CSI Aviation plans corporate headquarters move to Killeen Regional Airport; council approved build-to-suit lease and design-build agreement

KILLEEN, Texas — The Killeen City Council on May 6 approved agreements that will allow CSI Aviation to build and lease a 9,000-square-foot office headquarters at Killeen Regional Airport, a package of companion actions that city staff said could lead to as many as 35 new local, full-time positions over two years.

Airport staff and the aviation department presented a negotiated build-to-suit lease with CSI Aviation and a $5,184,833.30 design-build contract with Synergy Commercial Construction for site work and the office building, and a $125,000 professional services agreement with Garver LLC to serve as the city’s owner representative for construction oversight. The lease calls for a 10-year initial term with an automatic 10-year renewal and a starting monthly minimum guaranteed rent of $22,500 beginning June 1, 2026, with 3% annual increases on each anniversary.

Airport staff said CSI has been a tenant at the airport since 2018 and gradually has relocated operations from Albuquerque, New Mexico; the company reported 64 employees on site and expects to bring an estimated 35 higher-wage administrative jobs (average salary about $95,000) if the relocation and construction proceed. Synergy’s $5.18 million proposal was selected through the advertised RFQ process; Synergy met with CSI and aviation staff on design requirements and presented conceptual plans that guided the negotiated price.

Funding for the design-build work will come from a mix of sources staff described: approximately $1,000,000 from the governmental CIP fund balance, $684,834 from the water & sewer CIP fund balance, and roughly $3,500,000 expected from debt issuance or revenue bonds. The city will appropriate the expenditures as part of the FY25 year-end budget amendment, staff said.

Council members asked clarifying questions about the project’s effect on airport fuel sales and maintenance capability; aviation staff said the CSI maintenance presence helps regional air service (for example, quick maintenance that prevents flight cancellations) and would increase airport revenue from fuel and services. Staff recommended approval of the lease, the design-build contract, and the owner-representative agreement; council approved the consent package that contained those items.

The design-build approval also authorized the city manager to execute contract documents and change orders within limits set by law; Garver LLC will act as the owner’s representative for project administration and construction oversight as required by state law for design-build work. Ending

Staff said final construction timing will depend on permitting, design finalization and contractor scheduling; the city and CSI expect the new building to enable CSI’s headquarters move and potential job growth if the project proceeds as planned.