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

San Marcos is making bold moves to cement its place in Texas' aerospace and defense economy, according to Helen Ramirez, economic development director for the City of San Marcos. In a recent episode of The Building Texas Show with host Justin McKenzie, Ramirez detailed the city's purchase of nearly 200 acres from the U.S. Department of Labor to extend the San Marcos Regional Airport runway, alongside the 2,000-acre TriTexas mega site and a growing cluster of aerospace, defense, and manufacturing companies.

The runway expansion, funded by FAA and Texas Aviation grants, is a critical step in attracting larger aerospace operations. The airport already hosts more than 18 tenants, including Berry Aviation, now owned by publicly traded Bristow Group (NYSE: VTOL). But Ramirez is clear that San Marcos isn't chasing a spaceport. "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—the aerospace intelligence and manufacturing side that Central Texas can realistically build.

The 2,000-acre TriTexas site, rail-served and located next to the airport, already has regional detention and utilities in place before a single tenant has signed. That infrastructure readiness is a powerful draw for companies looking to move quickly. Meanwhile, Star Park, Texas State University's incubator, houses the Innovation Corridor Defense Accelerator, run with Starburst Aerospace and the Hays Caldwell Economic Development Partnership.

Data from a survey conducted by Ramirez's office of 98 companies shows more than 90% are stable or growing, and about 40% are actively expanding. Epic Piping is adding 100 employees. Amazon continues to grow its footprint. Collins Aerospace, which also operates in California, told Ramirez that business is better in San Marcos. Nabaco, a Texas State spinoff that went through a Rice University accelerator, now operates in Spain but still hires Texas State graduate students. US Aviation trains active-duty Air Force cadets at the airport. Texas State is adding a hospitality program tied to a new 130-key boutique hotel downtown, on land the university donated, with a minimum-wage requirement tied to inflation written into the incentive deal.

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 real-time answers for 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. That level of responsiveness is a model for other Texas cities looking to attract and retain high-impact businesses.

For readers, this news matters because it signals a shift in Texas' economic geography. San Marcos, already positioned between Austin and San Antonio, is becoming a hub for aerospace intelligence, defense contracting, and advanced manufacturing. The runway expansion and TriTexas site could attract billions in investment and thousands of jobs, strengthening the state's role in national security and space innovation. As Ramirez puts it, the goal is not to launch rockets but to build the ecosystem that supports them—a strategy that could reshape the I-35 corridor for decades.