* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [Economic Development Committee on May 28, 2025.] [00:00:11] IT'S WEDNESDAY, MAY 28TH, 2025, AND THE TIME IS 2:00 PM I'M COUNCILMAN FRED FLICKINGER, PRESIDING CHAIR OF THE ECONOMIC DEVELOPMENT COMMITTEE. CALLED THIS MEETING TO ORDER. UH, WANTED TO WELCOME COUNCILMAN JULIAN RAMIREZ. AND THEN WE HAVE, OH, ALSO COUNCILMAN ALCORN AND COUNCILMAN JOAQUIN MARTINEZ. I DIDN'T SEE Y'ALL SNEAK IN THERE. UM, WE'VE ALSO GOT STAFF FROM COUNCILMAN CASTILLO'S OFFICE, OR, UH, AMY PECK'S OFFICE. COUNCILMAN MARTHA CASTEX TATUM, AND ALSO, UH, COUNCILMAN MARIO CASTILLO. I THINK THAT'S EVERYBODY. MM-HMM . UM, THE MEETING'S OPEN TO THE PUBLIC AND IS BEING HELD IN PERSON AND VIRTUALLY WE'RE ALSO BROADCASTING VIA HOUSTON HTV COUNCIL MEMBERS AND STAFF. PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THE PRESENTATION. IF YOU WOULD LIKE TO ASK A QUESTION IN OUR PRESENT IN THE CHAMBER REQUEST TO SPEAK, OR IF YOU'RE JOINING VIRTUALLY, TYPE REQUEST TO SPEAK IN THE CHAT POD AND YOU'LL BE RECOGNIZED IN ORDER. YOU'LL BE ADVISED WHEN THE TWO MINUTES HAVE EXPIRED, COUNCIL MEMBERS ATTENDING VIRTUALLY. PLEASE USE THE CHAT POD IF YOU EXPERIENCE ANY PROBLEMS. THERE ARE NO MEMBERS OF THE PUBLIC WHO SIGNED UP TO SPEAK TODAY. IF THERE ARE ANY PUBLIC SPEAKERS PRESENT HERE IN THE CHAMBER WHO WISH TO SIGN UP TO SPEAK, THERE IS A SIGNUP SHEET AT THE FRONT TABLE ON YOUR RIGHT. PUBLIC SPEAKERS WILL HAVE A CHANCE TO SPEAK AFTER THE CONCLUSION OF THE PRESENTATIONS. ANY QUESTIONS CAN BE ME EMAILED TO DISTRICT K@HOUSTONTX.GOV, AND WILL BE FORWARDED TO THE RESPECTIVE DEPARTMENTS FOR RESPONSES. UH, ON THE AGENDA, HOUSTON AIRPORT SYSTEM DIRECTOR JIM CESAC, WILL PRESENT ON THE HOUSTON AIRPORT UPDATE. DIRECTOR CESAC, THANK YOU FOR BEING HERE. PLEASE PROCEED WITH YOUR PRESENTATION. COUNCILMAN HUFFMAN HAS ALSO JOINED US ONLINE. ALL RIGHT, YOU, I'M PUTTING IT UP. WANNA GO AHEAD AND START, WANNA GO AHEAD AND STARTED? WE'LL WORK THROUGH IT. SURE. SO I CAN, I CAN START. UM, SO AGAIN, WHEN WE PULL THE PRESENTATION UP, I'LL, I'LL CATCH UP, UH, WHAT SLIDES WE NEED, UH, JUST, YOU KNOW, KIND OF GIVING A LITTLE UPDATE ON WHAT WE'RE GONNA DO TODAY. UM, SO WANNA DO A LITTLE OUTLOOK FOR SUMMER 2025. UM, YOU KNOW, TALK ABOUT SOME OF THE EXPERIENCE IMPROVEMENTS THAT WE'VE BEEN DOING FROM A CUSTOMER PERSPECTIVE. UM, SOME UPDATES ON THE CONSTRUCTION PROJECTS THAT ARE HAPPENING AT THE AIRPORTS. UH, A LOOK AT SOME OF OUR UPCOMING APPROPRIATION REQUESTS. AND THEN WE WANT TO GIVE YOU A LITTLE FLAVOR OF EVALS AND KIND OF WHAT THOSE LOOK LIKE IN THE, UM, IN THE HOUSTON MARKET, UM, FOR US. SO IF WE GO AND TALK ABOUT SUMMER OF 2025, UH, WE'RE ANTICIPATING ABOUT 19.5 MILLION PASSENGERS THROUGH BOTH AIRPORTS. SO THAT'LL BE A NEW RECORD FOR US. UM, THAT IS MAINLY DRIVEN BY THE FACT THAT, UM, UNITED IS GONNA BE ADDING A SIGNIFICANT, UM, AMOUNT OF TRAFFIC THROUGH BUSH AIRPORT. UM, AND SO, UH, WE'LL ANTICIPATE WHAT WE'LL SEE SOME INCREASES AT BUSH. UH, ALSO INTERNATIONAL CARRIERS. SO WE ARE SEEING AN INCREASE IN INTERNATIONAL TRAVEL, UM, THROUGH THE BUSH AIRPORT. HOBBY MIGHT BE A, UH, WE'RE ANTICIPATING THAT ACTUALLY IT'LL BE A LITTLE LOWER THAN LAST YEAR, AND THAT'S DRIVEN BY THE FACT THAT, UM, SOUTHWEST AIRLINES HAS A CHALLENGE, UM, GETTING THE AIRPLANES NECESSARY, UH, TO KEEP THEIR FLEET GROWING. UM, SO THEIR 7 37 700 MAXES ARE AGING OUT OF THE FLEET, AND THERE ARE SEVEN MAXES THAT THEY'RE TRYING TO REPLACE THEM WITH, UM, ARE NOT CERTIFIED YET FROM BOEING. AND SO, UM, THEY HAVE KIND OF A DELAY GETTING AIRCRAFT, AND SO THAT'S IMPACTING SOME OF THE TRAFFIC DOWN AT HOBBY. UH, BUT IN ORDER TO DEAL WITH THAT, UM, WE ARE ANTICIPATING, UM, SOME NEW ADDITIONS AT THE AIRPORTS. SO FOR TERMINAL A, UM, WE'RE GONNA BE ADDING A NEW, UH, SECURITY, UH, CHECKPOINT LANE THERE. SO THAT'LL HELP WITH SOME OF THE, THE TERMINAL A, UM, SECURITY LANES THAT, OR LINES [00:05:01] THAT WE HAVE THERE. UH, FOR TERMINAL E, UM, ALL 17 LANES ARE BEING INSTALLED RIGHT NOW. UM, WE'RE, UH, BASICALLY GETTING SOME OF THE NEW EQUIPMENT, SWAPPING OUT SOME OF THE OLD, UM, SO BY THE SUMMER WE'LL HAVE A LOT OF THE, UH, NEW EQUIPMENT THAT'S GONNA BE IN TERMINAL E. UM, AND THEN WE HAVE RECENTLY JUST OPENED THE CLEAR OPERATION AT, UH, TERMINAL E. AND SO NOW WE HAVE THE FULL COMPLEMENT OF THE STANDARD LANE, THE GOLD LANE, YOUR TSA PRECHECK, AND THE TSA, UM, SORRY, AND THE CLEAR LANE THERE NOW, UH, FOR TRAVELERS USING TERMINAL E. UH, AND AGAIN, ALL THE EQUIPMENT THAT WE'RE INSTALLING IS THE NEW EQUIPMENT THAT ALLOWS YOU TO KEEP YOUR LAPTOPS AND YOUR LIQUIDS IN YOUR BAGS. UM, SO AGAIN, SEEING A LOT OF PROGRESS THERE. IF WE SEE WHAT IS ALSO REQUESTED, UM, FOR THE SUMMER, WE ARE GONNA BE HAVING A CHANGE WITH TRAFFIC AT, UH, TERMINAL B, UH, LEADING TO TERMINAL A. AND SO WHAT WE HAVE IS THE TERMINAL B PROJECT ITSELF. UH, THAT'S, AGAIN, THAT'S THE $2.55 BILLION, UH, REDO OF TERMINAL B. UM, THERE'S A LOT OF UTILITIES THAT ARE IN THE ROAD, UH, THAT ARE IN FRONT OF THE TERMINAL. AND SO IN ORDER FOR US TO SUCCESSFULLY DO THE PROJECT, WE HAVE TO CONNECT ALL THE UTILITIES, AND THEN WE'VE ALSO GOTTA BUILD A BAGGAGE BRIDGE ACROSS THE ROADWAY AND THEN THE PASSENGER BRIDGE THAT LEADS FROM THE TERMINAL TO THE NEW CONCOURSES. AND SO THAT'S A LOT OF WORK THAT WE COULD HAVE DONE TWO WAYS. ONE IS A VERY LONG PERIOD WHERE WE COULD HAVE DONE IT AT NIGHTLY CLOSURES. UH, WE WOULD'VE SEEN IMPACTS FROM A TRAFFIC PERSPECTIVE TO THE NIGHT BANK THAT GOES ON IN TERMINAL A. AND THERE'S A LOT MORE UNCERTAINTY ON THAT BECAUSE OF THE FACT THAT EVERY NIGHT WE WOULD'VE TO DIG UP THE ROAD AND YOU NEVER KNOW WHAT YOU'D FIND UNDERNEATH THERE. AND THEN TRYING TO ESTABLISH, UM, THE WORK IN THE MORNING WOULD'VE BEEN DIFFICULT. UM, WE DID AN AN OPTION WHERE WE HAVE A THREE MONTH CLOSURE WHERE WE CLOSE THE ENTIRE ROADWAY, AND THAT ALLOWS US TO BASICALLY DIG UP THE ROAD. AND IF WE COME INTO, UM, CHALLENGES THERE, WE HAVE THE ABILITY TO, UH, TO DEAL WITH THE CHALLENGES BECAUSE WE'VE GOT NO PRESSURE ON US TO BASICALLY REDO THE ROAD AT THAT POINT EVERY DAY. AND SO IT GETS US A LOT MORE CERTAINTY, UM, FOR THAT, THAT TIMEFRAME. AND IT'S A SHORTER WINDOW. AND SO WE'VE BEEN TESTING IT FOR THE LAST TWO WEEKS. UM, SO WE PUT THE, THE, THE DETOUR IN PLACE AND WE DID NOT TOUCH THE ROAD BECAUSE IF IT FAILED, WE WANTED THE ABILITY TO BASICALLY GO THERE AND REOPEN THE ROAD AND AND RESTORE IT. UM, AND SO WE, WE DID IT, UH, PRE, UH, MEMORIAL DAY TO KIND OF GET THE KINKS WORKED OUT OF IT, AND THEN WE TESTED IT DURING MEMORIAL DAY. DURING THAT TIME. WE DO HAVE THE TRAFFIC DATA THAT SHOWS THAT BASICALLY WE DIDN'T REALLY SEE ANY IMPACT, UM, YOU KNOW, BESIDES THE FACT THAT IT'S A LITTLE BIT LONGER, UM, UH, QUEUE. AND IF YOU WANNA GO TO THE NEXT SLIDE, IT ACTUALLY SHOWS THE VIDEO THAT, UM, THERE WE GO. NOW YOU'LL SEE THE VIDEO OF THIS DETOUR OVER HERE. UM, SO WITH THE DETOUR, WE, WE, WE DIDN'T SEE ANY CHANGES TO THE TRAFFIC PATTERN. IT IS A LITTLE BIT LONGER ROUTE, AND YOU GOTTA DRIVE THROUGH CONSTRUCTION SITE, AND SO IT'S A LITTLE BIT SLOWER AS YOU DO THAT TURN. SO THAT ADDS A LITTLE BIT OF TIME, BUT NOTHING, UH, UH, EGREGIOUS. AND THEN WE DID HAVE, UM, A TRAFFIC ACCIDENT IN THERE. AND SO AS PART OF OUR MITIGATION TO THAT, UH, WE'RE GONNA HAVE A TOW TRUCK ON STANDBY FOR THAT, THE DURATION OF THE PROJECT. UM, AND THEN ALSO THE TRAFFIC LIGHT THERE AS THE MARRIOTT IS CONTROLLED BY A POLICE OFFICER. UH, AND HE HAS A SPOTTER TO KIND OF HELP HIM, UH, USE THE LIGHT PROPERLY TO MAKE SURE THAT THE TRAFFIC FLOWS THROUGH THERE. UM, AGAIN, THAT'S GONNA START NOW WHERE WE ACTUALLY GO INTO THE FULL PHASE ON IT AND DO THE CONSTRUCTION. AND WE'RE ANTICIPATING THAT WILL BE DONE ABOUT AUGUST 31ST. NEXT SLIDE, PLEASE. YEP. AND YEAH, THAT'S THE VIDEO THERE. ALRIGHT, NEXT SLIDE PLEASE. OKAY. UM, ANOTHER THING THAT WE'RE ADDING TO THE AIRPORT NOW IS WE'RE GONNA BE OPENING OUR NEW INTEGRATED, UH, COORDINATION CENTER. UM, AND SO THIS IS GONNA REALLY HELP US AS THE AIRPORT, UH, RESPOND TO THINGS MORE QUICKLY, UH, BECAUSE WE HAVE A LOT OF, UH, OPERATIONAL GROUPS THAT ARE RESPONSIBLE FOR DIFFERENT THINGS IN DIFFERENT PARTS OF THE AIRPORT. AND THIS IS NOW GONNA BRING THEM ALL TOGETHER SO THAT WE HAVE THE ABILITY TO, UM, REALLY TACTICALLY ATTACK THE AIRPORT AND MAKE SURE THAT WE CAN SOLVE THE ISSUES THAT WE'VE GOT. SO THE EXAMPLE WOULD BE IS, IS THAT WE WILL NOW HAVE OUR TRADITIONAL DISPATCH THAT'S IN THERE, AND THEY'LL BE SITTING NEXT TO MAINTENANCE DISPATCH. WE'LL BE SITTING NEXT TO GATE CONTROL, WHICH WE'LL BE SITTING NEXT TO OUR LANDSIDE OPERATIONS, WHICH WILL BE SITTING NEXT TO THE TSA. THE TSA IS ALSO GONNA HAVE A PRESENCE THERE. AND THEN WE'LL HAVE HPD PRESENCE THERE. AND SO YOU'LL HAVE THIS BIG, UM, KIND OF, UH, AREA WHERE EVERYBODY CAN COORDINATE THERE. AND THEN WE'LL HAVE SOME CENTRAL PERSON THAT CAN, UM, CONTROL ALL THIS. AND SO THEN AGAIN, WHEN WE HAVE WEATHER INCIDENTS OR BAGGAGE SYSTEM PROBLEMS OR MAINTENANCE ISSUES, WE HAVE THE ABILITY WHERE EVERYBODY'S IN THERE, UH, TO BE ABLE TO, TO WORK TOGETHER ON THAT. UH, AND THEN IT HAPPENS TO BE JUST ABOVE OUR EMERGENCY OPERATIONS CENTER, SO THAT IF WE DO HAVE AN INCIDENT OR ACCIDENT AT THE AIRPORT, WE HAVE THE ABILITY THAT IT'S VERY EASY FOR US TO BE ABLE TO HAVE ALEC LARGER PRESENTATION THERE, UM, TO BE ABLE TO DO [00:10:01] A RESPONSE TO ANY KIND OF INCIDENT OR ACCIDENT THAT WE'VE GOT THERE. LET'S SEE HERE. UM, SO TECHNICAL LOOK AT, OKAY. OKAY, NEXT SLIDE THERE. BACK ON. AND THEN NEXT SLIDE. SO WE'RE, YOU KNOW, AGAIN, WORKING ON IMPROVING THE ARRIVALS AND DEPARTURES PROCEDURES AT THE AIRPORT. UM, JUST WANTED TO SHARE A LITTLE DATA THAT WE'VE GOT ON OUR TRAFFIC ANALYSIS FOR THE AIRPORT. SO THIS IS FROM JANUARY 1ST OF THIS YEAR UNTIL APRIL 30TH. AND AS YOU CAN SEE, WE'RE VERY HAPPY TO REPORT. WE HAD ZERO SEVERE TRAFFIC. UM, AND THEN FROM A, A HEAVY TRAFFIC, IT WAS, YOU KNOW, VERY DI MINIMIS. AND EVEN OUR MODERATE TRAFFIC WAS VERY SMALL. SO AGAIN, SEEING, YOU KNOW, WITH AN INFRASTRUCTURE WE'VE BEEN ABLE TO DELIVER, UH, AND THE HARD WORK OF OUR EMPLOYEES, WE'VE GOT SOME SIGNIFICANT, UM, IMPROVEMENTS IN TRAFFIC AND, AND HOBBY. YOU CAN SEE THAT THE TRAFFIC, UM, THAT WE'VE GOT AT HOBBY IS VERY, YOU KNOW, KIND OF MINUSCULE. UM, YOU KNOW, SO AGAIN, ALWAYS WORKING ON IT, VERY COGNIZANT OF WHAT WE DO, BUT AGAIN, WE'VE BEEN HAVING SOME SUCCESSES AND WE'RE VERY PROUD TO CELEBRATE THAT. NEXT SLIDE, PLEASE. OTHER THINGS THAT WE'RE TRYING TO DO ARE IMPROVE THE LOOK OF THE AIRPORT. UM, SO I KNOW THE MARE IS A STICKLER ON THE LOOK OF THE AIRPORT, AND, UM, ONE OF THE THINGS HE'S NOT A FAN OF IS THE GUM. UM, AND SO SOME OF THAT GUM AT THE AIRPORT'S, 50 TO 60 YEARS OLD. AND WE HAVE TRIED CHEMICALS, WE HAVE TRIED SANDBLASTING BEAD BLASTING, ALL KINDS OF THINGS TO GET IT OFF, UH, WITH, YOU KNOW, MAR MARGINAL SUCCESS. AND SO WHAT WE'RE GONNA DO IS, UM, YOU'LL SEE IT, UH, ROLLING OUT RIGHT NOW AT TERMINAL A IS, IS WE HAVE TO, WE'RE GONNA PUT AN EPOXY TRAFFIC COATING ON IT. AND SO THEN THAT WAY WE CAN KIND OF COVER OVER IT AND, AND HOPEFULLY START ANEW AND, AND REALLY GO THERE, UH, AND KEEP IT, KEEP THAT FRESH LOOK. 'CAUSE AGAIN, IT'S THE, THE, THE FRONT OF THE AIRPORT AND WE WANNA MAKE SURE THAT WE'VE GOT A GOOD APPEARANCE THERE. NEXT, UH, SLIDE PLEASE. UH, AGAIN, WE'RE ALSO, UH, MAKING SURE THAT WE HAVE A GOOD PROGRAM FOR PRESSURE WASHING. AND SO, AGAIN, THIS IS A, YOU KNOW, OUR, OUR KIND OF GLAMOR SHOT RIGHT AFTER IT GETS DONE. BUT THOSE CURBS DO TAKE QUITE THE ABUSE. AND SO WE'VE GOT A FOCUSED EFFORT NOW WHERE WE PRESSURE WASH THOSE CURBS ON A REGULAR BASIS TO KEEP THAT AGAIN, FRONT LO UH, FRONT DOOR LOOKING PRETTY GOOD. NEXT SLIDE, PLEASE. UH, OTHER ENHANCEMENTS THAT WE'VE ADDED FOR CANOP P UH, AT TERMINAL A. SO AT TERMINAL A, THE RENTAL CAR BUS AREA THAT, IF YOU CAN LOOK AT THE BRIDGE THAT'S UP IN THE, IN THE SKY THAT CROSSES OVER. UM, THAT WAS KIND OF THE BUS SHELTER PRIOR. SO IF WE HAD INCLEMENT WEATHER FROM A RAIN PERSPECTIVE, OR, UM, THE HEAT AND THE SUN, UH, PASSENGERS HAD TO KIND OF CRAM UNDERNEATH THERE AND IT, IT WASN'T A VERY GOOD EXPERIENCE. SO WE'VE INSTALLED THOSE NEW BUS SHELTER STYLE THINGS, UH, ON THE, ON THE CURB. AND SO THAT KIND OF KEEPS THE PASSENGERS OUTTA THE WEATHER. NEXT SLIDE, PLEASE. ALSO, FOR THE, UM, UBER AND LYFT OPERATION AT TERMINAL SEA, UH, WE'VE GOT A LOT OF FEEDBACK FROM THE PUBLIC ABOUT THE, THE, THE CELL SERVICE DOWN THERE. AND SO WE INSTALLED, UM, A, A DEDICATED WIFI NETWORK DOWN THERE SO THAT YOU CAN MAKE SURE THAT YOU CONNECT WITH YOUR DRIVER, UH, IF THE CELL SERVICE ISN'T QUITE WORKING DOWN THERE. NEXT SLIDE, PLEASE. UM, AGAIN, ONE OF THE THINGS THAT WE ALSO WANNA MAKE SURE THAT WE DO IS IMPROVE THE PARKING EXPERIENCE FOR THE AIRPORT. AND SO, NEXT SLIDE PLEASE. UM, WHAT WE'VE DONE IS A BUNCH OF CHANGES AND SO, UM, WE'VE KIND OF HELPED INCREASE SOME OF THE WAY FINDING IN THE GARAGE THAT WE, WE GET A LOT OF, UM, YOU KNOW, KIND OF FEEDBACK ON THE, ON THE CON CONFUSION THAT THE GARAGE PRESENTS. AND SO ACTUALLY IN THE NEXT, I THINK IT'S TWO WEEKS, YOU'LL SEE A PACKAGE COME BEFORE CITY COUNCIL, UH, FROM AN APPROPRIATION TO BE ABLE TO DO A, A COMPLETE REDO OF THE TERMINAL C DE GARAGE WAYFINDING SIGNAGE PROGRAM. SO WE, WE APPRECIATE YOUR SUPPORT IF YOU GIVE IT TO IT. UH, BUT IT IS ONE OF THOSE THINGS THAT'S REALLY GONNA HELP US WITH, UH, FEEDBACK THAT WE GET FROM THE TRAVELING PUBLIC ABOUT THE GARAGE AND IT'S CONFUSION. UM, BUT WE'RE DOING LITTLE THINGS RIGHT NOW, BUT WE'RE GONNA DO A COMPREHENSIVE, UH, RESIGNING OF THE GARAGE. NEXT SLIDE PLEASE. ADDITIONALLY, THE ECO PARK BUSES THAT SHUTTLE, UH, FOLKS TO THE REMOTE LOTS, WE ARE CURRENTLY IN THE PROCESS OF RE UH, REPLACING THEM ALL. SO WE'VE GOT ABOUT, UM, 15 CURRENTLY BRAND NEW BUSES IN CIRCULATION WITH, UH, 36 EXPECTED BY JUNE. SO AGAIN, RE REFRESHING ALL THOSE. NEXT SLIDE PLEASE. UH, ADDITIONALLY TO RENTAL CAR SHUTTLE BUSES. UM, SO AGAIN, WE ARE INCREASING THAT FLEET SIZE FROM 15 UP TO 18 DURING PEAK. AND SO THAT'S AGAIN GONNA HELP US WITH THE, UH, UH, VOLUMES THAT WE'RE EXPECTING THIS SUMMER TO BE ABLE TO JUST MAKE SURE THAT WE'VE GOT GOOD FREQUENCY TO BE ABLE TO GET FOLKS TO THE RENTAL CAR FACILITY. NEXT SLIDE PLEASE. AND THEN THE CONTINUED ROLLOUT. OUR NEW PARKING SYSTEM. SO WE ARE COMPLETE WITH THE PARKING SYSTEM, UPGRADED HOBBY. UH, WE HAVE COMPLETED THE CDE GARAGE AT BUSH AND ECO PARK TWO, AND WE ARE IN THE PROCESS OF FINISHING OFF THE AB GARAGE. AND THEN THE MAIN ECO PARK, AGAIN, THE SYSTEM IS BASED ON, UM, LICENSE PLATE RECOGNITION. UM, AND SO IT MAKES IT REALLY TRANSACTION FREE, UM, FOR THE TRAVELER 'CAUSE IT READS THEIR LICENSE PLATE, BRINGS THE GATE UP, YOU PARK, YOU LEAVE, YOU RAISE YOUR LICENSE PLATE OUT YOU GO AND IT CHARGES YOUR CREDIT CARD. AND IF YOU DON'T DO THAT, UM, VIA RESERVATION, IT DOES, UH, DO THE, THE [00:15:01] MODERN SYSTEMS NOW WHERE YOU CAN TAP TO PAY WITH YOUR PHONES, UM, OR YOUR CREDIT CARDS. NEXT SLIDE PLEASE. AND WE'RE SEEING, ACTUALLY VERY GOOD RESPONSE TO THAT BECAUSE WE SEND OUT A POST PARKING SURVEY TO THE TRAVELING PUBLIC. AND SO FOR FOLKS THAT RE USE THE RESERVATION SYSTEM IN THE GARAGE, SO WE'LL SEND 'EM AN EMAIL AND IF THEY WANNA FILL IT OUT. AND SO THIS IS THE NET PROMOTER SCORE FOR THE GARAGE. AND SO IF YOU LOOK AT HOBBY, UM, THOSE TWO, UM, YOU KNOW, 50 AND 45, UM, THAT WAS THE NORMAL STATE OF HOBBY, UM, PRIOR TO THE INSTALLATION OF THE NEW SYSTEM. UM, AND WHEN YOU LOOK AT THE 75 AND 73, THAT IS THE NEW SYSTEM BEING THERE. UM, WE CUT OUT A LOT OF THE FRUSTRATION WITH THE OLD SYSTEM, NOT READING YOUR BARCODES AND, AND THOSE KIND OF CHALLENGES. SO A HOBBY IS, IS VERY, UM, POSITIVELY RECEIVED. IF WE LOOK AT BUSH, UH, AGAIN, WE HAD A NEGATIVE, UM, AND THAT'S AGAIN, DUE TO THE OLD SYSTEM. AND AT THAT TIME ALSO, WE WERE DEALING WITH THE TRAFFIC ISSUES THAT WE HAD ON THE, ON THE BUSH ROADWAYS THAT WOULD CLOG UP THE GARAGE EXITS. AND SO WITH THE NEW PARKING SYSTEM AND THE NEW, UM, CHANGES TO PARKING, OR SORRY, THE ROADWAYS THAT WE'VE, YOU KNOW, KIND OF WORKED UP THROUGH THE, A LOT OF THE TRAFFIC ISSUES THERE, UH, WE'VE SEEN THAT NEGATIVE TURN INTO A POSITIVE 30. UM, AND WE ANTICIPATE THAT ONCE WE GET THE AB GARAGE FULLY INTO THE, UM, NEW SYSTEM AND THE ECO PARK, WE'LL SEE THOSE NUMBERS AGAIN, CONTINUE TO CLIMB. NEXT SLIDE. UH, AGAIN, ALWAYS FOCUSING ON MAKING SURE OUR RESTROOMS ARE NICE AND CLEAN. NICE. UH, NEXT SLIDE PLEASE. UM, YOU KNOW, THEY DO GET A LOT OF PRESSURE. SO IF YOU LOOK AT THE FIRST QUARTER OF 2025, UH, JUST THE TERMINAL A AND TERMINAL D AND THE INTERNATIONAL FACILITY, UH, RESTROOMS, WE HAD MORE THAN 5 MILLION PASSENGERS GO THROUGH THOSE. UM, HOBBY HAD ABOUT 3 MILLION PASSENGERS, UH, USE THE RESTROOM. SO AGAIN, THEY ARE HEAVILY, HEAVILY TAXED. NEXT SLIDE, PLEASE. UH, BUT THE GOOD NEWS NOW IS, IS THAT HOBBY, IF YOU SEE ON THE RIGHT, IS ABOUT 95%, UM, WHERE WE GET THE POSITIVE, UH, SMILEY FACE. UH, AND THAT'S TYPICAL FOR HOBBY. UM, BUSH HAS ACTUALLY INCREASED SIGNIFICANTLY. UH, YOU KNOW, IT USED TO BE SOMEWHERE IN THE, IN THE EIGHTIES, UM, BUT WE'RE NOW, WE'RE IN THE MID NINETIES AND THAT'S AGAIN, DUE TO THE NEW D WEST BATHROOMS. UH, SO WE'RE GETTING A LOT OF PEOPLE THAT ARE HITTING THE POSITIVE ON THAT, THAT THEY LIKE IT. AND THEN THE NEW WOMEN'S RESTROOM THAT WE OPENED AT, UM, GATE A EIGHT AREA, UM, THAT WHAT'S GETTING A LOT OF POSITIVE FEEDBACK. NEXT SLIDE, PLEASE. UH, WE THANK YOU FOR YOUR SUPPORT. 'CAUSE AGAIN, THAT IS THE PART OF THE $30 MILLION THAT YOU APPROVED FOR US TO DO BATHROOM RESTAURANT RENOVATIONS AT THE AIRPORT SYSTEM. THIS IS A PHOTO OF THE NEW ONE THAT WE JUST OPENED AT HOBBY NOT TOO LONG AGO AGAIN. SO NEXT TIME YOU'RE THERE, YOU CAN GO BETWEEN GATE, UH, 24 AND 27, AND THAT'S A BRAND NEW RESTROOM THAT WE'VE RECENTLY INSTALLED. NEXT SLIDE, PLEASE. AND AGAIN, WE ARE VERY ACTIVELY ENGAGED IN TRYING TO UPGRADE THE, UH, RESTROOMS AT THE AIRPORT BECAUSE THEY'RE IN, IN, IN IN GREAT NEED, UH, TERMINAL A RESTROOMS ARE, ARE REALLY OLD. UM, SO IF YOU SEE, WE DO HAVE, UM, A PROGRAM GOING ON RIGHT NOW, AND THIS IS SOME OF THE, THE ACTUAL CONSTRUCTION SITES, UM, OR, UH, FLY, UH, PHOTOS. SO WE HAVE DEMOED A LOT OF IT AND WE ARE STARTING TO BUILD BACK SOME OF THOSE RESTROOMS. UH, AGAIN, WE'RE HOPING TO HAVE OUR FIRST SET OF RESTROOMS OPENED IN, IN A, UH, BUSH SOMETIME LATER THIS SUMMER TO EARLY FALL. UH, THAT'S AGAIN, UH, AGAIN, WE'RE GONNA DO A COMPREHENSIVE, ALL THE RESTROOMS AT A, UM, ALSO ALL THE RESTROOMS AT D WILL BE REDONE. AND THEN THE STERILE CORRIDOR, WE'RE ADDING A RESTROOM THERE. SO THAT'S THE, THE AREA IF YOU COME IN AS AN INTERNATIONAL PASSENGER, UH, WHEN YOU WALK THE HALLWAY TO GET TO CUSTOMS, UH, PUTTING IN A RESTROOM THERE TO BE ABLE TO HELP HELP FOLKS THAT, UM, YOU KNOW, KIND OF, IT'S A LONG WALK BETWEEN SOME OF THE GATES AND THE, THE CUSTOM FACILITY WHERE YOU CAN GET, UH, A RESTROOM RELIEF. SO THAT'S A, A NEW, UH, AMENITY THAT WE'RE KIND OF ADDING. AND THEN AGAIN, CONTINUING TO ROLL OUT, UM, NEW RESTROOMS AT HOBBY. NEXT SLIDE, PLEASE. UM, WE ARE ALSO, AGAIN, COORDINATING WITH UNITED AIRLINES. SO THEY CONTROL THE RESTROOMS IN TERMINALS C AND E AS PART, AS PART OF OUR TERMINAL B FINANCE PACKAGE THAT WE DID WITH UNITED. WE PUT IN THE PROVISIONS THAT THEY WERE REQUIRED TO REDO ALL THE RESTROOMS AND TERMINAL C AND E IF THEY WANTED ACCESS TO THE MONEY, AND THEY'RE PROGRESSING. SO THEY HAVE COMPLETED, UM, THEIR DESIGN PROCESS WITH THAT, AND THEY'RE SECURING A CONTRACTOR TO BEGIN DOING THEIR, UM, BUILD OUT, UM, ON THEIR RESTROOM UPGRADES THAT THEY'RE GONNA HAVE TO DO. SO ESSENTIALLY IN THE NEXT COUPLE YEARS, ALL THE RESTROOMS AT BOTH OF THE AIRPORTS WILL BE BRAND NEW. NEXT SLIDE, PLEASE. UH, AGAIN, CONTINUING TO UPDATE THE, UH, RETAIL DINING EXPERIENCE AT THE AIRPORT'S. ALSO VERY IMPORTANT FOR THE PA UH, TRAVELING PUBLIC. NEXT SLIDE, PLEASE. AND SO AT, UM, HOBBY, WE'VE GOT SOME BRAND NEW DINING OPTIONS THERE. UM, SO THE RUSTIC IS NOW OPEN THERE, UH, AND DOES INCLUDE LIVE, UH, MUSIC, UH, IN THAT, IN THAT VENUE. AND, UH, IT'S DOING FANTASTIC AS FAR AS FROM A, A, A REVENUE AND A PASSENGER EXPERIENCE PERSPECTIVE. ADDITIONALLY, WE'VE OPENED THE, UH, NEW CHICK-FIL-A PAYWAY, UH, [00:20:01] THE, UH, THEIR FOOD HALL THAT'S ON THE, ON THE WEST PIER. AND THE NEXT SLIDE, PLEASE. AND THEN PRE-SECURITY. WE'VE OPENED AGAIN, THE NEW STARBUCKS THERE, AND THEN ALSO THE THROUGH GOOD BISTRO. UM, AND THE, AGAIN, THAT'S THE PRE-SECURITY AREA. NEXT SLIDE, PLEASE. AT BUSH, WE'VE HAD SOME NEW ADDITIONS THERE. SO WE'VE GOT OUR NEW DUTY FREE STORE THAT'S RIGHT THERE IN THE D WEST PIER. UM, ADDITIONALLY WE'VE OPENED THE HIP AND HUMBLE IN THE D WEST PIER. UM, IN THE UNITED PART OF THE TERMINAL. THEY'VE OPENED A NEW GARRETT'S, UH, POPCORN THERE. SO I STAY AWAY FROM THERE 'CAUSE THAT STUFF IS ADDICTIVE. UM, AND THEN WE'VE GOT THE NEW H TOWN THAT OPENED UP IN THE, UH, NEW INTERNATIONAL TERMINAL WHERE YOU COME OUT OF CUSTOMS. SO THIS IS, AGAIN, FOR FOLKS THAT ARE LEAVING CUSTOMS OR A LOT OF THE METERS AND GREETERS, UM, IT GIVES THEM THEM AN OPTION THAT'S DOWN IN THE NEW FACILITY. NEXT SLIDE, PLEASE. UH, NEXT SLIDE. WE'VE GOT SOME NEW AIR SERVICE. SO GOOD, UH, NEWS ON THE, UH, ZIP AIR. SO THEY LAUNCHED IN MARCH, THEIR FLIGHTS FROM HOUSTON TO TOKYO. UM, WE ARE, YOU KNOW, VERY EXCITED ON THAT BECAUSE OF THE FACT THAT THEY ARE SEEING A 93% LOAD FACTOR. SO THAT'S THE PERCENTAGE OF SEATS SOLD IN THAT FIRST MONTH. UM, THAT'S VERY GOOD FOR NEW SERVICE. UM, SO WE'RE VERY HAPPY TO HAVE THAT. UH, AND THEN ALSO WE DID KEEP AN EYE ON A NA AND, UM, UNITED, WHO ALSO SERVED THAT TOKYO MARKET. AND THEIR PLANES ARE PRETTY FULL TOO. SO THE GOOD THING IS IT SEEMS LIKE WE'VE GROWN THE PIE, NOT DIVIDED THE PIE. AND SO, UM, WE'RE, WE'RE HAPPY FOR THEM. NEXT SLIDE, PLEASE. UM, AGAIN, WE ARE SEEING STRONG INTERNATIONAL GROWTH, PARTICULARLY WITH OUR MEXICAN MARKETS. UM, SO AGAIN, IN, UH, APRIL WE HAD UNITED AT PORTO, ESCONDIDO, UM, WE'VE GOT VALIS TO MONTEREY. AND THEN IN JULY WE'RE GETTING ANOTHER, UH, SLUG OF, OF, UH, RIS ADDITIONS. AND THEN VEEVA ABUS ALSO COMING OUT OF THE NEW MEXICO CITY AIRPORT. UH, YOU'LL ALSO SEE COMING INTO THE AIRPORT NOW, A, A KIND OF CAMPAIGN THAT WE'RE PUSHING, UM, SO THAT FOR WORLD CUP, UM, THAT IF YOU ARE WANTING TO COME TO THE UNITED STATES AND EXPERIENCE WORLD CUP, WE THINK IT'D BE GREAT IF YOU STAYED IN HOUSTON, SPENT YOUR MONEY HERE AND STAYED, AND THEN WHEN YOU NEED TO GO TO KANSAS CITY, WE CAN CATCH A FLIGHT AND SEND YOU TO KANSAS CITY AND YOU CAN GO SEE THE GAME, THEN YOU CAN FLY BACK HERE. UM, SO THAT'S KIND OF OUR, OUR DESIRE. SO YOU'LL SEE THAT KIND OF ROLLING OUT, TRYING TO MAKE HOUSTON THE CENTER OF WORLD CUP BECAUSE IN GENERAL, UM, YOU CAN GET TO ALL THE VENUES WHERE THE WORLD CUP ARE, UH, OUTTA HOUSTON IN ROUGHLY THREE HOURS, UM, WITH THE EXCEPTION TO KIND OF VANCOUVER. UM, THAT'S A LITTLE BIT LONGER, BUT, UM, YOU KNOW, AGAIN, IT'S A GOOD, GOOD PLACE FOR US TO BE IS IF YOUR SOCCER FAN IS HERE IN HOUSTON. NEXT, UH, SLIDE PLEASE. AND THEN AGAIN, DOMESTICALLY, UH, SALINA, KANSAS. WE ADDED ON UNITED AND PORTLAND, MAINE. AND THEN ALSO WE JUST RECENTLY HAVE LAUNCHED GULF STORES, ALABAMA ON ALL LEGION OUT OF HOBBY. AND THEN WE'LL BE, UH, OPENING UP WILMINGTON, NORTH CAROLINA ON AVELO, UH, IN JUNE. NEXT SLIDE PLEASE. SO THIS IS AGAIN, UPDATE ON TERMINAL B IN THE CONSTRUCTION THERE. NEXT SLIDE. UM, SO AGAIN, THIS IS ULTIMATELY WHAT IT WILL LOOK LIKE. UH, AGAIN, WE ARE REPLACING THOSE CIRCLE PIERS WITH THE NEW TWO CONCOURSES AND THEN THE EXPANSION TO THE, THE TERMINAL. AND THEN AGAIN, FROM UNITED PERSPECTIVE, THE LARGEST UNITED CLUB IN THEIR, UH, NETWORK WILL BE IN THIS FACILITY. NEXT SLIDE, PLEASE. AND SO THIS KIND OF JUST SHOWS YOU A LITTLE PROJECT PRO PROGRESS. SO IN LITTLE MORE THAN A YEAR, THIS IS WHAT IT USED TO LOOK LIKE. AND THEN NEXT SLIDE PLEASE. UM, THIS IS THE MAY KIND OF CONSTRUCTION THAT YOU CAN SEE SIGNIFICANT PROGRESS ON THERE. YOU CAN SEE THE OUTLINE OF THE TWO PIERS. UH, THE BLUE AREA ON THE TOP IS THE NEW TERMINAL, UM, THE EXPANSION THAT YOU SEE THERE. SO THAT'S KIND OF ALL GETTING BUILT OUT. UM, AND THEN YOU CAN KIND OF SEE THE, THE ROADWAY IN BETWEEN THE TERMINALS, AND YOU CAN IMAGINE HOW MUCH, UH, UTILITIES AND ROAD WORK THAT HAS TO GO ON IN BETWEEN THOSE AREAS. AND THAT'S AGAIN, WHY WE, WE DID THAT, THAT DETOUR. NEXT SLIDE, PLEASE. UM, AT DOWN, AT HOBBY, WE'RE AGAIN CONTINUING TO EXPAND, UM, DOWN AT HOBBY. SO NEXT SLIDE. AGAIN, WE'RE JUST A REMINDER THAT'S SOUTHWEST. UM, YOU KNOW, AN EXPANSION WITH SEVEN GATES DOWN THERE, SIX OF 'EM DEDICATED TO SOUTHWEST, AND ONE OF 'EM DEDICATED TO THE CITY. SO THAT ALLOWS US TO GO GET SOME ADDITIONAL, UM, AIR SERVICE OUTTA HOBBY FROM AN AIRLINE PERSPECTIVE. UH, THAT ALSO INCO INCLUDES THE CANOPY. SO THE TOP RIGHT, YOU'LL SEE, I'M SORRY, THE BOTTOM RIGHT, YOU'LL SEE THE, THE NEW CANOPY THAT'S GONNA BE BE THERE, UM, WITH THE, YOU KNOW, SINCE WE'RE SPACE CITY, THE SPACE MOTIF ON THAT. AND THEN IF YOU LOOK ON THE BOTTOM OF THAT SLIDE, YOU'LL SEE, UH, THE NEW SKYLIGHTS THAT ARE GONNA BE PUT IN THERE FOR THE BAGGAGE, UH, HALL. UM, SO WE CAN POP THE SKYLIGHTS IN THERE AND BRING SOME NATURAL LIGHT INTO THE DARK, UM, BAGGAGE HALL. NEXT SLIDE, PLEASE. SO IF YOU GO OUT ONTO THE PIER, I'VE GOT SOME ARTIST RENDERINGS OF WHAT IT'S GONNA LOOK LIKE. SO IF YOU'RE IN THEIR EXISTING, UM, THEY'VE GOT SOME KIND OF WARM WOOD TONES IN THE CEILINGS AND ON THE WALLS, UM, WE WILL CONTINUE THAT. SO IT WON'T REALLY STYLISTICALLY BE A LOT DIFFERENT, BUT AS YOU GET IN THERE, YOU'LL SEE WE'RE GONNA BRING IN A LOT OF NATURAL LIGHT THROUGH THE CEILING, BUT MAKE SURE THAT IT COMES IN DIFFUSED. UH, AND THEN WE'RE GONNA HAVE THAT NICE FEATURE, UH, WINDOW WALL [00:25:01] AT THE FAR END. UH, THAT IS GONNA GIVE YOU A GREAT, UM, LOOK OUT ONTO THE AIRFIELD. NEXT SLIDE, PLEASE. UH, AGAIN, THE CONCOURSE GATES. SO IF YOU'RE LOOKING AT THAT, IT'LL BE, AGAIN, VERY SIMILAR AND, AND, AND DESIGN TO THE EXISTING CONCOURSE GATES OVER THERE. UH, WITH, AGAIN, THE, THE, THE, THE SEATING IN THERE WILL ALL HAVE, UH, INEA POWER IN THERE. SO YOU'LL BE ABLE TO CHARGE YOUR DEVICES. UH, AND THEN WE'RE PLANNING ON PUTTING SOME KIND OF AN ART, UH, DISPLAY ABOVE EACH GATE AREA JUST TO GIVE IT A LITTLE, UM, YOU KNOW, GOOD ARTISTIC LOOK TO THE FACILITY. NEXT SLIDE, PLEASE. UH, THIS IS, AGAIN, SOME PROGRESS. SO YOU CAN SEE ON THE BAGGAGE, UH, UPGRADES. SO YOU CAN SEE ON THE LEFT OVER THERE THAT SOME OF THE CEILING IS TAKEN OUT, AND YOU CAN SEE HOW LOW THE CEILING IS AND HOW DARK AND, AND, AND UNINVITING IT IS DOWN THERE. UM, ON THE RIGHT IS THE RENDERING WHERE YOU'LL SEE WE BRING IN THAT SKYLIGHT AND THE NATURAL LIGHT THERE. UM, WHICH WOULD WE GET A, AGAIN, A GREAT IMPROVEMENT TO HOBBY, UH, AGAIN, AND THEN CAROUSELS. WE CURRENTLY HAVE FOUR. WE WILL GO FROM FOUR TO SIX. NEXT SLIDE, PLEASE. JUST HERE'S SOME CONSTRUCTION PROGRESS ON HOBBIES. SO ON THE LEFT YOU'LL SEE THE, THE COLUMNS THAT ARE BEING PUT OUT THERE FOR THE PEER EXTENSION ON THE RIGHT IS, AGAIN, THE BAGGAGE, UH, FOUNDATION OF THE BAGGAGE BUILDING THAT'S GONNA BE BUILT THERE FOR THE NEW BAGGAGE SYSTEM. NEXT SLIDE, PLEASE. AND AGAIN, HERE ON THE LEFT IS THE NEW RESTROOM THAT'S BEING BUILT IN THE BAGGAGE CLAIM. SO IF YOU GO DOWN THERE, YOU'LL SEE THE WALLS THAT ARE KIND OF THE TEMPORARY WALLS THERE. WE'RE BUILDING A NEW AND EXPANDED, UH, RESTROOM DOWN IN THE BAGGAGE CLAIM, UH, AGAIN, HOPING TO HAVE THAT OPEN LATER THIS SUMMER. UH, AND THEN ON THE RIGHT YOU'LL SEE THE, AGAIN, THE, UH, BA FOUNDATIONS FOR THE BAGGAGE, UH, SYSTEM BUILDING. NEXT SLIDE, PLEASE. UH, INTERNATIONAL TERMINAL DEVELOPMENT AT IAH. UH, NEXT SLIDE. UM, SO THIS IS AN UPDATE OF WHAT WE'VE DONE. SO AGAIN, WE'VE COMPLETED THE WEST PIER WITH THE NEW GATES THERE. I WAS IN THERE TODAY, IT WAS JAM PACKED. UM, WE'VE COMPLETED THE REFRESH OF THE EXISTING TERMINAL, AND AGAIN, THAT FACILITY WAS LOOKING VERY NICE AND AGAIN, VERY FULL. UH, OUR COM UH, GARAGE EXPANSION HAS BEEN COMPLETED. AND THEN THE LAST TWO REMAINING PIECES OF WHAT WE'RE WORKING ON RIGHT NOW IS THE ACTUAL TICKETING HALL. UM, AND THAT WE'VE COMPLETED THE UNITED AIRLINE SIDE OF THE BUILDING, AND WE ARE WORKING ON THE FOREIGN FLAG SIDE OF THE BUILDING. AND THEN THE BUILDING ON THE TOP RIGHT, THE SLIVER ONE, THAT IS THE BAGGAGE BUILDING THAT WE'RE BUILDING FOR THE, THE SYSTEM. SO, UM, THAT'S WHERE WE SIT RIGHT NOW. NEXT SLIDE, PLEASE. THIS IS JUST A, YOU KNOW, KIND OF, AGAIN, SHOWING OF THE RENDERINGS OF WHAT'S HAPPENING IN THERE. UH, AGAIN, THIS FACILITY HAS BEEN A VERY, WE'RE WE'RE GETTING VERY POSITIVE FEEDBACK FROM THE TRAVELING PUBLIC ON THAT. IT'S LIKE, WOW, THIS IS, UM, REALLY AMAZING PIECE OF INFRASTRUCTURE, UH, FROM HOUSTON. IT REALLY WOW PEOPLE, AND THEY COME IN THERE. NEXT SLIDE, PLEASE. UH, AGAIN, WE ARE VERY HAPPY THAT WE'VE GOT OUR NEW CURBS. SO JUST A KIND OF PAINFUL REMINDER PHOTO OF WHAT IT USED TO LOOK LIKE THERE ON THE LEFT. UH, BUT NOW, UM, AS OF, UH, YOU KNOW, AGAIN, THAT CHRISTMAS TIME PERIOD, WE OPENED THE LOWER LEVEL TO BE ABLE TO, UH, UH, GET THOSE ARRIVALS. A GREAT THING IS, IS NEXT TIME I'LL BE AROUND OR NEXT TIME YOU'RE AT THE AIRPORT, UM, THE ART DISPLAY ON THE FAR WALL IS, IS ALMOST COMPLETE. UM, AND SO YOU'LL SEE INSTEAD OF A, JUST A PLAIN OLD GARAGE, WE'VE GOT A GREAT ART PIECE THAT'S IN THERE. SO IT'S GREAT FOR WHEN YOU'RE WAITING FOR YOUR FLIGHT TO BE ABLE TO LOOK AT THAT. NEXT SLIDE, PLEASE. UH, THE TERMINAL E TICKETING LOBBY, AGAIN, IS OPEN. SO YOU'VE GOT, AGAIN, THE UNITED OPERATION THAT ALLOWS YOU TO CHECK IN THERE. UM, AGAIN, THE NEW TSA CHECKPOINT THAT IS THERE WITH OUR, UH, AGAIN, GREAT ART DISPLAY ABOVE IT, UM, AND THE NEW MACHINERY. AND THEN AGAIN, THE TICKETING LOBBY HAS THAT GREAT NEW 11 LANE CURB, UM, THAT ALLOWS A LOT OF CAPACITY UP THERE. SO IT'S, AGAIN, TRAVELERS ARE LOVING IT. IT'S VERY EASY. YOU BASICALLY RIDE UP THERE, DROP OFF, AND IN THE BUILDING YOU GO AND, AND RIGHT THROUGH TSA NEXT SLIDE PLEASE. UM, WE ARE IN THE PROCESS RIGHT NOW OF INSTALLING THE OCULUS ALSO, SO THE MECHANICS OF IT. UM, SO AGAIN, IF YOU, YOU THINK ABOUT THE SPHERE IN VEGAS, UM, THIS IS BASICALLY A STRIP VERY SIMILAR TO THAT. UM, SO IT'S, AGAIN, THAT'S GONNA BE THAT SENSE OF PLACE THAT WE'RE GONNA, UH, UH, OFFER BECAUSE OF THE FACT THAT YOU'RE GONNA WALK OUT OF CUSTOMS AND THIS WILL BE WHAT GREETS YOU. AND SO WHAT YOU SEE ON THE SCREEN RIGHT NOW IS KIND OF A RENDERING OF ONE OF THE VIGNETTES THAT THAT'LL RUN ON THERE. THEY'RE ROUGHLY FOUR MINUTES A PIECE, AND THEY'RE ALL KIND OF DEDICATED TO, UM, THINGS THAT ARE HOUSTON BASED. AND SO, YEAH, OBVIOUSLY IN THIS ONE WE'VE GOT THE WATER WALL, UH, AND THEN WE'VE GOT A DANCE TROUPE FROM THE HOUSTON AIRPORT THAT KIND OF DANCES IN THERE. AND SO YOU'LL SEE THAT. UM, WE'VE GOT OTHER COOL ONES. THERE'S ACTUALLY A VERY, MY FAVORITE KIND OF ONE IS, UH, THERE'S A SPACE ONE, AND THEN THERE'S ALSO ONE WITH THE PORT. UM, AND IT'S, THE PORT ONE'S ACTUALLY PRETTY IMPRESSIVE TO SEE THERE, BUT THERE'S A BUNCH OF 'EM. SO, UH, ONCE WE GET THAT OPEN AND UP LATER THIS SUMMER, UM, THAT'LL BE A GREAT ADDITION FOR, FOR THAT. WELCOME TO HOUSTON IN HERE. NEXT SLIDE, PLEASE. UH, AGAIN, NEW BAGGAGE HANDLING SYSTEM IS WHAT WE'RE REALLY WORKING ON RIGHT NOW. AND SO THAT, AGAIN, THAT BUILDING ON THE RIGHT IS, IS BASICALLY A BIG BUILDING WITH BAGGAGE SYSTEMS IN IT. UH, IF YOU LOOK ON THE PICTURE ON THE LEFT, THAT'S KIND OF THE INTERIOR AND WHAT IT LOOKS LIKE. AND IT'S JUST CONVEYORS [00:30:01] AND MACHINES AND ALL KINDS OF FUN STUFF IN THERE. IT'S NOT, NOT, NOT VERY SEXY, BUT IT'S VERY IMPORTANT FOR US BECAUSE OF THE FACT THAT THAT'S THE HEART OF, OF THE OPERATION. NEXT SLIDE, PLEASE. UM, WITH THAT, WE DO HAVE AN ADDITIONAL APPROPRIATION THAT'S GONNA BE COMING FORWARD FOR THAT PROJECT. AND SO WE'VE GOT, UM, SOME ADDITIONAL FUNDS THAT WE NEED FOR THE BAGGAGE SYSTEM OVER THERE. SO WE HAD SOME, SOME, YOU KNOW, UH, INFRASTRUCTURE CHALLENGES WHEN WE WERE BUILDING THE BUILDING. AND THEN ALSO TRADITIONALLY THE TSA WOULD, UH, PROVIDES THE, THE MACHINES TO INSPECT. UH, THEY'RE STILL DOING THAT, BUT THEY WOULD ALWAYS, THEY WOULD ALSO BUY A BACKUP POWER SYSTEM. UM, THEY HAVE BASICALLY, UH, PUT THAT ON THE AIRPORTS NOW TO PROVIDE THAT. AND SO WE'RE GONNA HAVE TO PROVIDE THE BACKUP POWER. UM, WITH THAT, UM, WE'VE GOT SOME ADDITIONAL TSA SCOPE THAT WE'VE ADDED. SO AGAIN, THIS BUILDING WAS CONTEMPLATED AND DESIGNED BACK, UH, PRIOR TO, YOU KNOW, 2018. AND, YOU KNOW, SINCE 2018, TSA HAS CHANGED SOME OF THE RULES AND REGS, AND SO WE HAVE TO ADD SOME ADDITIONAL INFRASTRUCTURE TO THE, TO THE FACILITY ON THE OCULUS SUPPORT. AGAIN, WHEN IT WAS ORIGINALLY DESIGNED, IT WAS ANTICIPATED THAT IT WOULD BE FED AND POWERED OUT OF A IDF ROOM OUT IN THE CORNER OF THE, THE LOWER LEVEL, UM, THAT IS TOO FAR OF A RUN. AND THEN THE, THE, UH, ELECTRONICS THAT ARE POWERING IT, UH, PRODUCE TOO MUCH HEAT FOR THE, THE, THE WAY THE ROOM WAS DESIGNED. SO WE HAD TO BUILD AT ITS OWN BASICALLY, UH, COMPUTER ROOM TO BE ABLE TO POWER IT. UM, SO THAT WAS AN ADDITIONAL AD THAT WE HAD TO DO THAT. UM, WE HAD SOME EXISTING CONDITION MITIGATION. SO EXAMPLE OF THAT ONE WOULD BE, UM, WE NEEDED MORE PRESSURE TO PUSH WATER UP, UH, TO THE GARAGE WHEN WE, WHEN WE ADDED THE EXTRA FLOORS ON THERE, UH, THE PUMPS WERE, WERE GOOD. THE ONLY PROBLEM IS THE LEGACY, UH, PRESSURE RELEASE VALVES WERE NOT, UM, YOU KNOW, SCOPED PROPERLY TO BE ABLE TO HANDLE THE NEW PRESSURES THAT WE NEEDED TO BE ABLE TO PUMP THE WATER ALL THE WAY UP TO THE TOP, UH, OF THE GARAGE. AND SO WE HAD TO REPLACE THOSE. UM, ALSO, UH, SOME ADDITIONAL MONEY BECAUSE WE HAD SOME OP UH, COSTS WITH THE OPENING FACILITATION. SO IF YOU THINK ABOUT THE BUILDING, ORIGINALLY, IT WAS SCOPED TO ALL OPEN AT ONCE, UM, BUT WE OPENED IT IN PHASES, AND THAT WAS REALLY TO PROVIDE THE TRAFFIC RELIEF THAT WE NEEDED AT THE AIRPORT. UM, I DON'T THINK ANYBODY'S REALLY GONNA COMPLAIN ABOUT GETTING RID OF THAT OLD INTERNATIONAL RIVALS CURB. WE HAD TO SPEND SOME MONEY TO BE ABLE TO OPEN THAT THING EARLY. UH, AND THEN GETTING THE NEW INTERNATIONAL RIVALS, UM, YOU KNOW, OR TERMINAL E OPERATIONS FOR UNITED OVER THERE. UM, AND THEN AGAIN, THAT UPPER LEVEL CURB OPENED, UH, TO BE ABLE TO OPEN THOSE, WE HAD TO SPEND SOME MONEY TO BE ABLE TO GET THAT DONE SOONER. UM, AND THEN ALSO SOME TESTING. WE'VE GOT SOME ADDITIONAL TESTING THAT WE NEED TO DO WITH ALL THE, UH, UH, THE EQUIPMENT THAT WE'VE GOT IN, IN THERE. UM, WE'RE ALSO GONNA HAVE A FUTURE COUNCIL ACTION. SO THIS UPCOMING APPROPRIATION YOU SHOULD SEE PROBABLY IN THE NEXT COUNCIL MEETING OR TWO. UM, WE'VE GOT ANOTHER FUTURE COUNCIL ACTION THAT'S GONNA COME, AND THAT'S PROBABLY THREE OR FOUR COUNCIL MEETINGS FROM NOW. UM, WE'RE GONNA NEED A SMALL AMOUNT OF ADDITIONAL MONEY FOR SOME ADDITIONAL COMMISSIONING WORK. AND THEN WE ARE GONNA DO A, A, BASICALLY A, A FUNDING TRANSACTION TO BE ABLE TO TAKE OUT, UH, OUR TEMPORARY COMMERCIAL PAPER THAT'S IN THE TERMINAL AND REPLACE IT WITH PASSENGER FACILITY CHARGES THAT WE'VE GOT. UM, SO THAT'S JUST A, BASICALLY A, A A WAY FOR US TO TAKE SOME, UH, TEMPORARY SHORT-TERM DEBT AND REPLACE IT WITH SOME MORE LONG-TERM FUNDS IN THERE. NEXT, UM, SLIDE PLEASE. UH, THE GOOD THING FOR THE AIRPORT SYSTEM THOUGH IS WE ARE IN THE PROCESS OF GOING OUT FOR A, A, A BOND TENDER VERY SHORTLY. UM, AND WE DID GET OUR RECENT RATINGS FROM THE RATING AGENCIES, UM, AGAIN, SO THE, THEY, OUR, OUR RATINGS WERE REAFFIRMED. UH, WE ARE INVESTMENT GRADE AND OUR OUTLOOK IS STABLE. UM, AND AGAIN, FOR AN S AND P, WE'RE, UH, AN A PLUS. IF WE LOOK AT PURE AIRPORTS, UH, WE'RE PRETTY MUCH AS HIGH AS WE CAN GO. WE MIGHT BE ABLE TO GO UP ONE MORE NOTCH, BUT THAT'S THE HIGHEST NOTCH AVAILABLE. AND IT'S NOT REALLY ANYTHING, UM, YOU KNOW, THAT WE, WE KNOW WE STRIVE FOR IT, BUT IT'S NOT, IT DOESN'T MAKE A MATERIAL DIFFERENCE IN OUR BOND FUNDING. NEXT SLIDE, PLEASE. UH, JUST SOME UPDATES ON ELLINGTON AIRPORT. SO THE NEXT SLIDE, PLEASE. UM, SO WE, YOU KNOW, AGAIN, THE, THE, WE APPROPRIATED SOME FUNDS TO BE ABLE TO DO A HANGAR DEVELOPMENT. UH, AGAIN, TEXAS SOUTHERN UNIVERSITY IS GONNA BE THE, THE PRIME TENANT IN THERE. UM, SO AGAIN, WE ARE, YOU CAN SEE THAT ON THE LEFT. WE DO HAVE A NICE, UH, CONSTRUCTION PROGRESS PHOTO ON THAT. AND AGAIN, WE ARE ANTICIPATING THAT WE WOULD BE OPENING THIS FACILITY, UH, SOMETIME IN THE FALL. THIS WOULD AGAIN, ALLOW TSU, UH, TO, TO HOUSE THEIR AIRCRAFT IN THERE, KEEP THEM SAFE, UH, AND THEN IT'S GOT SOME CLASSROOM SPACE FOR THEM, UH, IN THERE. NEXT SLIDE, PLEASE. UM, ON THE SPACE PORT, AGAIN, WE CONTINUE TO WORK. UM, NUMBER ONE, WE'RE WORKING WITH THE EXISTING TENANTS THERE, UM, TO BE ABLE TO MEET THEIR FUTURE EXPANSION NEEDS. SO THEY ARE ANTICIPATING THAT THEY'RE GONNA GROW, AND SO WE'RE WORKING ON WAYS FOR THEM TO GROW. UH, AND THEN WE ALSO CONTINUE TO GO FISHING, UH, IN THE MARKET AND SEE IF WE CAN LAND SOME MORE BIG FISH. UM, SO AGAIN, UH, GOOD THINGS THERE. BUT WE ALSO, UH, DID, UH, YOU GUYS PASSED IT TODAY, SOME FUNDING FOR THE TAXIWAY LIMA, UM, THAT IS GONNA ALLOW US TO CONNECT THE AIRFIELD TO THE SPACEPORT. AND SO THAT'S GONNA ALLOW US TO ATTRACT BUSINESS BECAUSE NOW THE, SOME OF THE SPACE [00:35:01] PIECES ARE BUILT, UM, AND, AND, AND BUILT OTHER PLACES AND BROUGHT HERE TO BE MODIFIED. AND SO THIS ALLOWS THE AIRCRAFT TO BE ABLE TO PULL INTO THE SPACE PORT AND, AND LET THE CAR GO OUT, LET IT GET FIXED UP, AND THEN WE HAVE THE ABILITY TO SEND IT BACK. NEXT SLIDE, PLEASE. SO LET'S TALK A LITTLE BIT ABOUT TRANSPORTATION OF THE FUTURE. NEXT SLIDE. SO I'M GONNA USE A COUPLE ACRONYMS HERE. SO IF WE THINK ABOUT ADVANCED AIR MOBILITY, THAT'S KIND OF A CATCHALL TERM THAT'S USED FOR EBIT, OLS, AND THEN DRONES THAT ARE DELIVERING, UM, ICE CREAM OR WHATEVER ELSE THEY'RE DELIVERING DRUGS, WHATEVER THEY'RE DELIVERING IN THOSE CARGO DRONES. UH, BUT THEN ALSO THE PASSENGER ONES WITH THE EALS. SO ON THE LEFT YOU'LL SEE THAT'S A PICTURE OF WHISKS AIRCRAFT. UM, SO THAT'S ONE OF THE MANUFACTURERS. AND ON THE RIGHT IS THE ARCHER, UH, PRODUCT. AND THAT'S AGAIN, UH, A, A, THE, UM, UNITED AIRLINES HAS A PARTNERSHIP WITH ARCHER TO BE ABLE TO PURCHASE SOME OF THESE VEHICLES. NEXT SLIDE PLEASE. SO TO GIVE YOU THE, THE KIND OF DETAILS ON THE PASSENGER SIDE OF THE HOUSE, THEY'RE CALLING THEM EV TALL. SO THAT STANDS FOR ELECTRIC VERTICAL TAKEOFF AND LANDING. UM, IN GENERAL, THESE THINGS ARE THE SIZE OF A, LIKE A, A, A, A FANCY HELICOPTER THAT YOU WOULD SEE OUT THERE. UM, THEY GOT ABOUT A FOOT 50 FOOT WINGSPAN. UM, THEY ARE RANGED ABOUT 50 TO 150 MILES. UH, CRUISE SPEED IS SOMEWHERE BETWEEN 102 HUNDRED. UM, THEY ARE SIGNIFICANTLY, UH, LESS NOISY THAN A HELICOPTER. UM, YOU KNOW, AGAIN, I HAVEN'T HEARD ONE PERSONALLY, BUT AGAIN, SOME OF THE DATA IS 30 TO 90% QUIETER. UH, AND AGAIN, THEY'RE GENERALLY GONNA FIT FOUR TO NINE PASSENGERS, UM, WITH A PILOT. UM, THE ARCHER ONES WILL BE PILOTED. WHISK IS WORKING ON AN AUTONOMOUS ONE, SO YOU WOULD NOT HAVE A PILOT IN THERE. IT WOULD BE CONTROLLED FROM THE GROUND STATION WHERE THE PILOT WOULD BE DOWN IN THE GROUND STATION WORKING IT. NEXT SLIDE, PLEASE. UM, THIS IS A ROUTE THAT WHISK IS PROPOSING FOR THE HOUSTON MARKET TO KIND OF START. UM, SO AGAIN, YOU WOULD SEE A LOT OF THIS TRAFFIC IS GONNA BE ULTIMATELY AIRPORT TO AIRPORT. UM, SO WE ANTICIPATE A RETURN OF THE OLD ELLINGTON ROUTE THAT USED TO FLY A UNITED OR CONTINENTAL USED TO FLY A REGIONAL JET FROM ELLINGTON UP TO BUSH. UM, WE THINK THAT THAT ROUTE WILL RETURN WITH THE EAL, UH, FROM A HOBBY PERSPECTIVE, AGAIN, HOBBY TO BUSH OR HOBBY TO OTHER PLACES. AND WE'VE ALSO GOT, UM, WORKING WITH, UM, SUGAR LAND, UM, AIRPORT. UM, THEY HAVE A LOT OF, UH, YOU KNOW, FUTURE DEMAND WE ANTICIPATE FROM SUGAR LAND TO BUSH. AND THEN SOME, YOU KNOW, AGAIN, WHISK IS PROPOSING SOME PLACE IN THE ENERGY CORRIDOR AND IN DOWNTOWN HOUSTON TO BE ABLE TO, TO LAUNCH THOSE. WE DID SOME BACK OF THE MATH CALCULATIONS ON THIS. AGAIN, THIS IS SUPPOSED TO BE, UM, UBER BLACK STYLE PRICING. SO THAT'S PROBABLY GONNA BE IN THE 200 TO $250 RANGE PER TRIP. AND IF WE TAKE A LOOK AT THE RIDE SHARES THAT WE HAVE AT BUSH ON A REGULAR BASIS, IT'S ABOUT 2 MILLION. AND SO IF WE FIGURE ABOUT 1%, WE CONVERT THESE, UM, THAT'S GONNA GET YOU TO ABOUT 55 EV 12 FLIGHTS A DAY AT BUSH. UM, BUT WE, YOU KNOW, THAT'S GONNA DEPEND ON ADOPTION ON THAT. THIS FALL, WE ARE ACTUALLY GONNA BE SIMULATING THAT, UM, TRAFFIC, UH, WITH OUR, ONE OF OUR CONTRACTORS. THEY HAVE A AIRSPACE MODELING SOFTWARE SYSTEM. AND SO WHAT WE, WHAT WE, YOU KNOW, WE'VE KIND OF GOT A IDEA OF WHERE WE WANNA PUT THIS AT ELLINGTON, BUT WE'VE GOT SOME FLEXIBILITY FROM A HOBBY PERSPECTIVE. WE ANTICIPATE THAT THESE WILL OPERATE AT THE EXISTING FBOS WHERE THE BUSINESS JETS AND THE HELICOPTERS CURRENTLY OPERATE. SO IT'S NOT GONNA BE MUCH DIFFERENCE FOR THAT. UH, AT BUSH THOUGH, UM, THE DESIRE IS TO TRY AND BRING, BRING IT AS CLOSE TO THE TERMINALS AS POSSIBLE, UH, FROM A CUSTOMER EXPERIENCE PERSPECTIVE. BUT WE, UH, OUR GOAL IS TO DO NO HARM, RIGHT? AND SO WE'VE GOT ALL THE AIR TRAFFIC THAT EXISTS THERE TODAY, AND SO WE'VE GOTTA FIGURE OUT HOW WE THREAD THESE INTO THE EXISTING ARRIVAL STREAMS. SO WE'LL BE WORKING WITH THIS AIRSPACE MODELING SOFTWARE, THE MANUFACTURERS, AND THE FAA TO FIGURE OUT THE EXACT LOCATION ON BUSH THAT MAKES SENSE, UM, FOR US TO PUT THESE. UM, SO WE'VE GOT LIKE FIVE SPOTS THAT WE'RE, UH, THAT WE'VE IDENTIFIED RIGHT NOW, AND WE'LL RUN IT THROUGH THE MODEL AND SEE IF THEY WORK OR IF THEY DON'T WORK, UM, TO BE ABLE TO, TO DO A PROPER, UH, SETUP AT AT IAH. NEXT SLIDE, PLEASE. UH, ANOTHER THING I WANNA WANNA MAKE SURE YOU'RE AWARE OF, UH, AND AGAIN, FOR YOUR CONSTITUENTS IN, IN THOSE IS THAT WE DO HAVE AN INDUSTRY DAY COMING UP. SO IT'S AGAIN, JUNE 9TH, UH, BETWEEN ONE AND FOUR AT THE HUMBLE, UH, CIVIC CENTER. AND SO IT'S OUR KIND OF, UH, WHERE WE PITCH, UH, WHAT WE'RE GONNA BE, YOU KNOW, KIND OF COMING OUT WITH FROM A BID PERSPECTIVE IN THE NEXT COUPLE YEARS. UM, IT ALSO IS ALLOWS, UH, AGAIN, IT'S RUN BY OUR ORGANIZATION, UM, SO IT'S A REALLY GOOD SPOT FROM A NETWORKING PERSPECTIVE FOR PRIMES AND SUBS TO MEET EACH OTHER, AND THEN ALSO FOR OUR MINORITY CONTRACTING VENDORS TO BE ABLE TO GO THERE AND MEET SOME OF THE OTHER VENDORS. UM, IT ALSO GIVES US, AGAIN, THE ABILITY TO SHOW PROJECTS THAT ARE COMING AND THEN HAVE SOME, UH, YOU KNOW, KIND OF QUESTION AND ANSWER SESSION WITH A LOT OF THE, UH, VENDORS THERE SO THAT THEY CAN SEE AND GET THEMSELVES READY TO BID ON WHATEVER'S GONNA BE COMING OUT FOR US. AND THEN NEXT SLIDE PLEASE. THAT'S CONCLUDES MY PRESENTATION, SO I'M MORE THAN [00:40:01] READY TO TAKE ANY COMMENTS OR QUESTIONS WE HAD, UH, COUNCILMAN DAVIS JOIN US IN THE CHAMBERS, AND THEN ALSO STAFF FROM COUNCILWOMAN THOMAS JOIN US AS WELL. UM, COUNCILMAN ALCORN, THANK YOU CHAIR, AND THANK YOU DIRECTOR. GREAT PRESENTATION. I FEEL LIKE I'M REALLY UP TO SPEED ON WHAT'S GOING ON AT THE AIRPORT. UM, A LOT OF REALLY GOOD EXCITING THINGS AND CONGRATULATIONS ON ALL THE GREAT WORK AND ALL THE IMPROVEMENTS YOU'VE MADE. THANKS FOR INCLUDING THE STUFF ON THE EALS. UM, A LOT OF US I KNOW, UM, COUNCIL MEMBER FLICKINGER, YOU WENT PROBABLY TO THE WHISK DEMONSTRATION LAST WEEK AT THE EXPONENTIAL THING. THEY ARE, THAT'S, IT'S JUST SO EXCITING WHAT'S COMING. SO I APPRECIATE YOUR INCLUDING THAT YOU SAID IN THE FALL, IS THAT, IS THAT THE TABLETOP EXERCISES THEY WERE TALKING TO ME ABOUT IT, IT, IT, IT'S, IT'LL BE PART OF IT. OKAY. UM, SO THE TABLETOP IS, IS IS, YOU KNOW, WHERE WE MIGHT GET THE DETAILS OF WHAT TO PUT IN THE MODEL, RIGHT? SO WE'LL, WE'LL MEET WITH THE MANUFACTURERS AND THEY GIVE US KIND OF DETAILS ON THEIR OPERATING PHILOSOPHIES AND THEIR EQUIPMENT. AND THEN FROM THERE WE CAN RUN AND PUT THAT IN THE MODEL TO SEE WHERE'S BEST FOR US TO, AND IS IT JOBY AND ARCHER AND WHISK, ARE THOSE THE MAIN PLAYERS? THOSE ARE THE MAIN ONES THAT WE'RE, WE'RE DEALING WITH, YES. OKAY. AND THAT, AND SO IT WOULD BE LIKE OPEN TO EVERYBODY THAT WANTS TO COME THERE. YES. AND IT WOULD HAVE JUST KIND OF ONE WHEREVER YOU CAN FIND THE, THE LAND OR WHEREVER TO, TO HAVE THE LANDING OPERATION AND I GUESS WHERE, WHERE CUSTOMERS COULD COME AND PARK AND GET ON AND ALL THAT KIND OF STUFF. JUST AS A MATTER OF FINDING THE SPACE AND ALL OF THAT. CORRECT. YEAH. AND IS THIS KIND OF UNDER THE PURVIEW OF THE SPACE PORT OR WHO'S KIND OF RUNNING THE SHOW? ON THE E ON TALK. SO THIS IS GONNA BE RUN AGAIN BY THE AIRPORT SYSTEM, PARTICULARLY OUR PLANNING DEPARTMENT. OKAY. PLANNING. UM, AND SO THE PLANNING DEPARTMENT AND THEN OUR OPERATIONS DEPARTMENT TOO. UM, SO THOSE TWO ARE GONNA HAVE WORK HAND IN HAND TO MAKE SURE THAT WHAT THE PLANNER'S PLAN OPERATIONALLY WORKS. I KNOW THAT THE WS PEOPLE WERE SAYING HOPEFULLY BY THE END OF THE DECADE, AND I KNOW AT THE BUDGET WORKSHOP YOU TALKED ABOUT SOME MIGHT BE AT LEAST DEMONSTRATING SOMETHING BY WORLD CUP. SO, UM, I GUESS THE OTHER COMPANIES ARE MOVING, GETTING HERE FASTER OR WHAT, WHAT YEAH, SO WHISK IS A LITTLE BIT BEHIND THEM AND THAT'S BECAUSE THEY'RE TRYING TO GO AUTONOMOUS. AUTONOMOUS, YEAH. SO THAT TAKES A LITTLE BIT LONGER TO, TO, YOU KNOW, KIND OF WORK THROUGH THE FAA CERTIFICATION PROCESS ON THAT. RIGHT, RIGHT. BUT YOU'RE STILL HOPEFUL THAT THE, THERE'LL BE SOME FLYING MAYBE NEXT YEAR? YEAH, I MEAN, AGAIN, IT, IF YOU LOOK AT THE TRADE PUBLICATIONS ABOUT WHEN THEY THINK THEY'LL BE CERTIFIED, THEY'RE, THEY'RE KIND OF AGAIN TRYING TO GET CERTIFIED, YOU KNOW, BEFORE IN, YOU KNOW, IN 2026 AT SOME POINT, SO. RIGHT. OKAY. IF THEY, OKAY, WELL THANK YOU FOR THAT. I'D HAVE TO RUN TO BE ON A PANEL OR I'D BE HERE AND ASKING YOU A BUNCH MORE, BUT, BUT THANK YOU VERY MUCH AND GREAT PRESENTATION. AND I LOVE THE AIRPORTS. IT'S I AND OH, THE FIRST SLIDE WAS THAT 19.5 MILLION AT BOTH AIRPORTS? UH, YES, BOTH AIRPORTS. OKAY. THANKS. COUNCILMAN DAVIS. THANK YOU BROTHER CHAIR. GOOD TO SEE YOU, JIM. THANK YOU FOR YOUR PRESENTATION. VERY WELL DONE. JUST A FEW QUESTIONS I WANTED TO ASK. NUMBER ONE, UM, WITH NOW WITH THE EXPANSION, HAS THERE BEEN A, UH, YOU KNOW, A ROBUST HIRE OF NEW, UM, YOU KNOW, IN TERMS OF ADDING NEW HIRES TO THE AIRPORT DUE TO THE EXPANSION AT BOTH AIRPORTS? YEAH, SO IF YOU LOOK AT THE AIRPORTS THEMSELVES, WE JUST RECENTLY DID OUR ECONOMIC IMPACT STATEMENT. AND SO WE ARE UP OVER 200,000 EMPLOYEES THAT THE AIRPORT KIND OF IS IMPACTFUL ON. UM, AND THAT, THAT NUMBER SHOULD GROW. UH, AND THAT IS A SIGNIFICANT INCREASE OVER OUR PREVIOUS, YOU KNOW, IMPACT STATEMENT THAT WAS DONE ABOUT FIVE YEARS AGO. UH, IF WE LOOK AT UNITED AIRLINES, UNITED AIRLINES HAS SIGNIFICANT, IS SIGNIFICANTLY HIRING, UM, MORE FOLKS IN THE, IN THE HOUSTON REGION, AND THEN THEY'RE ACTUALLY BRINGING A LOT OF, UH, BUSINESS TO, TO BUSH, UM, NOT JUST, YOU KNOW, THE TRADITIONAL PASSENGER STUFF. THEY ARE BUILDING A NEW FLIGHT KITCHEN ON THE NORTH SIDE OF THE AIRFIELD. UM, AND THEN ALSO THEY'RE MOVING SOME OF THEIR MAINTENANCE OPERATIONS TO BUSH. UM, AND THEY'RE BUILDING A BRAND NEW, UH, A HUNDRED MILLION DOLLARS GROUND SERVICE EQUIPMENT FACILITY AT BUSH TOO. SO THEY'RE NOT ONLY ARE THEY BUILDING A LOT OF INFRASTRUCTURE TO MOVE THE PASSENGERS, BUT ALSO ALL THE SUPPORT STUFF BEHIND IT. SO YEAH, WE ARE SEEING A SIGNIFICANT INCREASE IN, UM, YOU KNOW, AGAIN, THE, THE, AS AS THE FLIGHTS GROW, THE, THE AMOUNT OF PASSENGERS GROW GROW, AND AS SO DOES THE AMOUNT OF, UH, SO WE CAN EXPECT THAT TO, TO BE GOING FORWARD. CORRECT. YES. SECONDLY, UM, WHAT, IN TERMS OF REPAIRS, I KNOW THE CONSTRUCTION COMPANIES THAT WE HAD TO DO ALL OF THE WORK AND EXPAND, IS THERE, IS THERE GOING TO BE, UH, ANY REPAIRS TO IT? WOULD THAT BE A SEPARATE CONTRACTED GROUP OR WOULD WE BE WORKING WITH THE ORIGINAL BUILDERS? SO THE, THE, THE, THE KIND OF PEOPLE WHO ARE BUILDING THE TERMINALS THAT'S KIND OF SET AND THEY'RE OFF DOING THEIR THING, UM, WE WILL ANTICIPATE, YOU KNOW, RELEASING A NUMBER OF, OF PACKAGES FOR OUR GENERAL, UM, O AND ME KIND OF, UH, MAINTENANCE. SO EXAMPLES WOULD BE, UH, WE ARE JUST [00:45:01] KICKING OFF, UH, THE RECONSTRUCTION OF TAXIWAY SIERRA AND SIERRA BRAVO AT BUSH. UH, BUT WE, BEHIND THAT, UH, WE ARE NOW ADVERTISING FOR A HOBBY RUNWAY 4, 2 2, AN UPGRADE TO THE RUNWAY THERE. WE'RE GONNA BE DOING SOME, UH, DIAMOND GRINDING AND, AND AND GROOVE REPAIR ON THE RUNWAYS AT BUSH. MM-HMM. WHEN WE'RE DONE WITH SIERRA ALPHA, SIERRA BRAVO, WE DOING ANOTHER SET OF TAXIWAYS AT BUSH. AND THEN IN ABOUT A YEAR AND A HALF TO TWO YEARS FROM NOW, WE'LL BE ACTUALLY RECONSTRUCTING ONE OF THE, THE HOBBY RUNWAYS. OKAY. AND THEN ALSO A TAXIWAY HOBBY. SO WE'VE GOT A SIGN SIGNIFICANT AMOUNT OF, YOU KNOW, KIND OF FLAT WORK GOOD, UH, GOING FORWARD. DOES THAT, DOES THAT INCLUDE THE WORKING WITH OOBO FOR YES. MWBES AND OTHER CORRECT. SBE FOR LOCAL? YES. GOOD DEAL. GOOD DEAL. THAT'S GOOD TO HEAR. LAST LAST THING I WANTED TO ASK. I KNOW LAST TIME WHEN YOU WERE HERE SPEAKING WITH THE BUDGET COMMITTEE, THOSE QUESTIONS, AND REMEMBER I ASKED YOU ABOUT THE, UH, AIR TRAFFIC CONTROLLERS? YES. AND THEN RECENTLY WE HAD HEARD THAT THERE WERE A SHORTAGE. UM, THEY PUT IT OUT ON THE NEWS THAT THERE WAS A SHORTAGE DUE TO THAT TRAFFIC CONTROLLERS. SO HOW ARE WE GOING DOING WITH THAT FORWARD? I KNOW YOU MENTIONED ABOUT YOU HAVE A GOOD TRAINING PROCESS IN PLACE, BUT THAT HOUSTON WAS COVERED, BUT OBVIOUSLY WE WERE SHORT. YEAH, SO, SO HOUSTON IN GENERAL, OUR, OUR, OUR AIRPORT, OUR TRAFFIC CONTROL IS, IS WE, WE DON'T HAVE THE SHORTAGES HERE JUST BECAUSE WE'VE GOT THIS ATTRACTIVE, UM, LIFESTYLE AND LIVING ARRANGEMENTS DOWN HERE. AND SO WE, WE, WE, WE CAN RETAIN OUR CONTROLLERS, UH, HERE, UH, COMPARED TO SOME OF THE OTHER AIRPORTS, UH, AND, AND AREAS OF THE, UH, THE UNITED STATES. SO, UH, BUT IT DOES IMPACT US, RIGHT? BECAUSE OF THE FACT THAT WE DO SEND A LOT OF PEOPLE TO NEW YORK. AND IF YOU GET CAUGHT IN NEW JERSEY IN NEWARK, IT, IT IS A CHALLENGE FOR YOU RIGHT NOW. SO WE, AGAIN, WE ARE VERY SUPPORTIVE OF THE FAA TRYING TO, TO SOLVE THIS CHALLENGE 'CAUSE IT IS, IS IMPORTANT FOR US ALL. SO IT, ALTHOUGH IT MIGHT NOT BE AS LOCALLY IMPACTFUL IN HOUSTON, IT DOES HAVE AN IMPACT ON US. 'CAUSE AGAIN, WE WE'RE, WE'RE SENDING PEOPLE THROUGHOUT THE COUNTRY. OKAY. GOOD. THANK YOU. COUNCILMAN MARTINEZ. THANK YOU CHAIR, UH, DIRECTOR. JUST WANNA SAY GREAT PRESENTATION AND I'M EXCITED ABOUT THE 2025 INDUSTRY DAY. UM, WHAT'S BEEN THE FEEDBACK SO FAR FROM REGISTRATION? UH, AGAIN, IT'S, IT'S REALLY GOOD. I MEAN, I THINK WE'LL, WE'LL PROBABLY HAVE OVER 500. OKAY. UM, SO YEAH, WE'LL CONTINUE TO PROMOTE IT AS WELL. AND WE JUST WANNA MAKE SURE THAT, YOU KNOW, Y'ALL CAN HAVE AS MUCH, UH, PARTICIPATION. SO, BUT JUST WANNA SAY THANK YOU FOR, FOR HOSTING THAT AGAIN AND YEP. UH, LOOK FORWARD TO GETTING SOME FEEDBACK AS WELL FROM SOME OF THE FOLKS OUT THERE. ALRIGHT. AWESOME. COUNCILMAN RAMIREZ'S OFFICE. THANK YOU CHAIR. I APPRECIATE THE PRESENTATION. I WAS JUST CURIOUS WITH REGARD TO THE ECONOMIC MODELING THAT YOU DO, UH, THE CORRELATION OF, OF AIRPORT REVENUE TO, UM, ECONOMIC GROWTH OR, OR, UH, RECESSION BOTH LOCALLY AND IN THE US I JUST WONDERED IF YOU HAD, UM, A SENSE OF THAT. SO, SO IT, IT'S, IT'S IN THE DATA. I I, I CAN PUT MY LIKE ECONOMIC NERD HAT ON, UH, IF I NEED TO GET INTO IT. BUT IN GENERAL, YES, THE, THE, THE AIR THE AIRLINE INDUSTRY IN GENERAL DOES FOLLOW THE PATTERNS THAT YOU'VE GOT. UM, IN THE, IN THE MACRO ECONOMY. THE THING THAT CHANGES A LITTLE BIT NOW IS, IS THAT, UM, IF YOU, IF YOU THINK ABOUT, LET'S JUST CALL IT 10, 15 YEARS AGO, IF YOU, IF YOU, IF THERE IS A RECESSION OR IF THERE IS A, YOU KNOW, A REDUCTION, THERE'S THE 10 THINGS YOU COULD SAVE MONEY ON AND, AND GOING ON A TRIP MIGHT'VE BEEN, YOU KNOW, IT MIGHT'VE BEEN THE, LIKE, YOU KNOW, ON THE LIST IT MIGHT'VE BEEN LIKE, ALRIGHT, WE'RE GONNA STOP TRAVELING. UH, THAT WAS KIND OF THE TOP OF THE LIST THAT'S NOW TOWARDS THE BOTTOM OF THE LIST. UM, SO WE'RE SEEING ALL, IT'S A LOT MORE RESILIENT THAT EVEN THOUGH THINGS START TO GET A LITTLE TIGHT AROUND HERE, PEOPLE STILL WANT TO GO ON THEIR TRIPS. UM, SO WE, WE, YOU KNOW, SO IT'S A LITTLE, YOU GOTTA WATCH THAT STUFF. UM, AND SO AGAIN, IT'S A GOOD WAY TO WATCH IT TOO, IS, IS IF YOU, WE LISTEN TO THE AIRLINES, UH, QUARTERLY, UM, EARNINGS CALLS. SO IT'S A GOOD PLACE TO GET TIPS ON WHAT WE AND THE AIRLINES ANTICIPATE COMING FORWARD FROM AN ECONOMY PERSPECTIVE. THE OTHER THING THAT WE ALWAYS LOOK AT TOO, FROM A HOUSTON PERSPECTIVE IS, IS THAT, YOU KNOW, AGAIN, BECAUSE OF THE FACT THAT WE HAVE A VERY STRONG SOUTHWEST PRESENCE, UM, AT HOBBY AND A VERY STRONG UNITED PRESENCE AT BUSH, WHAT THOSE HUB CARRIERS ARE DOING, AND THEN ALSO WHERE WE COMPARE TO THEIR OTHER, OTHER HUBS. AND SO IF YOU DO KIND OF GET THAT DOWNTURN, UH, EXAMPLE WOULD BE IS, IS THAT THE COST PER EMPLOYMENT HERE AT IAH IS, LET'S JUST CALL IT ROUGHLY AROUND 1130, UM, UP IN CHICAGO, IT'S, IT'S AROUND $30. SO IT'S MUCH CHEAPER TO FLOW PEOPLE THROUGH IAH THAN IT IS TO POTENTIALLY THROW 'EM THROUGH O'HARE. SO WHEN PUSH COMES TO SHOVE, IF THE ECONOMY IS KIND OF, UH, WEAKENING, THEN THAT'S ONE OF THOSE THINGS. HAVING THIS GOOD COST STRUCTURE DOWN HERE AT, AT, AT OUR TWO AIRPORTS HELPS US MAINTAIN, UH, A LOT OF THE TRAFFIC BECAUSE OF THE FACT THAT, UM, YOU KNOW, AGAIN, WE'RE NOT AS EXPENSIVE AS SOME OF THE OTHER AIRPORTS. GREAT. THANK YOU. [00:50:01] FOLLOWING UP ON COUNCILMAN DAVIS' QUESTION, DOES HAS HAVE A LOT OF INVOLVEMENT OR CONTROL OVER THE AIR TRAFFIC CONTROLLERS? IS THAT MORE OF AN FAA, UH, NO. UM, WE, WE, THAT, THAT'S PURELY AN FAA THING. OKAY. UM, OUR SUPPORT TO THE AIR TRAFFIC CONTROLLERS IS JUST, YOU KNOW, KIND OF OUR, OUR COORDINATION WITH THEM ABOUT CLOSING RUNWAYS AND TAXIWAYS WHEN WE DO REPAIRS AND THOSE KIND OF THINGS. AND THEN HELPING THEM OUT IF THEY EVER HAVE CHALLENGES OR, OR TROUBLES THE BEST THAT WE CAN. UM, SO AGAIN, WE HAD A, A POWER OUTAGE AT THE HOU HOBBY TOWER THE OTHER DAY, UH, GENERATORS KICKED ON AND, AND, YOU KNOW, FROM A TRAVELER'S PERSPECTIVE, THEY DIDN'T NOTICE ANY DIFFERENCE. BUT, YOU KNOW, WE SENT OUR ELECTRICIANS OVER THERE JUST TO HELP THEM IF THEY NEEDED ANY HELP, THOSE KIND OF THINGS. OKAY. AND ON THE EV TOS, UM, I BELIEVE YOU TOLD ME YOU'D GONE AND LOOKED AT LA AND, AND SAW WHAT THEY WERE DOING. CAN YOU KIND OF GIVE US A LITTLE FEEDBACK ON THAT? SO WE, WHAT WE DID, WE DIDN'T SEE LA WHAT WE DID IS WE WENT TO THE TECH CENTER, UH, THE FA A'S TECH CENTER, WHICH IS OUT IN NEW JERSEY. AND, AND IN NEW JERSEY, THEY BUILT A FAKE LOS ANGELES AIRPORT, AND THEY HAD CONTROLLERS, UH, CONTROLLING THE, THE AIRSPACE, UH, WITH FAKE, THEY'RE NOT FAKE PILOTS. THEY'RE, THEY'RE ACTUALLY LIKE A ROOM FULL OF PILOTS AND THEY KIND OF, YOU KNOW, DO ALL THE, THE, THE THINGS THAT PILOTS DO WITH THE LITTLE AIRCRAFT AND THE CONTROLLERS DID THEIR, THEIR OPERATION THERE. AND SO WE COULD SEE, YOU KNOW, WHAT WAS GOING ON FROM AN LA PERSPECTIVE, AND THEY WOULD PUT THE EV TALL LANDING SPOTS, YOU KNOW, UH, THEY PUT IT HERE ONE DAY AND THEY WOULD PUT IT AT ANOTHER PLACE ANOTHER DAY AND ANOTHER PLACE ANOTHER DAY. AND THEN WE, THE CONTROLLERS WOULD BE ABLE TO EXPERIENCE WHETHER THIS WAS A CHALLENGE OR NOT A CHALLENGE, DEPENDING ON WHERE THEY WERE GONNA PUT THAT IN THERE. AND SO AGAIN, THAT'S WHAT WE ANTICIPATE. WE'LL DO SOMETHING SIMILAR WITH THAT, UH, MODELING THAT WE'RE GONNA DO IN THE FALL WHERE WE WOULD BE ABLE TO, YOU KNOW, PLUG IN A COUPLE DIFFERENT LOCATIONS ON THE AIRPORT AND SAY, OKAY, WHICH ONE WORKS BEST? OKAY. AND HOW DOES THAT FIT INTO SPACEPORT? I MEAN, I CAN SEE THERE BEING A NEED FOR MORE OF THE EV TOLLS GOING INTO THE SPACEPORT. YEAH. SO, SO AGAIN, HAVING THAT EV TO OPERATION AT ELLINGTON, UM, DOES ALLOW SPACEPORT BUSINESSES EASY CONNECTIONS GLOBALLY, RIGHT? SO THE SPACE IN SPACE INDUSTRY IS A GLOBAL INDUSTRY. AND SO IF, YOU KNOW, AGAIN, IF WE TALK, TALK ABOUT SOME OF THE, UM, SPACE COMPANIES THAT WE'RE TRYING TO ATTRACT, THEY MAY HAVE FACILITIES IN, IN EUROPE. AND SO BEING ABLE TO JUMP ON THE EVAL, FLY RIGHT TO BUSH AND JUMP ON THE PLANE AND GO TO EUROPE, BACK TO THE HEADQUARTERS, UM, THAT'S AN ATTRACTIVE, UH, DESTINATION AND A SERVICE THAT WE OFFER THAT OUR COMPETING SPACE SPORTS CAN'T. SO IF YOU'RE, YOU KNOW, IN THE MIDDLE OF A DESERT SOMEWHERE, UM, THAT DOESN'T BODE WELL TO BE ABLE TO, YOU KNOW, KIND OF GET ANYWHERE QUICKLY. UM, NOT ONLY THE CHALLENGES OF LIVING IN THE MIDDLE OF THE DESERT, BUT THEN YOU'VE GOT THE WHOLE, WELL, I NEED TO GO BACK TO THE, THE HOME OFFICE AND IT'S LIKE, IT TAKES FOREVER AND A DAY. WHERE HERE AT BUSH YOU COULD BASICALLY GO EVIE TALL TO BUSH, JUMP ON THE PLANE, AND YOU'D BE BACK IN EUROPE IN ABOUT 10 TO 12 HOURS. SO, OKAY. THANK YOU. ANY MORE QUESTIONS? I GUESS THAT LOOKS LIKE THAT'S IT AND WE DON'T HAVE ANY PUBLIC SPEAKERS, SO WE'LL GO AHEAD AND, UH, ADJOURN THE MEETING BEFORE WE DO, UH, THE NEXT SCHEDULED ECONOMIC DEVELOPMENT ECONOMIC COMMITTEE MEETING IS WEDNESDAY, JUNE 18TH AT 2:00 PM AND, UH, WE MAY BE CHANGING THAT DUE TO THE JUNETEENTH HOLIDAY, BUT OTHER THAN THAT, WE'RE GOOD. ALSO, IF YOU'RE INTERESTED IN RECEIVING INFORMATION ON THE ECONOMIC DEVELOPMENT COMMITTEE MEETINGS, PLEASE CONTACT THE DISTRICT K OFFICE AT DISTRICT K@HOUSTONTX.GOV. AND, UH, ONCE AGAIN, DIRECTOR, THANK YOU VERY MUCH. GREAT PRESENTATION. UH, YOU GOT A LOT OF GOOD THINGS GOING ON AT THE AIRPORT AND REALLY APPRECIATE EVERYTHING YOU DO. ALL RIGHT. WELL, AGAIN, WE APPRECIATE THE SUPPORT YOU GIVE US. UM, JUST THE FACT THAT I CAN'T DO IT WITHOUT THE, THE MONEY YOU GUYS GIVE US TO GET THESE THINGS DONE. APPRECIATE. THANK YOU, MAN, SIR. ALRIGHT, THANKS. BYE. . * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.