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Consider a memorandum/resolution approving the Build-To-Suit Lease Agreement with CSI Aviation, Inc.
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DATE: May 6, 2025
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Build-To-Suit Lease Agreement with CSI Aviation, Inc.
BACKGROUND AND FINDINGS:
CSI Aviation, Inc. (CSI) has been a tenant of the Killeen Regional Airport (KRA) since 2018, and currently leases two (2) corporate aircraft hangars at KRA. Over the past three (3) years, CSI has gradually moved various elements of their company from Albuquerque, New Mexico to the Killeen Regional Airport. CSI currently has sixty-four (64) full time employees working on-site at KRA, with several other employees assigned to Killeen but working remotely and/or splitting time between Killeen and their Albuquerque office. During this time, Aviation staff began negotiating with CSI concerning relocating their corporate headquarters from Albuquerque, New Mexico to the City of Killeen, contingent on the construction and availability of adequate office space near Killeen Regional Airport. CSI Aviation anticipates that the relocation will permit the creation of at least thirty-five (35) full-time additional positions with an average salary of $95,000 within two years from occupying the new building. CSI Aviation is a vital asset to the Killeen Regional Airport by providing essential aviation services and a significant amount of revenue through hangar rent and fuel sales. Additionally, the City of Killeen would benefit from the creation of over thirty-five (35) high to medium salary jobs.
Based on these discussions with CSI, the Aviation Department developed an RFQ for Design and Construction Services for a Design/Build Project at the Killeen Regional Airport. The RFQ first advertised on October 13, 2024, and closed on November 7, 2024. Synergy Commercial Construction was selected to begin the discussions for a design/build project for an Office Building for the K...
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