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McKinney Airport Expansion Funding Faces Lawsuit and AG Review

A legal challenge questions the city's use of sales tax bonds for airport expansion, even as commercial flights approach.

Demarcus Ferris

July 3, 20262 min read

Airport Funding Lawsuit - illustration, Jake Team LLC
Airport Funding Lawsuit - illustration, Jake Team LLC

McKinney is about 13 miles north of Plano. A lawsuit filed in March by the North Texas Conservation Association has challenged the legality of millions of taxpayer dollars supporting the expansion of the McKinney airport. The group, composed of local residents and neighbors, argues that the city ignored voter intent by proceeding with the project despite previous rejections of funding measures. The Texas attorney general also filed a challenge regarding the city’s funding process.

The dispute centers on $30 million in bonds issued last year by the McKinney Community Development Corporation. These bonds, backed by sales tax revenue, were approved by the attorney general to help pay for the airport’s expansion, which includes a commercial passenger terminal. The city is utilizing a federal program from the U.S. Department of Transportation to refinance this debt. City officials state that this refinancing will result in significant savings for taxpayers by lowering the interest rate and extending the repayment period.

McKinney City Council member Patrick Cloutier noted on social media that the council voted to refinance the debt after becoming eligible for the federal program earlier this year, asserting it would save millions for the corporation. The city maintains that the money has already been spent on construction and that the current litigation is not expected to stop or slow the airport’s expansion. City Manager Paul Grimes stated that the airport is under construction and that the legal challenges will not halt the work.

The lawsuit highlights a long-standing disagreement over the airport’s development. In 2015, voters rejected a $50 million bond for airport improvements. In 2023, residents again rejected a $200 million property-tax-backed bond for similar projects. The North Texas Conservation Association asserts in its filing that the city council ignored the clearly expressed will of the voters. City officials counter that those elections concerned the method of payment rather than the decision to fund the expansion itself.

Supporters of the project argue that McKinney can capitalize on becoming the region’s third commercial airport. Opponents fear the noise, traffic, and growth associated with the facility in the suburban Collin County area. Despite the legal scrutiny, an airline is preparing to begin commercial flights from the airport this fall. The outcome of the lawsuit regarding how the debt is paid off remains to be seen, but the physical expansion is proceeding.

Source: yahoo.com.

Sources

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

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Demarcus Ferris

Demarcus Ferris writes about community life, schools, public safety, and local events in Plano.

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