HomeMy WebLinkAbout033711 RES - 07/29/2025Resolution authorizing an Air Service Minimum Revenue Guarantee
Agreement with Visit Corpus Christi (VCC) for funds promoting
additional tourists to CCIA, in an amount totaling $100,000, with FY
2026 funding of $100,000 from VCC.
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 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; and
WHEREAS, this Minimum Revenue Guarantee Agreement with VCC and City
will total $100,000, and the agreement term will be from October 9, 2025, to August
16, 2026, funding the business expansion of CCIA with the new transportation system
HUB, Frontier Airlines, to bring additional tourists to Corpus Christi pursuant to Texas Tax
Code Section 351.101.
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
air service agreement with Visit Corpus Christi, totaling $100,000, for a term from October
9, 2025 to August 16, 2026, and subject to appropriation of funds.
Section 2. The City Manager, or designee, is authorized to execute all documents
necessary for an Air Service Minimum Revenue Guarantee Agreement with Visit Corpus
Christi totaling $100,000.
03a7,a SCANNED
PASSED AND APPROVED on the 99I\1day of 2025.
ATTEST:
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Reb cca Huerta, City Secretary
Paulette Guajardo, M
Resolution #25-1180 Page 2 of 2
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