The McKinney airport expansion is facing a legal challenge regarding its funding structure, drawing scrutiny from the Texas attorney general just as commercial passenger service prepares to begin. The North Texas Conservation Association, a group comprising local residents, filed a lawsuit in March contesting the legality of the debt repayment methods used for the project, which includes a new commercial terminal.
The lawsuit highlights a long-standing divide over the airport's development. In 2015 and again in 2023, McKinney voters rejected bond measures to finance airport improvements, including a $50 million proposal in 2015 and a $200 million property-tax-backed bond in 2023.
Despite these rejections, the city proceeded with expansion using alternative funding sources, including state and city funds, as well as sales tax revenue bonds issued by the McKinney Community Development Corporation and other economic development entities.
Central to the current dispute is $30 million in bonds backed by sales tax revenue, issued last year by the McKinney Community Development Corporation. The attorney general approved these bonds. 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 interest rates and extending the repayment timeline. Council member Patrick Cloutier noted on social media that the council voted to refinance the debt upon becoming eligible, estimating millions in savings for the corporation.
The North Texas Conservation Association argues in its filing that the city council disregarded the expressed will of voters by continuing with expansion plans. City officials counter that previous elections addressed the method of payment rather than the decision to fund the project at all.
