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Res 50-2026 authorizing funding up to $300,000 to Cobra Kai Flight Academy, LLC 05/19/2026 Resolution No. 50-2026 Resolution approving the programs and expenditures of the Wichita Falls Economic Development Corporation (WFEDC, 4A) by authorizing funding up to $300,000 to Cobra Kai Flight Academy, LLC dba Aerospace N3xt, LLC to assist in facilitating initial pilot training for the United States Air Force at Kickapoo Airport in Wichita Falls WHEREAS, Texas Local Gov't. Code § 501.073(a) provides "The corporation's authorizing unit will approve all programs and expenditures of a corporation and annually review any financial statements of the corporation"; and, WHEREAS, on April 29, 2026, the Wichita Falls Economic Development Corporation's Board of Directors approved the project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The Cobra Kai Flight Academy, LLC dba Aerospace N3xt, LLC project described above of the Wichita Falls Economic Development Corporation is hereby approved. PASSED AND APPROVED this the 19th day of May, 2026. — MAYOR ATTEST: De ty City Clerk WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION PROJECT SUMMARY March 26, 2026 SUBJECT: Project Initial Flight School INITIATED BY: Moriah Williams Overview. Aerospace N3xt, LLC has been in business in Wichita Falls since 2012. They currently employ 2 full-time employees. In partnership with the US Air Force, Aerospace N3xt has identified the need to expand its operations to include a flight school program to train USAF Pilots in their initial flight training. This was previously done in Pueblo, Colorado and the program has since ceased to exist, therefore creating a void in training. The program will train the first 33 hours of flight school for future Sheppard Air Force Base US Air Force Pilot Training students, where they will then move on to train as USAF Pilots. The expansion will require classroom space, expanded hangar space, leased aircraft, and 10 new full-time employees paid an average annual salary of$65,000. Aerospace N3xt has negotiated and agreed to a training contract with the US Air Force to produce the initial flight school. The total investment for the project is $15M with $2M buildings and infrastructure. The Project: 10,000 square feet expansion to include classroom space will be added to the existing footprint of the leased building at Kickapoo Airport, retention of all existing full-time employees (2), and creating 10 new full-time positions. Local Incentive Proposal: The company is requesting the following from the Wichita Falls Economic Development Corporation: Forgivable loan in the amount of$300,000 paid out over two years and forgiven after 5 years. If benchmarks are met, forgiveness will be granted by retaining all existing employees and by adding 10 new full-time positions for a total of 12 full-time positions by the end of year 1. Recommendation: We recommend that a forgivable loan be paid out to Aerospace N3xt, LLC in the total amount of$300,000, paid out to the company over two years, with proof of investment, and executed contract with USAF and forgiven over 5 years for retaining all current employees and hiring 10 new full-time employees.