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Developers propose private airport expansion; council raises funding and wastewater concerns

Smithville City Council · July 14, 2026
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Summary

Local developers offered to donate about 15 acres and privately build hangars, a fixed‑base operator and retail space at Smithville Crawford Municipal Airport; council members and staff pressed on lease terms, tax consequences of donated land, wastewater infrastructure and financing options and took no formal action.

Local developers presented a plan to expand the Smithville Crawford Municipal Airport on land adjacent to Loop 230, offering to donate roughly 15 acres to the city and to fund hangar construction and associated infrastructure while the city would retain ownership and operational control.

"Our proposal includes the conditional donation of approximately 15 acres of land to the city for the expansion of the airport," said Matt Gretzner, who identified himself as a Bastrop native, land broker and pilot. Joining him, JJ Lawrence of Teaton Waters described proposals for nearly 86,000 square feet of hangar space, a two‑story fixed‑base operator with a pilot lounge and cafe, and phased retail and office development.

Developers said the project would generate immediate development‑impact fees, lease revenue and jobs. "We're going to pay to build the hangars and all of the infrastructure and then lease the land back from the city at a fixed rate," a developer representative said, noting the team had not settled on a lease number.

Council members and staff focused questions on key terms and city risks. Robert Entreuther, the city's economic development director, said the city's attorney and financial adviser had pushed back on the initial proposal because it could grant too much control to private partners and delay revenue capture. He recommended pursuing options the city could manage itself, including revenue bonds tied to future hangar leases.

Several council members and residents raised whether the city would lose taxable property if it accepted donated acreage. Staff also flagged wastewater infrastructure as a gating constraint: multiple speakers noted that sewer capacity and lift‑station work along Loop 230 must be addressed before later phases of retail or hotel development could proceed.

Residents who spoke during public comment expressed mixed views. "There's an instant revenue generator there" from hangar leases, said resident Tyler Friscella, while also warning against overreliance on bonds that depend on uncertain future revenues.

Council members praised the local origin of the development team but declined to take action on the proposal. City staff said the project will need legal review, discussion with the airport board, and more detailed financial terms before coming back to council.