The City of Houston has a total commitment of $624 million to be paid in 12 and 24 months. United is expected to contribute more than $1.9 billion on the development project that’s needed to triple its capacity.
The Houston City Council was not able to approve funding Wednesday that would jump-start United Airlines’ Terminal B project at Bush Intercontinental Airport.
New City Controller Chris Hollins halted the spending of $150 million towards a plan that sparked heated debates last year.
Council members hit the same roadblock last November with former city controller Chris Brown, whose term ended in December. Brown, who was supposed to sign off on the first installment in early November, was concerned about how the deal would impact city finances if United ran into financial issues. The paused funding caused the former controller and former Mayor Sylvester Turner to go head-to-head for several weeks.
United is the only airline that operates out of Terminal B, opening in 1969, and the city says it’s outdated. The plan calls for 40 new gates for domestic and international travel, new amenities, reconstruction of its north concourse to provide 22 narrow-body gates, replace 18 large regional gates on the south concourses, and over 3,000 new jobs.
Other upgrades include expanding curbside and roadway capacity, ticketing lobby, baggage system, a security processing area expected to be housed on the terminal’s third floor, and two new concession hubs to house food and retail vendors.
The City of Houston has a total commitment of $624 million to be paid in 12 and 24 months. United is expected to contribute more than $1.9 billion on the development project that’s needed to triple its capacity.
The city sent a press release on Friday announcing the item would appear on Wednesday’s agenda, and council members were prepared to approve the first installment. Whitmire said he sees no reason to continue delaying the funding, but the deal will eventually get done.
“The controller has a job to do and I respect that,” he said. “I’ll be in touch as we have been with the controller, the finance department, our new aviation director and my office. I personally have reviewed it and I believe it’s time to certify and move, but I respect his responsibility.”
The delay in the funding from former Controller Brown pushed the matter into the new administration. The City of Houston recently appointed Jim Szczesniak as the new airport director replacing Mario Diaz.
“The economics of this project are excellent for Houstonians, more than a 25% return on a Net Present Value basis,” said Szczesniak in a press release. “More than a renovation, this project is a declaration of our commitment to progress and innovation, solidifying Houston’s position as a global aviation hub while setting a new standard for airport excellence.”
John Seydler, a spokesperson for Hollins said the controller did not have a comment at this time and discussions are still ongoing with the parties involved.