OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Economic Development Committee Meeting - January 22, 2026

Committees and CommissionsThursday, January 22, 2026
BodyHouston, Texas
SessionCommittees and Commissions
DateThursday, January 22, 2026
StatusFILED
Video Record
0:00 / 1:02:46

Transcript — Verbatim
0:11

I do want to welcome my colleagues and staff and guests in attendance.

0:16

Councilmember Castillo is here, Councilmember Alcorn is here, Councilmember Ramirez is here.

0:22

We also have staff from Vice Mayor Pro Tim Peck's office from Councilmember Cayman's office, from Councilmember Martinez's office, and also Councilmember Flickinger's office.

0:34

Thank you all for being here.

0:36

This meeting is open to the public and is being held in person and virtually.

0:40

We're also broadcasting live on Houston HTV.

0:45

Council members and staff, if you'll just hold your questions if you're online and you want to put those questions in the chat pod, you can do that.

0:54

We do have one member of the public who is signed up to speak today.

0:59

If you are here and you'd like to sign up to speak, there is a sign-up sheet at the front table to your right.

1:06

Public speakers will have a chance to speak at the conclusion of our presentation.

1:11

Any questions that may not be answered today can definitely be emailed to our office at District K at Houston TX.gov and we can forward those responses back from the respective departments.

1:26

Also want to uh welcome staff from Councilmember Jackson's office to the meeting today.

1:32

Thank you for being here.

1:33

We do have two presentations today.

1:35

Our first presentation will be from our Houston Airport System Director, Jim Cesniak, and he will be presenting on the Houston Airport system, giving us some um great updates.

1:49

We're very hopeful that the weather won't cause any problems for us uh this weekend.

1:54

So uh director Cesniak, thank you for being here.

1:58

If you are ready, we are ready to hear from you.

2:01

Councilmember Thomas's staff is online.

2:04

Also want to recommend recognize staff from Councilmember Thomas's office who has joined us online.

2:14

Hello, Director.

2:15

How are you doing?

2:16

It's great to be here today.

2:17

Um, you know, it's been a while since I've been here, so I figured it'd be a good time to come in and do a presentation, let you know what's going on at the airport, what we're doing, um, and then also uh we've got a couple of items that are gonna be coming before you in the near future, and so we want to kind of give you an update on what that entails so you can ask questions because they're they're uh big dollar amounts.

2:34

So uh next slide, please.

2:36

Um and then you know, just generally what we've been doing at the airport um from a passenger um experience side of the house so we can see what's going on.

2:43

Next slide, please.

2:45

Um next slide.

2:46

So uh again, good growth this year, particularly uh international.

2:50

Um so we just got our numbers in and completed for the calendar year of 2025.

2:55

Um international growth was up, um, which was very positive considering we just opened the new international terminal.

3:01

Um and then also our air cargo numbers were up and very strong, so we're very excited about that because again it's a little little known part of the the the airport, but it's about 13 billion dollars in annual economic impact to the to the region for the cargo operation that happens at the airport.

3:15

On the domestic side, we were down a little bit.

3:17

Um that had to do uh with a couple of factors.

3:20

So uh number one, uh about this time last year we were closed for a day because of the snowstorm.

3:26

Um so that has an impact on our numbers.

3:28

And then we've seen some fluctuations in the domestic market.

3:30

We've got some airlines that are up and some airlines that are down.

3:33

Um so again, you know, United and Frontier at the airports have been up pretty good, and then uh Spirit Airlines with their bankruptcy challenges has been down at the airport.

3:42

Um, and then Southwest, you know, system-wide has been doing some reorganization of their system, and so they were down a little bit.

3:48

But that was a universal thing across their network, they've been down, and then they've got a challenge with their aircraft right now.

3:53

They're uh waiting for Boeing to get their uh 737 7 maxes certified.

3:58

So we're hearing that that that will hopefully happen sometime this year and allow Southwest to continue to grow um as they continue to get airplanes uh and into their fleet again.

4:08

Next slide, please.

4:11

Um again, just talking about that international growth.

4:13

Um, you know, again, we saw a lot.

4:15

Uh you'll see the boat it bolded uh destinations.

4:18

Those are a lot of new destinations or additional competition on routes, so we're always you know trying to make sure that we grow the pie um number one, but then also having a competitive market here.

4:28

Um so we're very proud of some of these new destinations that we had.

4:31

Um and then we're gonna continue to add you know domestic destinations too.

4:35

I was just informed today about another international um two more international flights that we're gonna get, but I can't announce them yet, so you'll you'll have to follow our Twitter.

4:43

It'll be it'll be on there in a couple days once it's uh public with the airline.

4:47

Next slide, please.

4:50

Uh again, talking about that cargo and how important it is to the region.

5:00

Um you saw that we're again record setting over here, saw a lot of new growth with uh again the semiconductors, particularly that are coming in uh to the market because of again what's happening here in Houston, but also you know, we find feed things that are happening in the Austin region, um, and then also feeding things that are happening in the San Antonio region.

5:12

So a lot of good stuff going on in there, and then we've got obviously the significant operations by FedEx, UPS, and Prime Air, which is the Amazon Air wing.

5:22

So all the the things you order on Amazon, and a lot of it flies in and out of the airport too.

5:27

So uh being seeing strong numbers there, and again, um just recently announced that we got a second frequency from Silkway Airways, they're going direct uh from here to uh Baku, Azerbaijan.

5:38

Um so uh it's one of those unique locations that not people ought to think about, but uh that's uh you know primarily the oil business.

5:44

So we send a lot of the stuff that's produced here in Houston from an oil perspective over on that airplane uh to get into the markets over there where they're doing a lot of oil production.

Discussion Breakdown — Share of Meeting
Public Transit█████████████████████████████████████████████61%
Public Safety███████9%
Economic Development███████9%
Procedural██████8%
Public Works█████7%
Aviation██3%
Veteran Affairs██3%
Summary of Proceedings

Economic Development Committee Meeting - January 22, 2026

The Economic Development Committee of the Houston City Council met on January 22, 2026, at 1:00 PM (presumed) to receive updates from the Houston Airport System and to consider a Texas Enterprise Zone nomination for NRG Energy. The meeting was chaired by the Mayor Pro Tem and included council members and staff from multiple offices. One member of the public provided comments.

Public Comments & Testimony

  • Carla West spoke to ask about the implications for NRG Energy if the Texas Enterprise Zone nomination is not approved. She expressed concern about how the company would fund its project without the incentive.

Discussion Items

  • Presentation by Jim Cesniak, Director of the Houston Airport System

    • Passenger and Cargo Statistics (2025): International passenger growth was up, domestic traffic was down slightly (due to snowstorm closure, Spirit Airlines bankruptcy, Southwest reorganization). Air cargo set records with $13 billion in annual economic impact. New international destinations were added, and two more international flights are pending announcement.
    • Terminal Improvements: International Terminal (IAH) openings set for late February 2026 in a staged manner, contingent on baggage system testing and TSA approval. Terminal B at IAH is progressing – new concourses and a 50,000 sq ft United Club (world’s largest) expected fall 2026. Hobby Airport improvements include canopies, skylights, new baggage carousels, and restrooms.
    • Runway and Taxiway Maintenance: Runway 8R regrooving completed; 9/27 regrooving planned for spring 2026. Taxiway reconstruction at IAH (Sierra Alpha/Bravo) underway. Hobby safety enhancements completed.
    • Restroom Upgrades: $30 million project for Terminals A and D at IAH, partially FAA-grant funded. New restrooms open in Terminal D; Terminal A under construction (spring 2026). United Airlines began upgrading restrooms in Terminals C and E.
    • Roadway and Parking: Zero severe traffic incidents at Bush IAH in 2025. New intersection at Will Clayton/Kenswick to ease congestion and enable cargo expansion. New ride-share area at Terminal C with doubled capacity. New parking control system with license plate recognition; reservation-only during peak periods. New shuttle fleet with GPS and arrival displays. Rental car bus shelters added.
    • Skyway Modernization: Planned $260+ million capital upgrade, grant-eligible. Will increase capacity by 30% over ~4 years with minimal passenger disruption. Old control system replaced; new trains, platform doors, and expanded fleet. Also upgrading the underground subway, but no timeline yet.
    • Central Utility Plant: Seeking additional appropriations (seed money approved June 2024). Will replace chillers, demolish steam boilers, upgrade cooling towers and electrical gear. Advanced purchase request coming soon; final appropriation expected summer 2026.
    • EVTOL (Electric Vertical Takeoff and Landing): Tabletop exercise with FAA and manufacturers scheduled for spring 2026 for potential sites at IAH and Ellington Field. Hangar acquisition at Ellington ($1.7 million) under consideration for EVTOL use.
    • Metro Bus Service: Express bus to downtown now operates from Terminal E (since Aug/Sep 2025). $4.50 fare. Future extension to Hobby Airport planned. Councilmembers asked about ridership and promotion.
    • Veterans Parking Benefit: Designated access available – up to one week in garage, longer in economy lots.
    • Taxi/Ride-Share Staging: Due to high ride-share volume, the airport will take parking spaces from the taxi staging area to reduce spillover onto Will Clayton Parkway. Agreement reached with Houston Taxi Association.
  • Presentation by Andrew Busker, Senior Staff Analyst, Mayor’s Office of Economic Development

    • Texas Enterprise Zone Nomination for NRG Energy: Proposed nomination for NRG Energy (1301 McKinney Street, downtown). Project involves $37 million in tenant improvements, furniture, IT infrastructure (with $10 million submitted to state for this cycle). Retained jobs: 350 (avg salary $144,000). New jobs: 150 over 5 years (avg salary $117,000) – positions in business/financial, IT, office admin, sales/marketing.
    • Timeline: Nomination resolution expected on February 11, 2026 City Council agenda; state application deadline March 3, 2026.
    • Questions: Councilmember Ramirez asked about the justification for retaining jobs (no “but for” requirement in this program). Project is already underway; incentive would offset costs. Busker offered to provide detailed job classifications. He noted the salary figures on the slide were corrected (retained avg $144k, new avg $117k). Councilmembers expressed interest in receiving more information.

Key Outcomes

  • No formal votes were taken during the meeting.
  • The Airport System will continue to provide updates as projects progress.
  • The NRG Energy TEZ nomination will proceed to the February 11, 2026 City Council meeting for consideration.
  • The next Economic Development Committee meeting is scheduled for March 18, 2026.

Meeting Transcript

I do want to welcome my colleagues and staff and guests in attendance. Councilmember Castillo is here, Councilmember Alcorn is here, Councilmember Ramirez is here. We also have staff from Vice Mayor Pro Tim Peck's office from Councilmember Cayman's office, from Councilmember Martinez's office, and also Councilmember Flickinger's office. Thank you all for being here. This meeting is open to the public and is being held in person and virtually. We're also broadcasting live on Houston HTV. Council members and staff, if you'll just hold your questions if you're online and you want to put those questions in the chat pod, you can do that. We do have one member of the public who is signed up to speak today. If you are here and you'd like to sign up to speak, there is a sign-up sheet at the front table to your right. Public speakers will have a chance to speak at the conclusion of our presentation. Any questions that may not be answered today can definitely be emailed to our office at District K at Houston TX.gov and we can forward those responses back from the respective departments. Also want to uh welcome staff from Councilmember Jackson's office to the meeting today. Thank you for being here. We do have two presentations today. Our first presentation will be from our Houston Airport System Director, Jim Cesniak, and he will be presenting on the Houston Airport system, giving us some um great updates. We're very hopeful that the weather won't cause any problems for us uh this weekend. So uh director Cesniak, thank you for being here. If you are ready, we are ready to hear from you. Councilmember Thomas's staff is online. Also want to recommend recognize staff from Councilmember Thomas's office who has joined us online. Hello, Director. How are you doing? It's great to be here today. Um, you know, it's been a while since I've been here, so I figured it'd be a good time to come in and do a presentation, let you know what's going on at the airport, what we're doing, um, and then also uh we've got a couple of items that are gonna be coming before you in the near future, and so we want to kind of give you an update on what that entails so you can ask questions because they're they're uh big dollar amounts. So uh next slide, please. Um and then you know, just generally what we've been doing at the airport um from a passenger um experience side of the house so we can see what's going on. Next slide, please. Um next slide. So uh again, good growth this year, particularly uh international. Um so we just got our numbers in and completed for the calendar year of 2025. Um international growth was up, um, which was very positive considering we just opened the new international terminal. Um and then also our air cargo numbers were up and very strong, so we're very excited about that because again it's a little little known part of the the the airport, but it's about 13 billion dollars in annual economic impact to the to the region for the cargo operation that happens at the airport. On the domestic side, we were down a little bit. Um that had to do uh with a couple of factors. So uh number one, uh about this time last year we were closed for a day because of the snowstorm. Um so that has an impact on our numbers. And then we've seen some fluctuations in the domestic market. We've got some airlines that are up and some airlines that are down. Um so again, you know, United and Frontier at the airports have been up pretty good, and then uh Spirit Airlines with their bankruptcy challenges has been down at the airport. Um, and then Southwest, you know, system-wide has been doing some reorganization of their system, and so they were down a little bit. But that was a universal thing across their network, they've been down, and then they've got a challenge with their aircraft right now. They're uh waiting for Boeing to get their uh 737 7 maxes certified. So we're hearing that that that will hopefully happen sometime this year and allow Southwest to continue to grow um as they continue to get airplanes uh and into their fleet again. Next slide, please. Um again, just talking about that international growth. Um, you know, again, we saw a lot. Uh you'll see the boat it bolded uh destinations. Those are a lot of new destinations or additional competition on routes, so we're always you know trying to make sure that we grow the pie um number one, but then also having a competitive market here. Um so we're very proud of some of these new destinations that we had. Um and then we're gonna continue to add you know domestic destinations too.

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