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YOU. DID YOU HAVE TO HIT SOMEBODY? HIT ME. I'M RICK FRANKLIN. I'M THE CHAIRMAN. VICE
[CALL TO ORDER]
CHAIRMAN FOR THE REINVESTMENT ZONE NUMBER TWO BOARD. I HEREBY CALL TO ORDER THE REINVESTMENT ZONE NUMBER TWO BOARD MEETING. FIRST ITEM IS PUBLIC COMMENTS ON AGENDA ITEMS. IS THERE ANYBODY HERE TO SPEAK? HAVING NONE. OUR FIRST ITEM IS 20 5-271 THREE MINUTES OF THE TAX INCREMENT[Minutes of the Tax Increment Reinvestment Zone Number Two (TIRZ2) Board Meeting of March 31, 2025]
REINVESTMENT ZONE. NUMBER TWO BOARD MEETING OF MARCH 31ST, 2025. ANYBODY HAVE ANY QUESTIONS ON THE MINUTES? YEAH. THERE'S ACTUALLY TWO THINGS THAT NEED TO BE UPDATED ON THE MINUTES. THIS IS MAY 31ST AT THE TOP. THE MINUTES SHOULD ACTUALLY BE FOR MARCH. AND ALSO DOWN INSIDE IT SAYS FOR THE MEETING OF MAY 7TH, WHICH IS TOMORROW SHOULD SAY MARCH 7TH. OKAY. SO A COUPLE EDITS. THANK YOU. DO I HAVE A MOTION? SO MOVED. MOVED TO SECOND WITH THE AMENDMENTS WITH THOSE CHANGES. OKAY. SECOND I HAVE A MOTION BY MAYOR FULLER AND A SECOND BY COUNCILMAN PHELPS. COUNCILWOMAN FELTUS. PLEASE CAST YOUR VOTES. FANCY. THAT. MOTION PASSES 7 TO 0,[Conduct a Public Hearing to Consider/Discuss/Act on a Request by the City of McKinney for TIRZ Funding for the McKinney National Airport Project AI2250, McKinney National Airport Eastside Infrastructure Project; and Accompanying Resolution]
RIGHT, ZERO. NEXT ITEM IS 20 5-2714. CONDUCT A PUBLIC HEARING TO CONSIDER, DISCUSS. ACT ON A REQUEST BY THE CITY OF MCKINNEY FOR TRS FUNDING FOR THE MCKINNEY NATIONAL AIRPORT PROJECT. A12250 MCKINNEY NATIONAL AIRPORT EAST SIDE INFRASTRUCTURE PROJECT AND ACCOMPANYING RESOLUTION. GOOD EVENING. MEMBERS OF THE TRS BOARD BARRY SHELTON, ASSISTANT CITY MANAGER WITH THE CITY OF MCKINNEY. I'M HERE TO GIVE A BRIEF PRESENTATION AND MAKE A REQUEST OF THE TRS BOARD FOR FUNDING FOR THE EASTSIDE INFRASTRUCTURE PROJECT AT MCKINNEY NATIONAL AIRPORT. SO IN LOOKING AT THE FUNDING OPPORTUNITIES OR OPTIONS FOR BUILDING THE INFRASTRUCTURE TO SERVICE THE EAST SIDE OF THE AIRPORT, WE WERE GOING BACK INTO THE HISTORY OF THE TRS. IT WAS ADOPTED IN SEPTEMBER OF 2010 AND PULLING THE PROJECT PLAN FROM THAT MEETING. THAT HAS BEEN ADOPTED FOR THE TRS. IT REALLY TALKS ABOUT THREE PROPOSED IMPROVEMENTS OR USES OF FUNDS FOR THE TRS DISTRICT, AND THEY'RE LISTED HERE. FIRST IS FOCUS ON BUSINESS AVIATION.ACTIVITY NUMBER TWO IS TO CONTINUE TO ASSESS PERIMETER ACCESS CONTROL AND AIRPORT SECURITY. NUMBER THREE WAS TO CONTINUE TO PREPARE FOR COMMERCIAL PASSENGER SERVICE.
POINT BEING THAT AS FAR BACK AS 2010 AT THE CREATION OF THE TRS, THE REASON FOR THE TRS BEING CREATED BY THE COUNCIL AT THAT TIME WAS TO PROMOTE THE GROWTH AND DEVELOPMENT OF MCKINNEY NATIONAL AIRPORT. AT THAT TIME, I BELIEVE IT WAS COLLIN COUNTY REGIONAL AIRPORT. IT'S BEEN RENAMED A COUPLE TIMES. TODAY IT'S MCKINNEY NATIONAL. THE PROJECT PLAN GOES ON TO SAY THE KEY TO THESE INITIATIVES WILL BE INVESTMENT IN AIRPORT RELATED PROJECTS, I.E. AIRPORT FACILITIES AND RELATED SERVICES, PUBLIC INFRASTRUCTURE AND LAND ACQUISITION. SO THE TRS HAS BEEN USED FOR A COUPLE DIFFERENT PROJECTS IN THE PAST, ONE BEING. MOST RECENTLY, FUNDING WAS APPROVED BY THE TOURISM BOARD FOR TAXIWAY A4, WHICH OPENED UP A TRACT OF LAND ON THE WEST SIDE OF THE AIRPORT THAT ALLOWED FOR THREE DEVELOPMENT SITES, ONE OF WHICH IS ALREADY OCCUPIED BY ENCORE WIRES NEW HANGAR THAT WAS OPENED EARLIER THIS YEAR. ANOTHER PROPERTY IS A LARGE TRACT FOR ONE OF OUR EXISTING TENANTS, WHO IS GOING TO BE EXPANDING THEIR FLEET AND IS GOING TO BUILD A PRIVATE HANGAR ON AIRPORT GROUNDS AND WILL BE BECOME A GROUND LEASE TENANT RATHER THAN A FACILITY RENTAL TENANT. AND THE THIRD IS FOR THE DPS SITE. PRIOR TO THAT, BACK IN 2018, THE TRS BOARD FUNDED THE ACQUISITION, PARTIALLY FUNDED THE ACQUISITION OF THE EASTSIDE PROPERTY THAT WE'RE TALKING ABOUT TODAY. SO THAT PROPERTY WAS PURCHASED BACK IN 2018 WITH THE INTENT ON FIRST PURCHASING THE PROPERTY SO THAT WE CAN CONTROL THE LAND USES ADJACENT TO OUR RUNWAY, BUT ALSO IT'S THERE FOR THE FUTURE DEVELOPMENT OF THE EAST SIDE OF THE AIRPORT FOR AERONAUTICAL USES. SO KIND OF THE CONSTRUCTION MANAGER AT RISK THAT YOU'RE GOING TO SEE
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TONIGHT. AND THIS KIND OF SPEAKS TO THE CONSTRUCTION CONTRACT THAT WE'RE GOING TO SEE ON THE CITY COUNCIL AGENDA. YOU CAN SEE WHERE WE ARE ON THE TIMELINE TONIGHT. WE'RE GOING TO BE ASKING FOR COUNCIL APPROVAL OF THE CITY MANAGER, CONSTRUCTION MANAGER AT RISK CONTRACT WITH SWINERTON. SO THE SITE, AS WE ARE PROPOSING, ON THE EAST SIDE OF THE RUNWAY, YOU CAN SEE HERE WITH FOUR AIRCRAFT PARKING LOCATIONS, FOUR GATE POSITIONS, DEICING IN LINE, A FUEL FARM, EMPLOYEE LOTS, RENTAL CAR LOTS, A TERMINAL FACILITY BUILDING AND THEN THE OTHER LANDSIDE INFRASTRUCTURE, THE DRIVEWAYS, THE PARKING LOTS AND THE ASSOCIATED UNDERGROUND UTILITIES. THIS IMAGE HERE IS ZOOMED OUT A LITTLE BIT JUST TO TALK ABOUT WHAT WE'RE ACTUALLY LOOKING TO FUND HERE. SO WITH THIS WE CALL IT ENABLING INFRASTRUCTURE FOR THE EAST SIDE OF THE AIRPORT. THE REASON WE CALL IT THAT IS BECAUSE NOT ONLY IS IT ENABLING THE PROJECT THAT'S GOING TO BE ACTED ON BY THE CITY COUNCIL TONIGHT, IT ENABLES DEVELOPMENT OF AERONAUTICAL USES ALL ALONG THE EAST SIDE OF THE AIRPORT. SO THIS IS THE FIRST STEP THAT WILL HELP US MAKE THAT LEAP ACROSS TO THE OTHER SIDE OF THE PROPERTY AND CONTINUE THE GROWTH AND DEVELOPMENT OF THE AIRPORT PROPERTY. YOU CAN SEE PROPOSED WATER LINES, SANITARY SEWER LINES, FIBER OPTIC LINES, AS WELL AS UNDERGROUND UTILITIES, FRANCHISE UTILITIES THAT WOULD BE SERVING THE SITE AND OPENING UP ADDITIONAL DEVELOPMENT ON THE EAST SIDE. LOOKING AT THE PROJECT COSTS, SO CAN I ASK A QUESTION WHILE YOU HAVE THAT? OH YEAH. ABSOLUTELY. ON THAT LAST SLIDE. YES. IS THAT ACTUALLY INSIDE THE BOUNDARY? SO EVERYTHING ON THIS IS ON THE TOURS INSIDE THE TOURS BOUNDARY. AND BECAUSE IT DIDN'T LOOK LIKE IT BASED OFF THE MAP YOU HAD PREVIOUSLY. SO I WILL I'M GOING TO DRAW ON HERE AND SEE IF IT WORKS. SO OUR TOURS BOUNDARY KIND OF DOES THAT. AND KIND OF THERE'S A PANHANDLE THAT KIND OF COMES DOWN TO THE SOUTH RIGHT HERE. AND I'LL GO BACK TO SHOW NOTHING WAS SHOWING UP ON THAT SCREEN. IT BRIEFLY WENT, THERE IT IS. NOW IT'S ON THE SCREEN. OH THERE IT IS. OKAY. SO OUR PROPERTY. LET'S SEE I'M GOING TO CLEAR OUR PROPERTY CURRENTLY IS IT JUST TAKES A WHILE. I SEE IT ON MY SCREEN BUT APPARENTLY IT'S STARTING TO COME. OKAY I SEE THAT. I SEE THAT NOW. SO THAT IS WHERE OUR PROPERTY LIES. SO BACK IN 2010, WE'RE 546 WAS AT THE VERY. CAN I IF YOU CAN GO BACK I'D LIKE TO ASK A QUESTION AS WELL. SECOND, I'M SORRY. THIS ONE HERE. RIGHT THERE. JUST FOR CLARIFICATION, BECAUSE I KNOW YOU'RE ABOUT TO TALK ABOUT THIS WHOLE PROJECT, BUT WE'RE WE'RE TALKING ABOUT FOR TODAY AND TOURS. ALL OF THESE ITEMS, IF WE'RE TO CONTINUE TO DEVELOP GENERAL AVIATION, ALL OF THESE ITEMS WOULD BE REQUIRED. IS THAT CORRECT? THAT IS CORRECT. WHEN I TALK ABOUT ENABLING INFRASTRUCTURE FOR THE EAST SIDE OF THE RUNWAY, THE WATER LINE, THE SEWER LINE, THE FIBER ARE ALL NECESSARY INFRASTRUCTURE FOR US TO MAKE THAT JUMP TO THE EAST SIDE. SO WHETHER OR NOT WE'RE DOING THE COMMERCIAL TERMINAL LATER TONIGHT, THESE ARE INFRASTRUCTURE PROJECTS THAT ARE NECESSARY FOR THAT DEVELOPMENT. I JUST THINK SOME PEOPLE MAY BE CONFUSED BECAUSE YOU'RE ABOUT TO END PART OF THE PRESENTATION THAT TALKS ABOUT THIS WHOLE PROJECT AND FUNDING SOURCES, ON AND ON. ACTUALLY, LIKE THE PRESENTATION THAT ON TOURS, THE TOURS DOLLARS WE'RE TALKING ABOUT ARE NEEDED TO FOR GENERAL AVIATION FOR JUST DEVELOPMENT PERIOD OF THE AIRPORT. AND IF PASSENGER SERVICE WAS NEVER EVEN MENTIONED, WE WOULD STILL BE HERE TONIGHT BECAUSE WE ARE BUILT OUT ON THE EAST SIDE OF THE AIRPORT. AND IF WE ARE TO CONTINUE TO INVEST IN THE AIRPORT AND FOR AS A GENERAL AVIATION AIRPORT, WE WOULD BE LOOKING AT THESE ITEMS BECAUSE WE COULD NOT DO THAT WITHOUT THESE ITEMS. THAT IS CORRECT. SO PREVIOUS PRESENTATIONS TO THE CITY COUNCIL, WE'VE TALKED ABOUT HOW WE'RE RUNNING OUT OF CITY OR AIRPORT LAND ON THE WEST SIDE OF THE AIRPORT. SO WE HAVE PROJECTS IN THE WORKS, PROJECTS THAT ARE SPOKEN FOR AND PROJECTS THAT ARE COMPLETING HERE NEAR IN THE NEAR TERM, SUCH AS THE CIRRUS FACILITY MRO FACILITY, THE ENCORE WIRE, SOME OTHER EDUCATIONAL FACILITIES THAT HAVEN'T BEEN ANNOUNCED YET ARE TAKING UP A LOT OF THE LAND, AND WE'RE RUNNING OUT OF PROPERTY ON THE WEST SIDE. SO THE STRATEGIC PLAN HAS ALWAYS BEEN TO MOVE TO THE EAST SIDE. THE PROBLEM HAS BEEN THE LACK OF INFRASTRUCTURE, BOTH AERONAUTICAL INFRASTRUCTURE, TAXIWAYS AND WHATNOT, RAMP SPACE, BUT ALSO PRIMARILY AS WE'RE TALKING TONIGHT, WE'RE LOOKING AT THAT UNDERGROUND UTILITY INFRASTRUCTURE THAT'S NECESSARY FOR THAT DEVELOPMENT TO OCCUR. THERE WE GO. SO JUST LOOKING AT THE PRICING CRITICAL ITEMS FOR THE PRICING THAT YOU'LL SEE TONIGHT, THIS IS NOT DIRECTLY[00:10:03]
RELATED TO THE ASK, BUT I WANTED TO KIND OF STEP THE BOARD THROUGH THE COSTS ASSOCIATED WITH THIS. SO YOU UNDERSTAND WHERE THE ASK COMES FROM. CRITICAL ITEMS ENABLING EASTSIDE INFRASTRUCTURE, WHICH WE'VE ALREADY TALKED ABOUT. THERE IS SOME COST INFLATION DUE TO TARIFFS AND UNKNOWNS REALLY MORE THAN ANYTHING RIGHT NOW IN THE MARKETPLACE. AND YOU CAN SEE WITH THE CONTINGENCIES THAT ARE INCLUDED AT THE BOTTOM OF THE PAGE THERE, THAT'S PRIMARILY TO HANDLE ANY UNFORESEEN CIRCUMSTANCES COMING FORWARD. WORKING WITH TSA ON THE TERMINAL PROJECT, IT DID EXPAND THAT BUILDING SLIGHTLY TO ACCOMMODATE THEIR SECURITY. AND THEN WE DID MODIFY THE SITE PLAN TO COME UP WITH A REVISED PRICING. SO LOOKING AT THE OVERALL PRICE, THE REQUEST FROM THE BOARD TONIGHT IS FOR $8 MILLION. THAT WOULD COME FROM THE FUND BALANCE AT THE END OF THIS FISCAL YEAR. TOURS NUMBER TWO IS ANTICIPATED TO HAVE A $12 MILLION FUND BALANCE CURRENTLY ACCRUING OVER $3 MILLION ANNUALLY. AND ONCE AGAIN, I LISTED THE PROJECT PLAN PURPOSES OF THE FUND. SO THIS FITS VERY NEATLY INTO THOSE PURPOSES. AND WITH THAT, I WOULD FINISH MY PRESENTATION AND BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE. I DO HAVE HERE TO ASSIST ME. I HAVE MITCHELL MCANALLY ON THE PROJECT SIDE. I HAVE KEN CALI, OUR AIRPORT DIRECTOR, AND MARK HOLLOWAY, OUR CFO FOR THE CITY, IF THERE ARE ANY QUESTIONS. SO WITH THAT, I'LL STAND FOR QUESTIONS. YEAH, I JUST I GUESS ONE MORE. AND I DON'T MEAN TO BEAT A DEAD HORSE, BUT I JUST WANT TO MAKE IT CRYSTAL CLEAR. IF YOU COULD GO BACK TO THE VERY FIRST OR ONE OF THE FIRST SLIDES WHERE IT SHOWED THE PURPOSE OF THE TOURS, WHY IT WAS FORMED RIGHT THERE, EVEN IF YOU REMOVE NUMBER THREE OF CONSIDERATION, THE ASK TODAY STILL FITS WITHIN THE OTHER TWO, YOU COULD LOSE. NUMBER THREE. CONTINUE TO PREPARE FOR COMMERCIAL PASSENGER PASSENGER SERVICE. AND THIS INFRASTRUCTURE AND THIS USE OF THE TOURS IS SPECIFICALLY WHAT TOURS WAS CREATED FOR EVEN ABSENT BULLET POINT NUMBER THREE. THAT IS CORRECT. YES. ANY OTHER QUESTIONS? NO MORE QUESTIONS. DO I HAVE A MOTION? PUBLIC HEARING FIRST. OH. PUBLIC HEARING. THIS IS A PUBLIC HEARING. IF THERE'S ANYBODY HERE THAT WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME FORWARD NOW. HAVING NONE, DO I HAVE A MOTION? I MAKE A MOTION. I DO HAVE A QUESTION, A COUPLE QUESTIONS, OKAY. SO THE I KNOW SOME OF THE PREVIOUS THINGS THAT THAT, YOU KNOW, I VOTED FOR AND APPROVED WERE SOME OF THE, YOU KNOW, HANGAR SPACES AND ADDITIONAL TAXIWAY, YOU KNOW, THINGS THAT WERE RIGHT IN LINE. AND, YOU KNOW, MORE MORE TAX DOLLARS ARE COMING BACK INTO THE TOURS AS A RESULT. WHAT KIND OF TAX DOLLARS DO YOU SEE COMING BACK IN AS A RESULT OF THIS $8 MILLION SPEND? SO WITH THE PROJECT WE CURRENTLY HAVE, AND THIS IS ACTUALLY A VERY INTERESTING SIDE OF THE AIRPORT, AND YOU CAN SEE THE PANHANDLE, AS WE TALKED ABOUT EARLIER, THAT'S OUR PROJECT LOCATION. SO ANYTHING THAT HAPPENS WITHIN THAT DISTRICT OF COURSE WILL FEED THE TOURS WITH ADDITIONAL INCREMENTAL TAX REVENUES. SO AS WE BUILD A LOT OF THESE TERMINAL PROJECTS, INFRASTRUCTURE PARKING LOTS ARE NOT TAXABLE. THEY'RE ON CITY PROPERTY. THEY'RE CITY OWNED. SO THOSE WOULD NOT HELP OR HINDER THE TOURS. ONE THING THAT'S VERY INTERESTING AS I LOOK AT THIS IS A LOT OF THE DEVELOPMENT THAT'S GOING TO OCCUR ON THE EAST SIDE WILL NOT BE IN THE TOURS. AND SO WE WOULD BE PROMOTING GROWTH OF THE AIRPORT THAT WILL LEAD TO FURTHER DEVELOPMENT, BOTH AERONAUTICAL AND NON-AERONAUTICAL, WHERE IT'S ADJACENT TO THE AIRPORT BUT NOT AN AERONAUTICAL USE. THOSE WOULD GO TO THE CITY'S GENERAL FUND.HOWEVER, AS WE GROW THE AIRPORT, WE PROVIDE MORE AMENITIES. WE'RE GOING TO SEE MORE BUSINESS AIRCRAFT. WE'RE GOING TO SEE ADDITIONAL PROPERTIES WITHIN THE TOUR ZONE THAT DEVELOP RELATED USES, WHETHER THEY'RE SUPPLIERS TO THE AIRPORT OR OTHER INDUSTRIAL USERS THAT THAT TEND TO LOCATE THERE. AND SO THE GROWTH OF THE DISTRICT IS WHAT THE TOURS WOULD BENEFIT FROM.
THE INTERESTING PART TO ME IS A LOT OF THE GROWTH ON THAT EAST SIDE IN THE FUTURE WILL BE OUTSIDE OF THE TOURS, UNLESS THERE'S AN AMENDMENT AT SOME POINT, BUT ASSUMING THERE IS NOT TO THE BOUNDARIES THAT THOSE THOSE DOLLARS WOULD GO TO THE GENERAL FUND FOR THE CITY AND ALSO THE GENERAL FUND TO THE COUNTY SCHOOL DISTRICT AND COMMUNITY COLLEGE. SO OF COURSE, AND SO ON. THE PROJECTS HE'S REFERRING TO THAT HE AND I AND OTHERS HAVE VOTED FOR, OF COURSE, WE WOULD NOT HAVE THOSE WOULD NOT HAVE HAD THOSE PROJECTS TO VOTE FOR, HAD WE NOT HAD THE INFRASTRUCTURE THAT ALLOWED THOSE PROJECTS TO BE BUILT. BUT YOU'RE JUST POINTED OUT SOMETHING INTERESTING IN THAT IN ADDITION, ALL OF THOSE PROJECTS, THOSE MONIES STAY WITHIN THE TOURS, WHICH, AGAIN, I'M NOT ONE OF THOSE WHO BELIEVE THAT BECAUSE THEY STAY IN THE
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TOURS, THERE'S NO BENEFIT TO THE COMMUNITY. THERE'S A $330 MILLION ECONOMIC IMPACT ANNUALLY AS THE AIRPORT SITS TODAY, THAT THAT IS WHY WE INVEST IN INFRASTRUCTURE PROJECTS. BUT A LOT OF THIS ACTUALLY IS GOING TO BENEFIT OR GO TO THE GENERAL FUND IN ADDITION TO THE ECONOMIC IMPACT IT INCREASES WITH WITH WHAT WE DEVELOP, THE ESTIMATED ECONOMIC IMPACT BY YEAR THREE OF THIS PROJECT TO BE IN OPERATIONAL IS ANTICIPATED TO BE JUST BELOW $400 MILLION ANNUALLY OF ADDITIONAL ECONOMIC IMPACT TO THE REGION. SO THAT WILL BENEFIT EVERYONE. BUT YOUR QUESTION SPECIFICALLY IS HOW DOES IT BENEFIT THE TOURS? AND THERE WILL BE A BENEFIT TO THE TOURS AS IT WILL GROW. OTHER DEVELOPMENTS WITHIN. WHILE THIS PROJECT IS TAX EXEMPT, THERE WILL BE OTHER ASSOCIATED PROJECTS THAT I SAID FEED THE TOURS BUT GRANT ADDITIONAL INCREMENTAL TAX REVENUES TO THE TOURS. OKAY, THANKS. SO I MAKE A MOTION TO APPROVE THE ITEM. I HAVE A SECOND PUBLIC HEARING AND APPROVE THE ITEM. DO I HAVE A SECOND? SECOND? I HAVE A MOTION MADE BY MAYOR FULLER. OH. CAM, THERE'S A SECOND BY CAM MCCALL. ALL THOSE IN. PLEASE PUT IN YOUR VOTE. OKAY. THAT MOTION PASSES 7 TO 1. THAT IS OUR LAST ITEM ON THE AGENDA. DO I HAVE A MOTION TO ADJOURN? SO MOVED. SECOND MOTION BY GEORGE, BY MAYOR FULLER, SECONDED BY COUNCILWOMAN FELTUS. PLEASE CAST YOUR VOTES* This transcript was compiled from uncorrected Closed Captioning.