ORDINANCE authorizing the Issuance, Sale and Delivery of Airport System Special Facilities Revenue Bonds (United Airlines, Inc Catering Operations Facility Project), Series 2025 (AMT) and providing for the Security thereof; approving and authorizing the Execution and Delivery of a Trust Indenture, a Special Facilities Lease Agreement, and Other Related or Ancillary Transaction Agreements; approving the Form, Use and Distribution of a Preliminary Official Statement and an Official Statement; making certain findings with respect thereto and containing other provisions relating to the subject; and declaring an emergency

RECOMMENDATION:
Approve an ordinance authorizing the issuance, sale and delivery of Airport System Special Facilities Revenue Bonds (United Airlines, Inc. Catering Operations Facility Project), Series 2025 (AMT) (the “Series 2025 Bonds”). Approving and authorizing the execution and delivery of a supplemental trust indenture, a special facilities lease agreement, and other related or ancillary transaction agreements; approving the form, use and distribution of a Preliminary Official Statement and an Official Statement; making certain findings with respect thereto and containing other provisions relating to the subject; and declaring an emergency.

SPECIFIC EXPLANATION:
The Series 2025 Bonds will finance(i) the development, design, construction, acquisition, and equipping of a catering operations facility at George Bush Intercontinental Airport/Houston (the “Airport”) to be leased to United Airlines, Inc. (“United”); and (ii) to pay certain costs of issuance of the Series 2025 Bonds. The new facilities will consist of an approximately 230,000 square foot facility, which will replace the current 130,000 square foot kitchen. The new facility is expected to feature advanced automation systems for tray setup, warehouse storage, and cart setup, along with 50 total docks (34 inbound and 16 outbound) expected to support production of approximately 14,000 meals per day. The portion of the project to be financed with special facility bonds will not exceed $220 million.

The Series 2025 Bonds are secured solely by and payable from special facility lease payments made by United under separate special facility leases for each series of Bonds. The Series 2025 Bonds will not constitute an indebtedness of the City. No holder of any Series 2025 Bonds shall have the right to demand payment of any funds raised or to be raised by taxation and may not be repaid in any circumstances from tax revenues. In addition, the Series 2025 Bonds shall not constitute obligations of the City’s Airport System secured with revenues of the Airport System, nor will revenues be pledged or made available to repay any of the Series 2025 Bonds. The Series 2025 Bonds are scheduled to be priced on Tuesday, November 18, 2025, and a separate ordinance will be presented to City Council on November 19, 2025, to approve such pricing.

This Transaction was presented to the Budget and Fiscal Affairs Committee on July 29, 2025.



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Melissa Dubowski, Chief Business Officer/Director of Finance Chris Hollins, Houston City Controller

Alma Tamborello                                    Phone: 832-393-9099