PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Approval of a resolution of the City Council of the City of New Braunfels, Texas, approving a recommendation of the New Braunfels Economic Development Corporation for a project expenditure of up to $600,000 to the City of New Braunfels National Airport for a Texas Department of Transportation project match for the reconstruction of the Airport’s north ramp, a project authorized under 505.1561 of the Texas Local Government Code.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: 2
BACKGROUND INFORMATION:
The New Braunfels National Airport has two primary aircraft parking facilities - the apron in front of the existing terminal building and the north side apron. The north side apron is in disrepair and TxDOT Aviation Division has identified its reconstruction as a critical project to undertake to support the airport’s continued growth. The proposed north apron reconstruction project will serve as the New Braunfels National Airport's largest aircraft parking apron with fuel facilities and most of the tenant spaces including multiple aviation-related businesses, critical 24/7 air ambulance facilities, corporate hangars, and T-hangars and shed hangars for smaller aircraft storage. The north apron also serves as the Airport's primary overflow parking apron, as the terminal apron frequently exceeds the space available for terminal operations.
The primary improvement of the proposed project is the removal and replacement of most of the existing north apron pavement. In addition to the proposed apron providing new and expanded services, the design of the apron will improve operational and safety challenges in the existing apron layout. The reconstruction of the north apron pavement will mitigate ongoing safety concerns about foreign object debris (FOD) from deteriorating pavement and provide the apron space and connectivity needed to facilitate important revenue-generating operations that support the growth of the New Braunfels National Airport. The project requires the removal of more than 58,000 square yards of asphalt and concrete, along with 58,000 square yards each of subgrade, base and new pavement.
TxDOT Aviation identified this project in its 5-year capital improvement program and is providing funding for 90% of the project. The local sponsor is responsible for identifying the 10% match, which is estimated at $800,000. The City requested the New Braunfels Economic Development Corporation (NBEDC) provide $600,000 of the amount, with the Airport contributing the remaining $200,000.
The north ramp reconstruction project underwent preliminary engineering during the 2022-2023 and TxDOT is ready to submit the project for funding action by the Texas Transportation Commission but cannot proceed until it receives notice from the airport sponsor (City) that it has identified the 10% match funding.
The Airport is owned by the City of New Braunfels and serves general aviation users from the City, Guadalupe County and surrounding area. Services provided include aircraft parking, hangar leasing, and aircraft maintenance which includes airframe and power plant repair. As of December 2022, the airport featured 133 based fixed-wing single-engine aircraft, 12 based fixed-wing multi-engine aircraft, 13 jets and 2 helicopters. The Airport is a self-sustaining enterprise operation, meaning that the revenue generated by its business activities covers most of its expenses. While there is some ability to contribute to the 10% match, the airport has capital improvement needs that exceed its capacity to finance all of those identified needs. The last time the Airport requested the EDC consider financially supporting a project expenditure was in 2016 for extension of the corporate taxiway. The EDC provided up to $2.4 million to support that project, which was structured as a 50% grant and 50% loan. The loan terms provide a 10-year term and amortization and 3% interest payment, which the Airport has been repaying since 2021. The Airport can provide $200,000 of the required $800,000 match; this leaves $600,000 as the remaining amount.
The NBEDC received an initial presentation on this matter at its August 17, 2023 regular meeting. At its September 20, 2023 special-called meeting, the NBEDC discussed and held a public hearing for this expenditure. Upon closure of the public hearing, the NBEDC unanimously approved the project expenditure.
ISSUE:
The north side aircraft parking area, the north apron, is in disrepair. TxDOT Aviation has identified its reconstruction as a critical project to undertake to support the airport’s continued growth. The NBEDC has approved a project expenditure to help meet TxDOT’s 10% project match requirement and the airport will close the funding gap with internally generated funds.
FISCAL IMPACT:
The City requested the NBEDC support the project expenditure of up to $600,000 to help meet TxDOT’s 10% project match requirement, with the Airport providing $200,000. The NBEDC and Airport Fund have adequate funds in the FY 2024 Budget for their respective matches to fund this project.