OSIDA details Burns Flat upgrades, sets aside PREP money for runway rehab and asks lawmakers for $25 million development fund

Craig Smith, executive director of the Oklahoma Space Industry Development Authority (OSIDA), told the House Appropriations and Budget Transportation A and B Subcommittee that Burns Flat spaceport has received multiple state investments and is beginning a series of pavement, lighting and utilities projects while attracting commercial tenants.

Smith said OSIDA has set aside about $17 million of PREP funds for phased runway and pavement rehabilitation, and that an on-site contractor began phase one work valued at about $3.8 million. A subsequent bid for phase two returned about $5.8 million, Smith said, and the authority expects several phases as it addresses runway spalling, joints, lighting and approach systems. The authority also described $4.25 million in ARPA funds for water and wastewater improvements; those bids came back higher than that amount, and OSIDA said it drew PREP funds to cover the difference so projects can move forward before federal ARPA deadlines.

Smith described operational and tenant developments at Burns Flat: - A 13,503‑foot runway: Smith noted the airport’s long runway (13,503 feet by 300 feet) as a unique statewide asset and said maintaining that pavement is a major capital priority. - New and expanding tenants: Smith said two large hangars are leased by a firm investing millions to rehabilitate space for wide‑body aircraft paint and MRO work, and that Kratos — which builds unmanned systems — is conducting testing at the field and using hangar space. Smith said the wide‑body tenant expects to employ “in the hundreds” in the local county over time. - UAS test infrastructure: the OSIDA presentation referenced radar and detection systems that support beyond‑visual‑line‑of‑sight testing; some of that capability has been funded through the state UAS program referenced earlier in the hearing.

OSIDA requests and proposed use of a development fund Smith told the committee OSIDA plans to request a $25 million development fund. He said a standing development fund is commonly used by airports and industrial authorities to respond quickly to potential site-ready opportunities, retain and attract business tenants, and to finance design so projects can be shovel-ready. Smith cited recent cases in which legislative or commerce-led pool funding helped the state respond quickly to a business interest and said a dedicated authority fund would let OSIDA make immediate offers or complete necessary site work while formal state appropriation processes continued.

Other updates and context - Utilities and security: OSIDA said ARPA-funded water and wastewater projects and a high‑speed fiber build are under way; the authority also plans to add cameras, proximity card access and improved perimeter surveillance after a security assessment from federal partners. - Industrial park: Smith emphasized an adjacent industrial park (the former base area) with existing streets and utilities — roughly 1,100 acres described in testimony — as a competitive advantage for attracting aerospace and defense firms. - Inland launch study: the OSIDA board approved an inland launch study to evaluate whether and what kinds of vertical or other launch activity might be feasible from Oklahoma; Smith framed the study as a way to define technical feasibility and marketability rather than as a commitment to build vertical launch pad infrastructure.

Committee exchange and timeline Representatives asked about project timelines and spending. Smith said phase one work started recently and that phase two was expected to begin in spring (the presentation cited a May start for the contractor). He said some runway work will require extended closures of the main runway and that the airport has a smaller secondary runway that can handle limited operations while major rehabilitation proceeds. Smith acknowledged ARPA spending deadlines (December 31, 2026) and said authority staff had reallocated some PREP funds to finish utility contracts when ARPA bids exceeded initial estimates.

Ending and follow-up Smith asked the committee to consider a capital development fund to allow the authority to move quickly on tenant opportunities and to cover small immediate expenses that cannot wait for legislative appropriation. He said OSIDA expects to make public announcements about a company locating to Oklahoma in the coming months.