PRESENTER: Presenter
Jeff Jewell, Director of Economic & Community Development
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SUBJECT: Title
Public hearing, discussion, and possible action to forgive the New Braunfels National Airport loan remaining balance of $644,770, pursuant to 501.103 of the Texas Local Government Code.
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DEPARTMENT: Economic & Community Development
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COUNCIL DISTRICTS IMPACTED: 2
BACKGROUND INFORMATION:
All airports play a variety of different functional roles and contribute at varying levels to meet the transportation and economic needs on a national, state and local level. New Braunfels National Airport, designated a national airport in 2021, has long been identified as an asset for the city. In addition to serving the need to connect New Braunfels to the rest of the country through the airspace system, the airport has become an integral part of the local community and economy.
In late 2015, the New Braunfels Economic Development Corporation (NBEDC) approved an expenditure of $2.4M to help support the taxiway extension project - to allow for additional hangar construction and increased based aircraft space. Of the initial funds, $1.2M was provided as a grant for the project and the remaining $1.2M was issued as a 10-year amortizing loan at 3%. The taxiway construction was completed in late 2019. In FY21-22, the airport started making a $129,000 annual payment which has occurred for four additional years. Since completion of the taxiway extension, private capital has delivered three new hangars with at least two additional in predevelopment. These three new hangars represent more than 34,000 ft2 of new hangar space with additional based aircraft that are partially responsible for driving the airport’s fuel sales from 447,000 gallons in 2020 to more than 900,000 gallons expected by the end of FY2026.
The New Braunfels National Airport is an enterprise fund, meaning that it does not receive general property or sales tax revenue support. Instead, it relies on revenues generated at the airport through the leasing of land, publicly owned hangars, and the provision of goods and services. However, the scale of ongoing capital infrastructure and facility needs- required to meet growing demand and maintain existing assets- continues to outpace available funding. Forgiveness of the remaining loan would free up approximately $129,000 in airport revenues, allowing those funds to be reinvested into operations and priority infrastructure projects that support airport’s continued growth and economic impact.
The City is completing a terminal feasibility study that has recommended a new terminal building to accommodate the airport’s growth since 2003 when the original, 4,000 ft2 terminal building was constructed. Capital Improvement Planning with the state of Texas and the city has identified more than $30M in capital improvement needs over the near to medium term. Some of these improvements may be eligible for grants from the federal and state governments, but many of those improvements will likely need to be financed through future airport revenues. The composition of the capital needed to complete those improvements is an ongoing area of study, but the additional $129,000 in additional cash flow further strengthens the airport’s finances.
Since 2018 the airport has seen the following business investments and assets constructed:
- six new hangars with an approximate combined value of $11-12M
- five repair centers have opened
- four flight schools are now operating on the airfield
- approximately $18M in site improvements from a combination of TxDOT, FAA, local and NBEDC investments
- 180+ based aircraft driving more than 900,000 gallons in projected fuel sales in 2026
According to a 2018 Economic Impact Study, a total of 240 jobs with a combined payroll of $7.7M were attributed to the New Braunfels National Airport. A 2026 study is underway. Since 2020, the airport has reported an 83% revenue growth and in February 2026, the airport was reported as the 4th busiest general aviation airport in the state.
The NBEDC received a presentation on this project at its April 16, 2026 meeting. This project idea was also identified in the recently approved NBEDC Strategic Plan in Priority Four: Business Recruitment and Retention.
ISSUE:
The NBEDC Strategic Plan identifies Business Recruitment and Retention as one of its four priorities. Continued airport maintenance and expansion to meet projected growth demands from general and corporate aviation will enhance New Braunfels’ position and competitiveness to attract and retain high quality companies. This proposed project would reduce annual airport expenses by $129,000, allowing the airport to reinvest those proceeds into new projects and capacity expansion that can meet the future demand for services by the general and business aviation community.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☒Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
The initial $2.4M for the taxiway extension project was previously approved and expensed. Approval of this item would reduce NBEDC revenue of $129,000 each year for the five remaining years of the loan payments.
Recommendation
RECOMMENDATION:
Staff recommends approval of the New Braunfels National Airport loan forgiveness.