What happened
The project was delayed for approximately five months, receiving several blocks from the city controller’s office citing a “lack clarity” on the financial terms and design plans for the redevelopment.
The process of getting approval from the controller's office spanned two mayoral administrations, dating back to the terms of former Mayor Sylvester Turner and former Controller Chris Brown, before being passed on to Mayor John Whitmire and Controller Chris Hollins, both of whom took over in January.
Whitmire placed the item for a vote on the agenda March 6 for the first time under his administration with hopes of moving the project forward.
Hollins allowed the vote to move forward at the March 20, and council members unanimously approved the first part of the agreement that will appropriate $150 million out of the Airport System Consolidated 2011 Construction Fund for a Memorandum of Agreement between the city and United.
In case you missed it
The $2.5 billion expansion project is expected to triple the capacity of the existing Terminal B at Bush Airport and include two new gate concourses, 22 domestic gates, upgrades to south gate concourse, new ticket and baggage hall, expanded curbs, and a new baggage system, as well as new security checkpoints and additional amenities.
Funding the project
The city of Houston will allocate $624 million to the total cost of the project in three tranches, which will each need its own separate council vote.
Houston Financial Director Melissa Dubowski said the two components of financing the project include the use of special facility revenue bonds and general airport revenue bonds.
According to a council presentation, the special facility revenue bonds are solely secured by lease payments from United and are not secured by general airport or city revenues.
United will fund the remaining $1.9 billion cost of the project.
Next steps
Dubowski said a feasibility study is underway and will be completed prior to issuance of the special facility revenue bond.
- An inducement resolution, also known as a declaration of official intent, will be brought to City Council on March 27 for a vote.
- Issuance of the SFRB will require council action, which is expected to be considered in late spring.
- The city anticipates issuing an SFRB in one or more series in late summer 2024 and summer 2025.
