City to complete up to $850 million tranche of Terminal B special facility bonds for United Airlines

The finance director briefed the committee on the remaining issuance under the memorandum of agreement with United Airlines for Terminal B.

Melissa Dubeowski said this piece of the financing represents the remaining "$850,000,000 representing the last piece of the borrowing under this MOA with United." She emphasized that these "special facility revenue bonds are not supported by the general fund" and that the pledge for repayment comes from United's special facilities lease payments. Staff said the anticipated true interest cost for the issuance is between "5.8 to 6, 6.2%." Council was told further council actions will be required in October and November to clear lease and financing terms, with pricing in November and closing in November.