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AIR SERVICES AND REVENUE GUARANTEE AGREEMENT
Between the City of Corpus Christi and the Corpus Christi B Corporation
This Agreement is made and entered into this 29th day of July, 2025, by and between the
City of Corpus Christi, Texas ("City"), owner and operator of the Corpus Christi International
Airport (hereinafter "City/CCIA"), and the Corpus Christi B Corporation ("B Corporation").
WITNESSETH:
WHEREAS, the Texas Legislature in Section 501 of the Local Government Code
(Development Corporation Act of 1979) empowered local communities with the ability to adopt
an optional local sales and use tax as a means of improving the economic health and prosperity of
their citizens;
WHEREAS, on November 8, 2016, residents of the City passed Proposition 2, Adopting
Type B Sales Tax to Replace Expiring Portion of Type A Sales Tax, which authorized the adoption
of a sales and use tax to be administered by a Type B Corporation at the rate of one -eighth of one
percent to be imposed for 20 years with use of the proceeds for (1) 50% to the promotion and
development of new and expanded enterprises to the full extent allowed by Texas law, (2)
$500,000 annually for affordable housing, and (3) the balance of the proceeds for the construction,
maintenance and repair of arterial and collector streets and roads;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City's City Council ("City Council") and filed with the State
Comptroller of Texas, effective April 1, 2018, to be administered by the Corporation's Board of
Directors ("Board"), and allowing for economic development projects that expand business
enterprises and create primary jobs;
WHEREAS, on August 3, 2022, the Corpus Christi International Airport (CCIA) was
awarded a $437,579 Small Community Air Service Development (SCASD) federal grant match
from the U.S. Department of Transportation, for the use of a Minimum Revenue Guarantee
(MRG), in the amount of $750,000, of which $437,579 will be used for the MRG match grant
while the remainder funds are used for marketing and other air service development efforts. The
matching SCASD grant of $437,579 requires a local 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 Frontier Airline for new air service from Corpus Christi to
Denver, Colorado, 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 Type B Corporation
Funds in the amount of $250,000 under the B Corporation's Air Service Minimum Revenue
SCANNED
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Guarantee Project approved at public hearing by the Corpus Christi B Corporation on July
21, 2025;
WHEREAS, City/CCIA and Frontier Airlines have agreed to provide nonstop jet service
between Corpus Christi International Airport (CCIA) and Denver International Airport (DEN) as
part of the SCASD grant initiative with City, and City/CCIA enter into this agreement with Corpus
Christi B Corporation to meet the air service minimum revenue guarantee funding of $250,000;
and
WHEREAS, as part of the Air Service Minimum Revenue Guarantee project, the Corpus
Christi B Corporation will contribute funds in the form of a $250,000 revenue guarantee
("Funds") to City/CCIA, and City/CCIA will create at two (2) new part-time contractor jobs in the
City of Corpus Christi and maintain all such jobs for the full term of the Agreement, for creation
and retention of jobs pursuant to Texas Local Government Code Section 505.155.
NOW, THEREFORE, in consideration of the covenants, promises, and conditions stated in
this Agreement, B Corporation and City/CCIA agree as follows:
1. City/CCIA agree that Frontier Airlines will establish airline HUB facilities within the
City of Corpus Christi, Texas (the "Facilities"). In accordance with Section 501.002(4)
of the Texas Local Government Code, and Frontier Airlines shall occupy such Facilities
as the principal office for Frontier Airlines' administrative and management services
within the CCIA.
2. City/CCIA agree Frontier Airlines will operate twice weekly (Thursdays and Sundays),
scheduled DEN -CRP -DEN (Denver, Colorado — Corpus Christi, TX - Denver, Colorado)
air service utilizing Airbus A320 configured for 180-86 passengers in single -class seating.
The departure and arrival times will be scheduled to maximize revenue generation and may
be modified periodically by Frontier in accordance with its customary scheduling
procedures and operational requirements.
3. Effective Date. The effective date of this Agreement ("Effective Date") is the 29th day of
July, 2025.
4. Term. The term of this Agreement shall be from October 9, 2025 to August 16, 2026.
5. Performance Requirements. During the term of this Agreement, City/CCIA will create at
least two (2) new part-time contractor jobs at CCIA with an average salary of $20,000.
The two new part-time jobs will be created during the term of this Agreement. (A "job" is
defined as a full-time employee, contractor, consultant, or leased employee who has a home
address in the Corpus Christi area.)
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6. Grant Award.
a. The B Corporation will grant CITY the amount not to exceed of $250,000, subject to
appropriations as described in paragraph 17 below.
b. The grant will be paid to the CITY as follows:
i. The payment of $250,000 will be made within 30 days following receipt of a
request for funding from the CITY that includes documentation confirming the
acceptance of this agreement signed by all parties.
7. Warranties. City/CCIA warrant and represent to B Corporation the following:
a. City is a municipal organization operating under the laws of the State of Texas, has all
municipal power and authority to carry on its business as presently conducted in Corpus
Christi, Texas.
b. City has the authority to enter into and perform, and will perform, the terms of this
Agreement to the best of its ability.
c. City has received a copy of the Act and acknowledges that the funds granted in this
Agreement must be utilized solely for purposes authorized under State law and by the terms
of this Agreement.
e. The person executing this Agreement on behalf of City is duly authorized to execute this
Agreement on behalf of City.
8. Compliance with Laws. During the Term of this Agreement, City/CCIA shall observe and
obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county,
and city governments.
9. Non -Discrimination. City/CCIA covenants and agrees that City/CCIA will not
discriminate nor permit discrimination against any person or group of persons, with regard
to employment and the provision of services at, on, or in the Project, on the grounds of
race, religion, national origin, marital status, sex, age, disability, or in any manner
prohibited by the laws of the United States or the State of Texas.
10. Force Majeure. If the B Corporation or City/CCIA are prevented, wholly or in part, from
fulfilling their obligations under this Agreement by reason of any act of God, unavoidable
accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes
of force majeure, or by reason of circumstances beyond its control, then the obligations of
the B Corporation or City/CCIA are temporarily suspended during continuation of the force
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majeure. If either party's obligation is affected by any of the causes of force majeure, the
party affected shall promptly notify the other party in writing, giving full particulars of the
force majeure as soon as possible after the occurrence of the cause or causes relied upon.
11. Assignment. City/CCIA may not assign all or any part of its rights, privileges, or duties
under this Agreement without the prior written approval of the B Corporation. Any
attempted assignment without approval is void, and constitutes a breach of this Agreement.
12. Events ofDefault by Company. The following events constitute a default of this Agreement
by City/CCIA:
a. The B Corporation determines that any representation or warranty on behalf of City
contained in this Agreement or in any financial statement, certificate, report, or opinion
submitted to the B Corporation in connection with this Agreement was incorrect or
misleading in any material respect when made.
b. Any judgment is assessed against City or any attachment or other levy against the
property of City with respect to a claim remains unpaid, undischarged, or not dismissed for
a period of 120 days.
a. City fails to comply with one or more terms of this Agreement.
13. Notice of Default. Should the B Corporation determine that City is in default according to
the terms of this Agreement, the B Corporation shall notify City in writing of the event of
default and provide 60 days from the date of the notice ("Cure Period") for City to cure the
event of default.
14. Results of Uncured Default by City. After exhausting good faith attempts to address any
default during the Cure Period, and taking into account any extenuating circumstances that
might have occurred through no fault of City, as determined by the Board of Directors of
the B Corporation, the following actions must be taken for any default that remains uncured
after the Cure Period.
a. City shall immediately repay all funds paid by B Corporation to them under this
Agreement.
b. Upon payment by City of all sums due, the B Corporation and City shall have no further
obligations to one another under this Agreement, and neither the City nor the B Corporation
may be held liable for any consequential damages.
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15. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or condition of
this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition
of the Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or condition of
this Agreement, justifies or authorizes the nonobservance on any other occasion of the
covenant or condition or any other covenant or condition of this Agreement.
c. It is expressly understood that if at any time City is in default in any of its conditions or
covenants of this Agreement, the failure on the part of the B Corporation to promptly avail
itself of the rights and remedies that the B Corporation may have, will not be considered a
waiver on the part of the B Corporation, but B Corporation may at any time avail itself of
the rights or remedies or elect to terminate this Agreement on account of the default.
16. Limitation of Liability. City/CCIA specifically agrees that B Corporation shall only be
liable to City/CCIA for the actual amount of the money grants to be conveyed to
City/CCIA, and shall not be liable for any actual or consequential damages, direct or
indirect, interest, attorney fees, or cost of court for any act of default by B Corporation
under the terms of this Agreement. Payment by B Corporation is strictly limited to those
funds so allocated, budgeted, appropriated and collected solely during the grant term of
this Agreement. B Corporation shall use its best efforts to anticipate economic conditions
and to budget accordingly. However, it is further understood and agreed that, should the
actual total sales tax revenue collected for any one year be less than the total amount of
grants to be paid to all contracting parties with B Corporation for that year, then in that
event, all contracting parties shall receive only their pro rata share of the available sales tax
revenue for that year, less B Corporation's customary and usual costs and expenses, as
compared to each contracting parties' grant amount for that year, and B Corporation shall
not be liable to for any deficiency at that time or at any time in the future. In this event, B
Corporation will provide all supporting documentation, as requested. Payments to be made
shall also require a written request from City/CCIA to be accompanied by all necessary
supporting documentation.
17. Appropriations. The parties mutually agree and understand that funding under this
Agreement is subject to annual appropriations by the City Council; that each fiscal year's
funding must be included in the budget for that year; and the funding is not effective until
approved by the City Council.
18. Notices. Any required written notices shall be sent mailed, certified mail addressed as
follows:
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City of Corpus Christi
Attn.: Assistant City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
B Corporation:
Corpus Christi B Corporation
Attn.: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
19. Amendments or Modifications. No amendments or modifications to this Agreement may
be made, nor any provision waived, unless in writing signed by a person duly authorized
to sign Agreements on behalf of each party.
20. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word
of this Agreement or the application of this Agreement to any person or circumstance is,
to any extent, held illegal, invalid, or unenforceable under present or future law or by a
final judgment of a court of competent jurisdiction, then the remainder of this Agreement,
or the application of the term or provision to persons or circumstances other than those as
to which it is held illegal, invalid, or unenforceable, will not be affected by the law or
judgment, for it is the definite intent of the parties to this Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full
force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under
present or future law effective during the term of this Agreement, then the remainder of
this Agreement is not affected by the law, and in lieu of any illegal, invalid, or
unenforceable clause or provision, a clause or provision, as similar in terms to the illegal,
invalid, or unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Agreement automatically.
21. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas.
22. Sole Agreement. This Agreement constitutes the sole Agreement between B Corporation
and City/CCIA. Any prior Agreements, promises, negotiations, or representations, verbal
or otherwise, not expressly stated in this Agreement, are of no force and effect.
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23. Survival of terms of Agreement and obligations of parties. The terms of this Agreement
and the obligation of the parties shall survive the termination of this Agreement.
Corpus Christi B Corporation: CITY:
Alan Wilson (Aug 20, 2025 15:38:55 CDT)
By: By:
Alan Wilsonm, President Heather Hurlbert, Assistant City Manager
Date:
Attest:
By:
20/08/25
g-z,ti -15
Date:
Attest:
By:
Rebecca Huerta, City Secretary Rebecca Huerta, City Secretary
APPRO D AS TO FORM:
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qu: ne S. Baz
Assistant City Attorney Date
CC B Corp MRG Agreement Legal Signed
Final Audit Report 2025-08-20
Created: 2025-08-20
By: Joe Escobar (joee2@cctexas.com)
Status: Signed
Transaction ID: CBJCHBCAABAASu5aakDTaEKg8zRwporolM9OIPvn0hG-
"CC B Corp MRG Agreement Legal Signed" History
'I Document created by Joe Escobar (joee2@cctexas.com)
2025-08-20 - 8:04:35 PM GMT
E? Document emailed to Alan Wilson (awilson@charterbankcc.com) for signature
2025-08-20 - 8:04:39 PM GMT
n Email viewed by Alan Wilson (awilson@charterbankcc.com)
2025-08-20 - 8:37:15 PM GMT
bo Document e-signed by Alan Wilson (awilson@charterbankcc.com)
Signature Date: 2025-08-20 - 8:38:55 PM GMT - Time Source: server
O Agreement completed.
2025-08-20 - 8:38:55 PM GMT
0 Adobe Acrobat Sign