Houston — Houston First officials and Hunden Partners presented the Budget & Fiscal Affairs Committee on Oct. 20 with a market study and fiscal model for the George R. Brown South Building expansion. The consultant projected the South Building alone could drive roughly $20.6 billion in long‑term new spending, generate 337,000 additional group room nights and produce a 30% increase in events held in a stabilized year after construction.

Michael Heckman, CEO of Houston First, described the expansion as a multidecade program to "redefine the eastern edge of downtown" and to bolster Houston's competitiveness for large conventions and events. Hunden Partners EVP Bethany DeRose summarized the market analysis: the expansion adds contiguous event space and would allow Houston to host overlapping, citywide‑scale events that the current footprint limits.

Hunden's analysis projects increases across revenue streams (79% facility rental increase and 93% food & beverage increase in a stabilized year) and estimated total tax collections of about $741 million attributable to the expansion over the modeled horizon. The consultants recommended an attached headquarters hotel of at least 800 rooms to capture the highest‑impact events and said the South Building expansion would reduce "dark days" — calendar gaps when the center is unused — by about two‑thirds.

Council members praised the economic case but pressed Houston First on community concerns raised by East End neighbors and labor groups. People for Polk, Unite Here 23 and other commenters asked the city to postpone any street abandonment or right‑of‑way approvals until appraisals for six affected public rights of way are complete, until JRC (Joint Resolution Committee) appraisal requirements are satisfied, and until detailed mitigation and traffic plans are provided.

Public speakers raised three recurring concerns: (1) sequencing — the city may spend on short‑lived street changes now that TxDOT's Northern Houston Highway Improvement Project (NHHIP) will later rework the same area; (2) lack of a full public budget and finance plan — speakers asked to see the full Hunden report and projected bond or PFC (project finance zone) repayment schedules before council action; and (3) neighborhood impacts — preservation of Polk Street and commitments to East‑West connectivity, particularly the two‑way conversion of Leland Street, were requested.

Labor and neighborhood advocates asked that Polk Street remain open while studies and appraisals are completed. Lisa Hunt of People for Polk said the group supports expansion in principle but called the current sequencing "poor planning" and requested appraisals and mitigation funds be secured before any abandonment vote. Amy Erickson asked the committee to delay action given 50% design stage and to ensure the city reserves funds for arts, parks and mobility.

Houston First said the financing plan will be reviewed publicly and that Houston First's board would consider the item in November; staff also pointed to the state legislation (cited in presentations as Senate Bill 1057 passed in 2023) that creates a project finance zone and provides dedicated PFC revenue over a 30‑year period. Houston First said PFC revenues are back‑ended over the statutory period and that the project would be financed by a combination of PFC receipts, HOT (hotel occupancy tax) growth and bonds. Hunden noted the city's obligation to carry any debt issued on its books and acknowledged conservative scenarios had been modeled for financing staff.

Committee members asked Houston First to continue community engagement, share the full feasibility and financial documents with council and staff, and coordinate with TxDOT and Public Works on any street changes. Houston First said it would continue to brief the council and to work on MWBE goals and community mitigation measures.

Provenance: Economic‑impact presentation and Q&A from Houston First and Hunden Partners; public comments from People for Polk, Unite Here 23 and other community members.