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 underscores the city's ambition to become a significant player in aerospace, defense, and advanced manufacturing. The land acquisition, discussed by Helen Ramirez, the city's economic development director, on a recent episode of The Building Texas Show, is part of a broader strategy to leverage the region's existing assets and position San Marcos as a hub for the intelligence and ecosystem side of the space industry, rather than rocket launches.
Ramirez explained that 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 attract more aerospace and defense companies, similar to the cluster in Hawthorne, California, home to Raytheon, Boeing, and Northrop Grumman. "We are looking at that future of space. It is not necessarily launching rockets," Ramirez 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."
Adjacent to the airport, the 2,000-acre TriTexas mega site is already equipped with regional detention and utilities, even before a single tenant has signed. This rail-served site is primed for large-scale manufacturing and logistics operations. Meanwhile, Texas State University's Star Park incubator houses the Innovation Corridor Defense Accelerator, run in partnership with Starburst Aerospace and the Hays Caldwell Economic Development Partnership, further cementing the area's focus on defense and aerospace innovation.
The city's efforts are already yielding results. A survey conducted by Ramirez's office of 98 companies found that over 90% reported stable or growing business, 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 spin-off 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, and Texas State is adding a hospitality program tied to a new 130-key boutique hotel downtown, on land donated by the university, with a minimum-wage requirement tied to inflation written into the incentive deal.
The implications of these developments are significant. San Marcos is not just extending a runway; it is building an ecosystem that could diversify the regional economy, create high-skilled jobs, and attract national defense and aerospace contractors. The city's pro-business approach is exemplified by its permitting efficiency: Ramirez's staff has direct access to the city's permitting software, allowing real-time responses to companies like Texas Building Supply, which is on track for roughly $40 million a year in sales tax once fully ramped, with no incentive package attached. This streamlined process could serve as a model for other cities seeking to attract advanced industries.
As Central Texas continues to grow, San Marcos's strategic investments in infrastructure and education partnerships position it to capture a share of the expanding aerospace and defense market. The city's focus on the intelligence and support side of space—rather than launch operations—sets it apart and aligns with its existing strengths in manufacturing and higher education. With the runway extension and the TriTexas site ready for development, San Marcos is signaling that it is open for business to the aerospace and defense sectors.
