San Marcos Buys 200 Acres to Extend Runway, Eyes Aerospace Future

San Marcos is investing in a runway extension and a 2,000-acre mega site to attract aerospace and defense companies, leveraging its location between Austin and San Antonio.

DC Metrowire Staff
••Business
San Marcos Buys 200 Acres to Extend Runway, Eyes Aerospace Future

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 signals the city's ambition to become a hub for aerospace, defense, and advanced manufacturing. The acquisition, discussed by economic development director Helen Ramirez on a recent episode of The Building Texas Show, is part of a broader strategy to capitalize on the region's growing innovation corridor.

The runway extension, funded by FAA and Texas Aviation grants, will enhance the airport's capacity to serve larger aircraft and attract new tenants. 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 accommodating the needs of aerospace and defense companies that require robust airfield facilities.

Adjacent to the airport lies TriTexas, a 2,000-acre, rail-served mega site that is already equipped with regional detention and utilities, even before a single tenant has signed on. This readiness gives San Marcos a competitive edge in attracting large-scale manufacturing and distribution operations. The site's proximity to the airport creates a seamless integration of air and rail logistics, a key consideration for aerospace and defense firms.

Ramirez emphasizes that San Marcos is not pursuing a spaceport with rocket launches, but rather the intellectual ecosystem that supports space exploration. "We are looking at that future of space. It is not necessarily launching rockets," she says. "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." She points to Hawthorne, California—home to Raytheon, Boeing, and Northrop Grumman—as a model for the type of aerospace innovation Central Texas can foster.

The city's efforts are backed by data. A survey conducted by Ramirez's office of 98 companies found that over 90% reported stable or growing operations, with about 40% 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 graduate students. US Aviation trains active-duty Air Force cadets at the airport, further cementing the region's defense ties.

Texas State University is also playing a role, with its Star Park incubator hosting the Innovation Corridor Defense Accelerator, run in partnership with Starburst Aerospace and the Hays Caldwell Economic Development Partnership. Additionally, a 130-key boutique hotel is coming downtown on land donated by Texas State, with a minimum-wage requirement tied to inflation written into the incentive deal. The university is adding a hospitality program tied to the hotel project, ensuring a skilled workforce for the growing hospitality sector.

The city's pro-business approach is exemplified by its permitting process. Ramirez's staff has direct access to the city's permitting software, allowing them to answer permit questions in real time. Texas Building Supply, on track for roughly $40 million a year in sales tax once fully ramped, benefits from this efficiency without any incentive package. This streamlined approach is a significant draw for companies looking to expand quickly.

For more information, watch the full episode with Helen Ramirez on YouTube: youtube.com/@thebuildingtexasshow.

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