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 reshape the region's economic future. Helen Ramirez, the city's economic development director, 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 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). This infrastructure upgrade is critical for landing larger aircraft and supporting the operations of aerospace companies that might consider relocating to the region. Next to the airport, a 2,000-acre rail-served mega site called TriTexas is being developed. Regional detention and utilities are already in place, making it one of the few shovel-ready sites of its scale in Central Texas. The combination of the expanded airport and the mega site positions San Marcos as a serious contender for major aerospace investments.
Ramirez is clear that San Marcos is not pursuing a spaceport with rocket launches. Instead, she envisions the city as a hub for the intelligence and manufacturing side of the space industry. “We are looking at that future of space. It is not necessarily launching rockets,” she said. “You can have it in Starbase, SpaceX, but that's not what we're looking for. But we can be part of the intelligence of creating that ecosystem.” Her reference point is Hawthorne, California, home to Raytheon, Boeing, and Northrop Grumman—companies that represent the kind of aerospace ecosystem she believes Central Texas can build.
The numbers support the pitch. A survey conducted by Ramirez's office of 98 companies found that over 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 company that emerged from Texas State University and went through a Rice University accelerator, now operates in Spain and still hires Texas State graduate 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 hotel project.
The 130-key boutique Midway Hotel is coming to downtown on land donated by Texas State, with a minimum-wage requirement tied to inflation written into the incentive deal. This project not only addresses the need for lodging but also ensures that the economic benefits are shared with the community. The city's approach to economic development is hands-on: Ramirez's staff has direct access to the city's permitting software, allowing them to answer permit questions in real time. Texas Building Supply, which is on track for roughly $40 million a year in sales tax once fully ramped, with no incentive package attached, benefits from this streamlined process.
These developments signal a significant shift for San Marcos. By leveraging its airport, land assets, and university partnerships, the city is positioning itself as a key player in the aerospace and defense supply chain. The purchase of the 200 acres is not just about extending a runway; it is about laying the groundwork for an ecosystem that could bring high-paying jobs and long-term economic resilience to the region. As aerospace and defense companies look for alternatives to traditional hubs, San Marcos is making a compelling case that it has the infrastructure, workforce, and business-friendly environment to support their growth.
