HomeMy WebLinkAbout033702 RES - 07/22/2025Resolution authorizing an Air Service Minimum Revenue Guarantee
Agreement with airline for Corpus Christi International Airport totaling
$787,579.00, as part of the Small Community Air Service Development
(SCASD) program grant from the United States Department of
Transportation (DOT), and authorizing the city manager or designee
to execute all documents necessary for the air service agreement.
WHEREAS, on August 3, 2022, the Corpus Christi International Airport (CCIA)
was awarded a $437,579 federal match air service development grant from the U.S.
Department of Transportation;
WHEREAS, the SCASD grant is a federal matching grant in the amount of
$437,579, plus a match of $350,000, totaling $787,579.
WHEREAS, The SCASD grant aims to ensure a Minimum
Revenue Guarantee to provide financial incentives to airline carriers, conduct studies on
the possibilities of expanded service, and carry out marketing programs to promote
existing local services;
WHEREAS, as part of the SCASD grant program, the City will enter into an Air
Service Agreement totaling $787,579, with Airline for new air service from Corpus Christi
to a Western destination;
WHEREAS, this Air Service Agreement between the City and the Airline outlines
the commitment of $787,579, towards the Minimum Revenue Guarantee for this new air
service to Denver Colorado, and sourced from a $437,579 federal SCASD match grant,
a $350,000 community share contribution contingent from Visit Corpus Christi in the
amount of $100,000 plus contingent from Type B Corporation Funds in the amount of
$250,000;
WHEREAS, there will also be a Minimum Revenue Guarantee secondary funding
contract between Airline and Corpus Christi B Corporation committing $394,747 to the
Minimum Revenue Guarantee should the SCASD grant funds be fully utilized;
WHEREAS, this Minimum Revenue Guarantee secondary layered funding source
from the Type B Corporation in the amount of $394,747 will be committed through a
separate, concurrent agreement, ensuring the full Minimum Revenue Guarantee
commitment is met, totaling $1,182,326; and
WHEREAS, the Air Service Minimum Revenue Guarantee Agreement, which
includes the SCASD grant match, will stimulate economic growth in offering the City of
Corpus Christi a new hub that connects to the Western half of the United States, bringing
more travelers to Corpus Christi to use CCIA.
Be it resolved by the City Council of the City of Corpus Christi, Texas:
Section 1. The City Council specifically finds that the foregoing statements
included in the preamble of this resolution are true and correct and adopts such findings
for all intents and purposes related to the authorization of this minimum revenue guarantee
03370
SCANNED
air service agreement.
Section 2. The City Manager, or designee, is authorized to execute all documents
necessary for an Air Service Minimum Revenue Guarantee Agreement for the CCIA not
to exceed $787,579.00, subject to appropriation of funds.
fA
PASSED AND APPROVED on the T day of 714\1/4-/ , 2025.
ATTEST:
1
Paulette Guajardo, Ma •r Rebecca Huerta, City Secretary
Air Service Minimum Revenue Guarantee Resolution Page 2 of 2
033702