The McKinney City Council is set to vote on the city’s multi-million dollar purchase of assets at Collin County Regional Airport. During Tuesday evening’s council meeting, the council members will vote to grant City Manager Jason Gray the authority to execute a purchase agreement with McKinney Airport Properties Inc., McKinney Aviation I Ltd., Tres Airport Partners, LP, and Collin County Regional Investments, LP.
According to the city council meeting packet, available through the city’s website, the purchase price will be at least $17.5 million.
The council recently gave Gray the authority to negotiate for the purchase of privately held assets at the airport as part of the city’s push to control all of the operations at CCRA.
According to the proposed resolution and agenda item, Gray has successfully negotiated a purchase price with the selling entities “and the seller has indicated a willingness to accept the offer.” If the council approves the resolution during Tuesday’s meeting, Gray will execute the purchase agreement. The council will approve the closing of the purchase during a subsequent meeting.
The agenda item also states that the purchase of the airport assets will be funded through a combination of debt issuance and cash and that the city will target a closing date of Nov. 1.
As a companion item to the purchase agreement resolution, the council will also vote on the issuance of debt in the amount of $18 million to fund the purchase of the airport assets. The debt issuance resolution states that the city will use the debt for the purpose of “acquiring, constructing, improving, extending, and equipping municipal airport facilities and professional services.”
The resolution also states that the repayment of the debt will be made from ad valorem taxes and a limited pledge of the net revenues from the city’s airport operation.
The resolution states that $17.5 million of the requested debt will be used “directly for the acquisition of the facility.”
Check back with TSB for coverage of Tuesday’s council meeting and a recap of the council’s discussion of the airport purchase agreement.