HOUSTON – This previous March, KPRC 2 Investigates offered Houstonians an in-depth take a look at the Houston Airport System’s Improvement Company (HASDC), a small company with three staff incomes greater than $800,000 yearly mixed. “I admire you bringing this ahead, however with out you, I’d not learn about it,” mentioned Mayor John Whitmire.

KPRC 2 Investigates continues to shine a light-weight on HASDC, which assists Latin American nations in enhancing their airport operations. Its largest income producer is the Worldwide Airport in Quito, Ecuador, producing round $2.1 million, in keeping with Agustin Arellano, President and CEO of HASDC.

Our preliminary report confirmed how HASDC is “affiliated” with the Houston Airport System however has no authorized or monetary duties. Arellano provides, HASDC is a non-public non-profit company, self-funded with none contributions from town or the Houston Airport System. The company was established practically twenty-five years in the past with approval from the Houston Metropolis Council.

Lower than 24 hours after our first report, HASDC’s web site was taken down and revamped, eradicating mentions of affiliation with the Houston Airport System, and including a brand new coverage part. “We determined to scrub that up as a result of we actually are usually not affiliated, we work for, however we’re not affiliated,” mentioned Arellano.

Throughout our months-long investigation, we uncovered quite a few emails displaying collaboration between high-ranking executives inside the metropolis’s airport system and Arellano’s staff. Notably, the Aviation Director for the Houston Airport System additionally serves because the Chairman of HASDC’s Board. Jim Szczesniak, who grew to become town’s new Aviation Director following the abrupt resignation of former director Mario Diaz, despatched Arellano a letter asking lots of the identical questions we had beforehand posed to Szczesniak.

Diaz, the previous airport director has no ties to KPRC 2 Investigates Mario Diaz.

Our investigation reveals that the personal non-profit has been reporting total internet belongings of roughly $20 million to the IRS. HASDC’s IRS filings state, “The group seeks to advertise air transportation, commerce, and financial growth for the advantage of the Houston Airport System,” because it gives assist globally beneath the title Houston Airport System Improvement Company.

“Are you aware of any time we’ve seen any sort of cash getting back from Ecuador on this,” we requested the Metropolis of Houston’s Legal professional Arturo Michel.

He responded with the Mayor by his facet, “We’re having the finance division and authorized check out that to see what’s are available.”

Arellano talked about that lately, HASDC offered a $5 million grant to Collins Aerospace, an anchor tenant on the Houston Spaceport. This occurred though the Spaceport has its personal Improvement Company with membership appointed by the mayor.

Arellano famous the airport’s involvement within the grant course of, “They go to HAS, they usually do the appliance, after which HAS can deliver these instances,” mentioned Arellano.

When requested if this was an open grant to any company, Arellano admitted, “No, no it isn’t open to any company.”

Nevertheless, the Houston Airport System tells KPRC 2 Investigates it has no information for grant functions after we filed a Texas Public Data Act request for the functions Arellano talked about.

We introduced our findings to former U.S. Legal professional Ryan Patrick, who bluntly informed us, “By these paperwork, you possibly can’t precisely inform what this non-profit is for and what they do.”

Patrick, who has expertise in analyzing IRS filings to make sure compliance with federal legislation, mentioned, “I’d begin asking a variety of questions. I’d wish to see information, perceive which public staff are engaged on these tasks, and get behind these IRS filings.”

Though he’s solely been on the job for just a few months, Szczesniak believes the personal non-profit, separate from town however whose enterprise he helps oversee, is useful.

“What we are attempting to do is use it to generate financial exercise for the Houston area. Whether or not we pour that into the airports or the spaceport, it’s all about rising the financial system in Houston,” mentioned Szczesniak.

The Houston Airport System states HASDC offered a $250,000 grant to San Jacinto School for an aviation program and $50,000 for a brand new chapel at William P. Interest Airport.