The City of San Marcos has purchased nearly 200 acres from the U.S. Department of Labor to extend the runway at San Marcos Regional Airport, a move that could significantly boost the region's aerospace and defense industries. Helen Ramirez, economic development director for the city, detailed the project on a recent episode of The Building Texas Show, explaining that the acquisition is part of a broader strategy to attract aerospace, defense, and manufacturing companies to the area between Austin and San Antonio.
The runway extension is being funded by FAA and Texas Aviation grants, and the airport already hosts more than 18 tenants, including Berry Aviation, now owned by publicly traded Bristow Group (NYSE: VTOL). The expansion is expected to accommodate larger aircraft and increase capacity for existing and future tenants.
Adjacent to the airport, a 2,000-acre rail-served mega site called TriTexas is ready for development, with regional detention and utilities already in place before any tenant has signed on. This infrastructure investment positions the site as a prime location for large-scale manufacturing and distribution operations.
Ramirez emphasized that San Marcos is not pursuing a spaceport with rocket launches, but rather aims to be part of the intelligence and ecosystem supporting the space industry. She cited Hawthorne, California—home to Raytheon, Boeing, and Northrop Grumman—as a model for the type of aerospace and defense companies Central Texas can attract. "We are looking at that future of space. It is not necessarily launching rockets," she said. "But we can be part of the intelligence of creating that ecosystem."
The city's efforts are already yielding results. A survey conducted by Ramirez's office of 98 companies found that more than 90% reported stable or growing operations, and about 40% are actively expanding. Epic Piping is adding 100 employees, Amazon continues to grow its footprint, and Collins Aerospace, which also operates in California, told Ramirez that business is better in San Marcos. Nabaco, a Texas State University spinout that went through a Rice University accelerator, now operates in Spain and still hires Texas State grad students. US Aviation trains active-duty Air Force cadets at the airport, and Texas State is adding a hospitality program tied to a new downtown boutique hotel.
The 130-key Midway Hotel is being developed on land donated by Texas State University, with a minimum-wage requirement tied to inflation written into the incentive deal. This project reflects the city's commitment to ensuring economic development benefits the community.
Ramirez also highlighted the efficiency of the city's permitting process. Her staff has direct access to the city's permitting software, allowing them to answer questions in real time. Texas Building Supply, on track for roughly $40 million a year in sales tax once fully ramped, with no incentive package attached, benefits from this streamlined approach.
The implications of these developments are substantial. San Marcos is positioning itself as a key player in the aerospace and defense supply chain, leveraging its location, infrastructure, and university partnerships to attract high-tech companies. The runway extension and TriTexas mega site could catalyze job growth and economic diversification, while the focus on space intelligence rather than launch facilities differentiates the city from other spaceports. As the region continues to grow, San Marcos's proactive approach to economic development may serve as a model for other communities seeking to capitalize on the burgeoning space economy.
