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https://www.bizjournals.com/houston/...erminal-b.html

TURBULENCE IN FUNDING

United Airlines' expansion project has experienced a long layover — but that may soon change.

By Sofia Gonzalez – Reporter, Houston Business Journal
Jan 12, 2024

United Airlines' (Nasdaq: UAL) Terminal B expansion project layover may soon come to an end now that it's in the hands of Houston's new administration.

Funding for the airline's $2.6 billion project at George Bush Intercontinental Airport (IAH) has been delayed over and over thanks to a nearly two-month withhold by former City Controller Chris Brown.

Originally, Brown withheld the item for $150 million in funding on Nov. 8 — preventing the city’s final stamp of approval on the project. With the funding for the Terminal B expansion project moving forward to the new administration, the item will now be overseen by City Controller Chris Hollins, who was officially sworn in during a Jan. 2 ceremony.

The Terminal B redevelopment project will modernize and triple the capacity of the current facility, which was built in 1969. Once the redevelopment is complete, Terminal B will span 765,000 square feet across three levels and will have 22 mainline, narrow-body gates.

Brown previously said his office wanted to do their due diligence to ensure taxpayer dollars are being protected.

“In recent weeks, my staff has visited with the Houston Airport System (HAS) to address the concerns we’ve outlined from day one,” Brown said in an updated statement to Houston Business Journal. “As of [Dec. 20] my office [had] yet to receive an updated feasibility study regarding the financing of the proposal.”

United said it will be responsible for $1.9 billion of the costs, while the city expects to fund $624 million. The request for appropriation of the funds will be done in several segments, and will come from the HAS enterprise fund.

According to city documents, the enterprise fund is “established to account for city operations that are financed and operated in a manner similar to private business enterprises where the cost of providing goods or services to the general public is financed primarily through user charges.”