SFO seeks $31M federal grant for HVAC upgrades at international terminal

The San Francisco County government meeting on July 4, 2025, focused on several key resolutions, including budget approvals and grant applications aimed at improving local infrastructure and supporting economic equity.

One of the most significant discussions involved the approval of approximately $2.4 million in reserve funds to the Public Utilities Commission (PUC). The committee expressed appreciation for the project's progress, noting that it is nearing completion with a contingency budget that has resulted in savings. The motion to release the funds passed unanimously.

Another major item on the agenda was a resolution authorizing the San Francisco International Airport (SFO) to accept and expend a federal grant of up to $31 million for HVAC improvements at the international terminal. This funding, part of the Federal Aviation Administration's Airport Terminal Program, aims to enhance the airport's infrastructure by replacing critical mechanical components and improving energy efficiency. The total project cost is estimated at $52.5 million, with SFO covering the required 20% matching funds.

The meeting also addressed modifications to existing leases with American Airlines and United Airlines for hangar space. Both leases were extended by two years, with American Airlines' rent increasing to approximately $7.24 million annually, while United Airlines' rent remains unchanged. The estimated total revenue from these leases over the new terms is projected to be around $26 million.

Additionally, the Office of Cannabis presented a resolution to accept a grant of approximately $2 million from the Governor's Office of Business and Economic Development. This funding is intended to support local equity applicants and licensees in the cannabis industry, promoting economic justice for communities affected by cannabis prohibition. The grant will cover various startup and operational costs for eligible businesses.

The meeting concluded with a positive recommendation to forward these resolutions to the full board for approval, highlighting the county's ongoing commitment to infrastructure improvement and economic equity initiatives.