Desalination plant funding has initial approval. Here's what it means.

The future of what may become the Coastal Bend’s first desalination plant will likely soon become more clear after years of lengthy discussions and heated debate.

An initial vote by the Corpus Christi City Council on Tuesday gave a preliminary nod to move forward on steps to construction of a desalination plant and some of its supporting infrastructure.

With seven desalination-related items approved in 6-3 vote – with City Council members Sylvia Campos and Jim Klein in dissent, and City Councilman Gil Hernandez abstaining – a decision by the council on the items will be made final next week in a second vote.

If all are ultimately approved, it would allow the city to accept a previously state-approved loan of $211 million and gives staff the green light to apply for a new low-interest loan of $535 million.

It would also authorize spending about $3.1 million as a contribution to a new substation that would supply power to the plant, as well as applying for a grant from the U.S. Bureau of Reclamation.

Proposed to generate 30 million gallons of water per day, the proposed site – dubbed the Inner Harbor – is located near the Hillcrest neighborhood on the city’s Northside and the ship channel.

New estimates for the construction portion of the project are more than double  – originally thought to cost about $220 million, costs are now estimated to reach about $541.5 million.

The original estimate was based on 2019 prices – which have since steepened, driven by inflation and a larger project scope from 20 million gallons of water per day to 30 million gallons of water per day, according to city officials.

The estimate five years ago had also not included about $216 million in needed infrastructure, such as connections to the electrical grid and capital projects for a water distribution system, documents show.

Altogether, it brings the estimated desalination project total to $757.5 million.

City Councilman Gil Hernandez – who abstained from the initial vote – grilled staff on information related to the project that he said had not been provided with adequate time for council review prior to Tuesday.

There wasn’t “enough information to make a good decision,” he said, citing a need for additional data on impacts to the city’s debt, debt services and rates.

Information that would address pending questions is anticipated to be made available prior to the final vote next week.

Hernandez had first requested discussion be postponed for 30 days.

Staff said, however, that postponing would mean missing two deadlines – Feb. 1 to apply for a new low-interest loan from the state to cover increased construction costs, and Feb. 7 to accept $211 million from a loan approved by the state in 2020.

The numbers on items such as rates are a moving target, said City Councilman Roland Barrera, in part because of factors that can’t yet be accounted – such as new neighborhoods going up and new or future projects coming online.

The water is still needed, he said, adding that the city has “tabled this for probably four years.”

“There is a cost associated with providing water… but there is also a cost associated from indecision and negligence and inability to make that decision,” he said.

The initial loan approved by the Texas Water Development Board in 2020 totaled about $222 million.

Records show the city had previously spent $11.4 million for early tasks, such as planning, to include studies and permitting efforts.

Issued in two disbursements, the $211 million is earmarked for design-build construction.

The discussion brought roughly 40 people to public comment – about 30 of whom came to the podium opposing the project, and about 10 in support.

Criticism largely centered on concerns about the potential impacts to the Hillcrest neighborhood and the environment, as well as cost questions – skepticism sharpened by the new cost estimates. Supporters asserted that environmental concerns have been studied and addressed, and that securing the additional water source is vital to the area economy and the region’s future.

There has also been dispute on who will benefit from a desalination plant. Proponents have said the development would be for regional growth – residential and commercial – while some opponents have said the water is intended to primarily to serve industrial processes.

Mike Culbertson, CEO of the Corpus Christi Regional Economic Development Center, asserted Tuesday that the council should “move the city and the region forward.”

“We need a drought resistant water source,” he said. “This will be a huge step to ensure future citizens with the resources to grow and prosper. You are a regional water supplier. I urge you to be leaders today; I urge you to be visionaries today.”

Critics have also noted that the facility is not in the harbor but adjacent to the historically Black Hillcrest neighborhood.

Lamont Taylor, vice president of the Hillcrest Neighborhood Association, told councilmembers that the plant should instead be called “the Hillcrest desalination plant.”

“Storage units are going to be in the backyard or the front yard of people who live in Hillcrest,” he said.

City officials attained a water rights permits from the Texas Commission Environmental Quality in October 2022.

The state agency also recently issued a draft discharge permit, which is anticipated to go to a public hearing around March, City Manager Peter Zanoni said last week.

Last week, the city’s combined capacity at its two main water supply sources – Lake Corpus Christi and the Choke Canyon Reservoir – dipped to 29.9%.  The city enters into Stage 2 drought when the combined capacity of the two is 30%.

Stage 2 drought restrictions were postponed based on precipitation anticipated over the weekend as well as the upcoming weekend.

As of Wednesday, the combined capacity was 30.9%, according to data shown on the city’s website.

It is not known yet whether enough rain fell in the watershed to avoid Stage 2 drought from returning in the near future.

More: New estimates show cost increases to Corpus Christi's desalination plant construction

More: Stage 2 drought is here. This is what it means for you.

This article originally appeared on Corpus Christi Caller Times: Corpus Christi desalination plant facing funding construction decision