Houston City Council unanimously approved a significant agreement on March 20 to advance a $2.5 billion redevelopment project for Terminal B at George Bush Intercontinental Airport, in collaboration with United Airlines.
The project, which aims to revitalize Terminal B, had faced a delay of approximately five months due to concerns raised by the city controller’s office regarding financial terms and design plans for the redevelopment.
The approval process spanned two mayoral administrations, beginning with former Mayor Sylvester Turner and former Controller Chris Brown, and continuing under Mayor John Whitmire and Controller Chris Hollins, who assumed office in January.
Mayor Whitmire included the item on the agenda for the first time during his administration on March 6, signaling his commitment to advancing the project. Controller Hollins allowed the vote to proceed on March 20, leading to unanimous approval by council members of the initial part of the agreement.
The approved agreement will allocate $150 million from the Airport System Consolidated 2011 Construction Fund for a Memorandum of Agreement between the city and United Airlines.
The $2.5 billion expansion project is set to triple the capacity of Terminal B, including the addition of two new gate concourses, 22 domestic gates, upgrades to the south gate concourse, a new ticket and baggage hall, expanded curbs, a new baggage system, enhanced security checkpoints, and additional amenities.
In terms of financing, the city of Houston will contribute $624 million to the project in three installments, each requiring separate council approval. Melissa Dubowski, Houston’s Financial Director, outlined the financing components, which include special facility revenue bonds secured by lease payments from United and general airport revenue bonds.
United Airlines will cover the remaining $1.9 billion of the project cost.
Looking ahead, a feasibility study is currently underway and will be finalized before the issuance of special facility revenue bonds. An inducement resolution, indicating official intent, is scheduled for City Council consideration on March 27.
The issuance of special facility revenue bonds will necessitate council action, expected to occur in late spring. It is anticipated that these bonds will be issued in one or more series between late summer 2024 and summer 2025, with pricing and project closure estimated to take place between 2024 and 2026, according to a council presentation.
