AGENDA CAPTION:
Title
Consider approval of Resolution 2025-143R, approving a contract with the U.S. Department of Labor for the purchase of approximately 169.85 acres of land located at 2800 Airport Highway 21 and 1285 William Pettus Road next to the San Marcos Regional Airport for a price of $1,683,000.00, plus associated closing costs; authorizing the City Manager, or her designee, to execute said contract and associated closing documents on behalf of the city; and declaring an effective date.
Body
Meeting date: August 5, 2025
Department: Engineering and Capital Improvements
Amount & Source of Funding
Funds Required: $1,683,000
Account Number: C795
Funds Available: Yes
Account Name: Airport - DOL Land Acquisition
Fiscal Note:
Prior Council Action: Click or tap here to enter text.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Public Safety, Core Services & Fiscal Excellence
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☒ Economic Development - Promote & Support Potential of San Marcos Regional Airport
☐ Environment & Resource Protection - Choose an item.
☒ Land Use - Set appropriate density & impervious cover limitations in environmentally sensitive areas to avoid adverse impacts on water supply
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☒ Core Services
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Airport Master Plan
Background Information:
The attached agreement is for the land acquisition of approximately 169.85 acres of land along William Pettus Road next to the San Marcos Regional Airport, for a price of $1,683,000 from the Department of Labor (DOL). Authorization in the amount of $1,683,000 includes additional funds for closing costs.
The San Marcos Regional Airport Master Plan, finalized in 2020 and currently undergoing a minor update, identifies this area as a future site for Non-Aeronautical and Cargo Development. The long-term goal is to support the operation of larger aircraft, which would, in turn, stimulate development along these tracts.
With residential and commercial development rapidly increasing in the region, this acquisition is critical to protecting the long-term viability of the airport. It would preserve the integrity of the Airport Buffer Zone-established in the Airport Zoning Ordinance approved by Council on October 17, 2023-by preventing future incompatible land uses that could restrict airport operations or pose safety and noise concerns. It would also increase the airport’s capacity for development, generating additional revenue for the City through property taxes, lease income, and fuel sales. This growth would support broader economic development efforts by attracting new businesses and creating local job opportunities.
The land is owned by the DOL, but the Federal Government uses the department of the General Services Administration (GSA) to dispose of the land. The City was contacted in March, 2023 and July 2024 asking if we are interested in this land. In both cases, staff responded that we are interested. The City received a letter on June 20, 2025 from the GSA indicating that the City can purchase this land without competition.
The price is well below market value and the funding has been identified in the 10-year Capital Improvements Plan since 2023 in anticipation of this offer.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommend approval of this agreement