBLIC USE AIRPORTS THAT ARE INCLUDED IN THE NATIONAL PLAN FOR INTEGRATED AIRPORT SYSTEMS. OR THE NIPPY IS FOR US TO BE ELIGIBLE. WE HAVE TO BE AN AIRPORT THAT'S PART OF THE NATIONAL SYSTEM. AH IN 2023, THE FAA AWARDED $3.2 BILLION IN A I P GRANTS. THE GRANTS COME IN TWO TYPES. THE FIRST STAR ENTITLEMENT FUNDS. THESE ARE

[02:10:03]

THERE WERE WELL ABOUT 10,000 EMPLOYMENTS. THEY'RE JUST NOT REPORTED. THE OTHER SIDE OF THE I P PROGRAM OR DISCRETIONARY FUNDING OPPORTUNITIES. SO THESE ARE THE COMPETITIVE GRANT PROGRAMS WHEN WE COME TO YOU AND SAY, HEY, WE GOT $6.7 MILLION TOWARDS A PROJECT IN A I P FUNDS. IT'S GOING TO BE THESE DISCRETIONARY FUNDS. WE APPLY FOR THEM AS THEY COME AVAILABLE.

BUT THEY ARE VERY COMPETITIVE AND THEY LIKE TO FIND LIKE I TALKED ABOUT THOSE PUBLIC IMPROVEMENTS, TAXIWAYS, RUNWAYS AND THINGS LIKE THAT THE OTHER FUNDING THAT'S AVAILABLE RIGHT NOW AND ONCE AGAIN. THIS WAS PART OF THE I J A ALSO REFERRED TO AS A BIPARTISAN INFRASTRUCTURE BILL. I ALLOCATED AN ADDITIONAL $5 BILLION TO PROVIDE COMPETITIVE GRANTS TO AIR PORTS TERMINALS SO UNTIL 2026. THIS IS AN OPPORTUNITY, BUT IT'S PRIMARILY FOR COMMERCIAL TERMINAL PROJECTS. AND THEN LAST QUESTION I HAVE, I BELIEVE IS IF THE CITY DECIDED TO SELL THE AIRPORT. WHAT COULD WE DO? SO THE CITY COULD SELL THE ENTIRE FBO. WE COULD TAKE ALL OF THE ASSETS PACKAGE THEM UP BUSINESS ALONG WITH ALL THE BUILT ASSETS, AND WE COULD DETERMINE WHAT THE MARKET VALUE IS, AND WE COULD GO OUT TO THE MARKET AND SAY WHO WANTS TO BUY IT? AND WE BELIEVE IT WOULD BE VERY ATTRACTIVE RIGHT NOW. THE FBO IS CARRYING. DEBT FROM A LOT OF THE ISSUES FROM THE INITIAL PURCHASE AND SOME OTHER THINGS, WHICH WE COVER THE ANNUAL COSTS BUT THAT WOULD BE FACTORED INTO THE MARKET VALUE, SOMETHING WE COULD CHOOSE TO DO IS RIGHT NOW THE RIGHT TIME TO DO THAT. THAT'S A DISCUSSION FOR ANOTHER DAY, WHEN WOULD BE THE RIGHT TIME? IF EVER TO DO THAT? THAT'S SOMETHING WE COULD TALK ABOUT. UM WHAT WOULD HAPPEN UNDER THAT SCENARIO IS THE FBO WOULD GO BACK TO A PRIVATE ENTITY AND THE AIRPORT WOULD GO BACK TO WHAT WE USED TO BE. WE WOULD LEASE THE GROUND TO THE PRIVATE ENTITY AND OUR REVENUES WOULD GO WAY DOWN, BUT OUR EXPENDITURES WILL GO DOWN AS WELL. THE OTHER THING IS THERE THERE ARE POTENTIAL OPPORTUNITIES TO SELL OFF ASSETS . IF WE BUILD CORP 10 AND IT'S A GREAT ASSET, AND IT'S GENERATING REVENUE, IT COULD BE SOMETHING THAT WE WOULD CHOOSE TO TURN AROUND AND SELL IT TO THE OPEN MARKET, AND THAT PERSON WOULD LEASE THE GROUND. OPERATE THE TERM THAT NOT TERMINAL THE HANGAR NOW ONE OF THE THINGS WE WANT TO BE VERY CAREFUL ABOUT IS RIGHT NOW BECAUSE WE LEASE THE MAJORITY OF THE HANGERS. WE DO A MARKET STUDY TO UNDERSTAND THE RENT RATES THE LEAST RATES WE WOULD NOT WANT TO BRING IN A PARTNER BY SELLING THEM HANGER THAT THEY COULD UNDERCUT. OUR LEASE RATES AND CAUSE HARM TO OUR REVENUE SOURCES FOR THE REMAINING IT'S COMPLICATED, BUT THERE ARE SOME OPTIONS THE AIRPORT ITSELF IN TALKING THROUGH IT WITH KEN. THERE'S REALLY NOT A REASONABLE EXPECTATION OR OUTLOOK THAT WOULD EVER SAY WE COULD EVEN ATTEMPT TO SELL THE AIRPORT WHERE THE AIRPORT SPONSOR THE F A TYPICALLY REQUIRES A LOT OF THINGS TO HAPPEN IF THAT WERE TO OCCURRING, INCLUDING POTENTIALLY PAYING BACK GRANT FUNDS THAT HAVE BEEN ISSUED OVER MANY, MANY YEARS BECAUSE WE WOULD B. DAMAGING THEIR NATIONAL SYSTEM

[02:15:05]

OR OR APPROVING FUNDS FROM THE TOURS ON THAT LAST MEETING BACK IN NOVEMBER THAT THE ONLY EXPLANATION MIGHT BE THAT THERE'S CORRUPTION. HOPEFULLY NOW THAT SAME PERSON MIGHT LOOK UP THERE AND SAY THAT THERE ARE SEVEN PEOPLE UP HERE THAT LOOKED AT WELL, IT WAS THE SAME SEVEN PEOPLE ON THE TOURIST BOARD. PLUS ANOTHER PERSON LOOKED AT, FOR EXAMPLE, THAT THE ONE TAXIWAY AND WE SAW AN OPPORTUNITY TO SPEND $2.84 MILLION FOR AN ANNUAL INCOME OF $530,000 AND THE SITUATED $200 MILLION OF ASSETS THAT WOULD PAY TAXES. SCHOOL TAX PROPERTY TAX, COLLEGE TAX COUNTY TAX, IT MIGHT BE AND I'LL TELL YOU I'LL STOP BEING HYPOTHETICAL. IT WAS THE REASON WHY WE MADE THE DECISION TO DO THAT, BECAUSE IT MADE FINANCIAL SENSE AS AS WAS STATED . WE HAVE A FIDUCIARY RESPONSIBILITY IN THAT AIRPORT. UM THIS IS A THIS IS AN ASSET OF THE CITY THAT IN MANY WAYS, BENEFITS THE ENTIRE COMMUNITY NOT JUST ON TAXES PAID. EVEN THOSE FUNDS THAT STAY REVENUES THAT STAY ON THE AIRPORT. IT'S AN ASSET ON THE CITY'S BALANCE SHEET PLAYS A LARGE PART AND EVERYTHING FROM OUR BOND RATING TO JUST WHO WE ARE AS A CITY IN THE ECONOMIC IMPACT THAT IT HAS CURRENTLY WAS WHAT YEAR WITH THE $212 MILLION ANNUAL ECONOMIC IMPACT, IT WAS DETERMINED TO HAVE NEXT TIME 2018 ARE GUESSES. IT'S CONSIDERABLY MORE THAN THAT. TODAY I WAS WEARING $2018, AND WE ALL KNOW WHAT THE BUT THOSE DOLLARS ARE TODAY. BUT THAT'S THE REASON WE MAKE DECISIONS. IT'S NOT. IT'S NOT CORRUPTION. IT'S NOT SECRETLY OWNED LAND AROUND THE AIRPORT. WHICH IS GREAT FICTION READING, BUT IT'S JUST NOT THE REASON WE MAKE DECISIONS BASED ON DOLLARS AND CENTS PERIOD. VERY CONNECTED , CLARIFY ONE THING PATRICK MENTIONED THAT IF WE SOLD THE FBO, THEN IT BECOMES A TAX BLASTED. BUT IT WOULD HAVE TO COMPETE RIGHT? BUT WE I MEAN, THEORETICALLY, WE CAN'T SELL THE AIRPORT. WE CAN ONLY TELL THE FBI DANCE DOWN THAT ROUTE. THAT'S WHAT I SAID. OKAY? BECAUSE THE OTHER AIRPORTS HAVE FBO S THAT ARE PRIVATELY OWNED AS WELL. THAT IS CORRECT. SO WHEN YOU LOOK AT ADDISON, THEY HAVE MULTIPLE PRIVATELY ON IT. F B O S UM YEAH, INDEED DIDN'T DOES AS WELL AND ULTIMATELY WHAT ONE OF THE. INTANGIBLE BENEFITS OF US OWNING THE FBO. IS THAT WE CAN CONTROL AND CREATE BALANCE IN THAT DEVELOPMENT SO THAT IT DOES ULTIMATELY END UP IN A WAY. THAT BENEFITS THE MCKINNEY TAXPAYER THAT BENEFITS THE MECHANICS CITIZEN, AND SO THERE IS. THERE'S VALUE IN OWNING AND CONTROLLING THE FBO THE WAY THAT WE HAVE THAT YOU DON'T SEE NECESSARILY IN A FINANCIAL MODEL. UM, I WOULD AGREE. I THINK JUST ANECDOTALLY FROM THE TIME WE BOUGHT THE ASSETS, THE DECISIONS THAT WERE MADE AT THE AIRPORT. CHANGE SIGNIFICANTLY BECAUSE THEY'RE BEING MADE WITH THE COMMUNITY IN MIND VERSUS A PRIVATE ENTITY MAKING DECISIONS BASED ON BOTTOM LINE FOR THAT PRIVATE ENTITY. YEAH, WELL, WE'RE STILL MAKING SOUND DECISIONS. THEY DO HAVE A DIFFERENT SET OF STAKEHOLDERS CORRECT. MARY. I WANTED TO TAG ON SOMETHING THAT THE MAYOR WAS

[02:20:03]

K ABOUT IN GENERATIONS TO COME. AND WE DIDN'T LIKE I WANTED TO MAKE THAT POINT BASED ON SOME THINGS THAT GEORGIA SAID, BUT VERY IMPORTANT THING, AND YOU SHOWED UP SLIDE OF IT. BUT WHAT DO WE REALLY CALLED TAXIWAY C OUT THERE? SO WHEN WE TALK ABOUT . DEVELOPMENT OF THE EAST SIDE OF THE AIRPORT. SO RIGHT NOW WE OWN LAND. IT'S THIS PORTION PLUS THIS LITTLE PANHANDLE HERE. IT'S GREAT PROPERTY THERE. YOU CAN SEE THE INDUSTRIAL COMING IN SO WATER AND SEWER AND STREETS ARE THERE THERE. AERONAUTICAL INFRASTRUCTURE IS LACKING. SO TAXI WAIT. CHARLIE ULTIMATELY ALWAYS ASKING FOR NOT TEXT NOT TAXIWAY, GEORGE. ALRIGHT SORRY.

I THOUGHT IT WAS A LEGITIMATE QUESTION. SORRY I WAS GIVEN A LEGITIMATE AND GO ALL IN. ONE MORE QUICK QUESTION. CAN YOU SPEAK TO THE NUMBER OF FLIGHTS ON AVERAGE? WE HAVE GOING HOW ARE COMING IN MIKE. IT'S A IT'S AN ACTIVE. YEAH, IT'S OVER 400 A DAY. YEAH, AND THOSE ARE OPERATIONS SO THAT INCLUDES TOUCH AND GO, BUT PROBABLY ON A NORMAL DAY OUT THERE. WE WILL HAVE 22 30. JET OPERATIONS LIKE. TRANSIT JETS, CORPORATE JETS AND THOSE TYPE OF THINGS. A LOT OF THE 400 WILL BE YOUR UM, PERSONAL AIRCRAFT. YOU DIDN'T TOUCH ON ALL OF THE DETAILS ABOUT THE AIRPORT, BUT YOU COVERED JUST A HUGE, HUGE UNDERTAKING OUR SO CONGRATULATIONS ON GETTING ALL THAT INFORMATION TO US AND TO THE PUBLIC AT LARGE. IT WAS A HUGE UNDERTAKING. AND I VERY MUCH APPRECIATE ALL THE HARD WORK YOU PUT INTO YOUR PRESENTATION HAVE TO RECOGNIZE KEN AND HIS TEAM. SO A LOT OF THE DATA THE NUMBERS THE REVENUES, THE EXPENSES ARE GENERATED OR DRIVE FROM THEIR WORK HIS TEAM OUT OF THE AIRPORT , BUT ALSO THE FINANCE TEAMS HELP ME WITH THIS AS WELL. SO I DON'T WANT TO STAND UP HERE AND TAKE FULL CREDIT THAT I DID EVERYTHING IN HERE, BUT I KIND OF DID EVERYTHING IN THEIR HUGE UNDERTAKING. THANK YOU WANNA JUST COMMENT THAT THIS INFORMATION? THIS VIDEO, OF COURSE, WILL BE OUT THERE AND PERPETUITY. UM THE INFORMATION IS ON THE WEBSITE. AND NOW AVAILABLE TO EVERYONE, AND WILL BE, UH INTO THE INTO THE FUTURE. I'M JUST GONNA MAKE ONE LAST STATEMENT IN THE IN THE, UH SPIRIT OF TRANSPARENCY THAT WAS TALKED ABOUT A COUPLE OF TIMES.

I'VE SAID IT, MAMA SAY IT AGAIN BECAUSE I EVERY EVERY TIME SOMEONE COMES UP AND MAKES A STATEMENT. THAT UM VOTERS TOLD US NO, THEY DON'T WANT THE AIRPORT. BE VERY CLEAR. I'LL SPEAK JUST FOR MYSELF. THAT'S NOT AT ALL WHAT THE VOTERS SAID. THAT'S NOT HOW I INTERPRET WITH THE VOTERS SAID THE VOTER SAID VERY SPECIFICALLY. THAT THEY DO NOT AUTHORIZED THE ISSUANCE OF $200 MILLION WORTH OF DEBT. WHICH FOR WHICH THE MUNICIPALITY WILL. WILL IMPOSE A TAX EFFICIENT TO PAY THE DEBT AND INTEREST WORDING WAS SOMETHING LIKE THAT. I'M PARAPHRASING, BUT THAT'S PRETTY ACCURATE. AND UNDERSTANDABLY, THERE WAS A NUMBER OF PEOPLE THAT VOTED THAT THEY DID NOT WANT TO ISSUE $200 MILLION OF DEBT. FOR WHICH THEY INTERPRETED THE CITY WOULD IMPOSE A TAX SUFFICIENT TO PAY THAT THAT IS WHAT WAS VOTED. UM, I AM COMMITTED TO EXPLORING WHAT IT WHAT IT MIGHT MEAN FOR COMMERCIAL PASSENGER SERVICE, MCKINNEY NATIONAL AIRPORT. UM IN

[02:25:01]

OBVIOUSLY. UM, BUT WE WILL BE DISCUSSING THAT AS WE MOVE FORWARD, DOES IT MAKE SENSE? HOW DOES IT MAKE SENSE? WHAT IS THE IMPACT? UM SO JUST IN FULL TRANSPARENCY, I'M GOING TO BE CRYSTAL CLEAR. I'M NOT ONE TO RIDE THE FENCE OR OR BE SILENT. WHEN I HEAR THOSE STATEMENTS, I'M GOING TO SAY EXACTLY WHERE I'M AT ON IT SO THERE'S NO MORE QUESTIONS. THEN I'M GOING TO SKIP COMMENTS FOR NOW. WE'LL SAVE THEM FOR LATER BECAUSE WE HAVE EXECUTIVE SESSION. AND

[EXECUTIVE SESSION]

SURVEYS WITH 200 ACRES OF LAND LOCATED GENERALLY ON FM, 546 AND WITHIN THE CALVIN BALLS AND W.

D. THOMPSON. SURVEY SECTION 5517 TO DIP LIBERTY IMMIGRATION ABOUT REAL PROPERTY. MISERABLE FACILITIES. DOWNTOWN CITY ON PROPERTY REDEVELOPMENT. 23-38 R F Q SECTION 55187 DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT MATTERS. CHAPTER 380 DEVELOPMENT PROGRAM. AN AGREEMENT WITH RAYTHEON COMPANY CRAIG RANCH HOTEL LLC PROJECT BLUE SKY PROJECT HEMISPHERES PROJECT VIBES AND THERE IS ONE ITEM WILL HAVE ACTION. AFTER EXECUTIVE SESSION.

[ACTION ON EXECUTIVE SESSION]