RECOMMENDATION:
Enact an ordinance appropriating $250,000.00 out of the HAS Consolidated ITRP AMT Construction Fund pursuant to the Airport Use and Lease Agreement with United Airlines, Inc., for moving fees to exit Terminal C North at George Bush Intercontinental Airport/Houston (IAH). (Project No. 830)
SPECIFIC EXPLANATION:
On June 18, 2014, City Council enacted Ordinance 2014-0631, authorizing a Memorandum of Agreement (Original MOA) with United Airlines, Inc. (United), related to the IAH Terminal Redevelopment Program (ITRP). Following passage of the Original MOA, the City of Houston and United entered into additional agreements related to Terminals B and C in support of ITRP.
On April 1, 2015, City Council enacted Ordinance 2015-0270, Amendment No. 2 to the Airport Use and Lease Agreement for Terminal C, appropriating $36,500,000.00. The Amendment approved an early termination fee, in the same sum, and payable by the City to United in exchange for terminating the lease prior to its expiration date of December 31, 2027, permitting United to vacate Terminal C North.
The parties have completed components of the ITRP scope as outlined in the Original MOA, including completion of a new concourse known as “New C North,” and a connector to Terminal D, and United has met its obligations to the early move from Terminal C North to the New C North concourse. Accordingly, it is now requested that City Council approve an appropriation of $250,000.00 for the payment of United’s moving fees.
CIP Fiscal Note:
No significant Fiscal Operating impact is anticipated as a result of this project.
Director’s Signature:
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Mario C. Diaz
Houston Airport System