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McKinney Airport Expansion Funding Faces Lawsuit and AG Review

A legal challenge questions the city's use of sales tax revenue bonds for airport debt refinancing as commercial flights approach.

Xenia Yoder

July 3, 20262 min read

Airport funding lawsuit - illustration, Jake Team LLC
Airport funding lawsuit - illustration, Jake Team LLC

A lawsuit filed in March by the North Texas Conservation Association has challenged the legality of millions of taxpayer dollars supporting the McKinney airport expansion. The group, composed of local residents and neighbors, argues that the city ignored voter intent by proceeding with the project despite previous ballot rejections.

The filing has drawn scrutiny from the Texas attorney general, who also questioned the city’s funding process.

McKinney is about 11 miles east of Prosper. The legal dispute centers on $30 million in bonds issued last year by the McKinney Community Development Corporation. These bonds, backed by sales tax revenue, were intended to help pay for the airport’s expansion, which includes a commercial passenger terminal.

The attorney general previously approved these bonds. The city is now using a federal program from the U.S. Department of Transportation to refinance this debt. City officials state this move will result in significant savings for taxpayers by lowering interest rates and extending the repayment period.

The North Texas Conservation Association asserts in its lawsuit that the McKinney City Council disregarded the clearly expressed will of voters. In 2023, residents rejected a $200 million property-tax-backed bond for airport improvements. This followed a 2015 vote where voters also rejected a $50 million bond for similar projects.

Some residents and neighbors have expressed concerns about noise, traffic, and growth in the suburban Collin County area. Supporters argue that McKinney can benefit from becoming the region’s third commercial airport.

City officials maintain that previous elections concerned the method of payment rather than the approval of the project itself. After the ballot failures, the city utilized state and city funds, along with sales tax revenue bonds from economic development corporations, to finance the expansion.

Council member Patrick Cloutier noted on social media that the city eagerly voted to refinance the debt when eligible, expecting to save millions.

The city confirms that the money has already been spent on construction. City Manager Paul Grimes stated that the airport is under construction and that the litigation is not expected to stop or slow the expansion. While the suit may affect how some debt is paid off, it is not anticipated to ground Avelo Airlines’ planned commercial flights, which are scheduled to begin this fall.

Source: yahoo.com.

Sources

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

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Xenia Yoder

Xenia Yoder writes about community life, schools, public safety, and local events in Prosper.

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