SpaceX Starship and Super Heavy booster stacked at Starbase in Texas in January 2023. (Image: SpaceX)
BROWNSVILLE, Texas - Brownsville could receive up to $220 million from SpaceX to fund water and wastewater projects after the city voted to remove around 445 acres of land from its city limits.
City commissioners held a special meeting on Saturday where they unanimously voted to de-annex the land. In exchange, SpaceX plans to invest up to $220 million in water and wastewater projects.
"Brownsville is growing, and we have a responsibility to make sure our infrastructure grows with it," Brownsville Mayor John Cowen Jr. said. "Increasing our water capacity is an investment in the future of our residents, our businesses and the generations that will call Brownsville home."
During the meeting, city commissioner Tino Villarreal confirmed that the funding was tied to the de-annexation of the land and questioned SpaceX on why they felt the need to move so quickly on the project.
"What's the rush?," Villareal said.
What they're saying:
Sheila McCorkle, SpaceX's vice president for Starship legal and regulatory issues, said the company liked to do things as quickly as possible and that if the city didn't want to de-annex the property then SpaceX would look at property near their other facilities.
"It's not secret Space X has very grand ambitions," McCorkle said.
The projects that would be funded by agreement include a reuse and reclaim program that would increase the water supply by 8 million gallons per day and an expansion of a Southmost Regional Water Authority plant that would increase supply by up to 10 million gallons per day.
McCorkle said SpaceX projects in the area used around 2 million gallons of water per day and that the agreement does not give them special treatment from the Brownsville Public Utilities Board.
"We're not guaranteed water by BPUB through this agreement, we're in line like everyone else," McCorkle said. "So this is really trying to expand the pie for the whole community and address what we saw was a really acute need and in a way that we think is beneficial to all."
By the numbers:
Under the agreement, SpaceX will make an initial contribution of $40 million to an escrow account. The remaining money will be delivered in $30 million installments quarterly, for a total investment of $220 million.
According to a release from the city, BPUB wants to increase SWRA production from 7.5 million gallons per day up to 10 million gallons per day, with a long-term plan to increase the output to the potential of 20 million gallons per day. They estimate the initial jump will cost around $46.8 million, while the total investment is estimated at approximately $202 million.
The city currently gets around 70% of its water from the Rio Grande. The city uses around 22 million gallons of water per day.
"Water is fundamental to Brownsville’s future," Cowen said. "This agreement gives us an opportunity to make a significant investment in a resource that will help us responsibly plan for growth and continue building a stronger community."
The Source: Information in this article comes from comments made during an Aug. 29 meeting of the Brownsville City Commission and a release from the city of Brownsville.