City opposes Port of Corpus Christi's $495 million loan application for desalination plant

The Corpus Christi City Council is opposing a $495 million loan application the Port of Corpus Christi Authority submitted to the Texas Water Development Board for its Harbor Island desalination plant project. 

Following an executive session, council unanimously passed a resolution during its regular meeting Tuesday requesting the port withdraw its loan application and end all attempts to become a water producer or distributor. The resolution states the city is the regional water supplier as its water system serves nearly 500,000 residents in the Coastal Bend. 

The deadline for the loan application was Feb. 1, and city officials learned of the port seeking the funds less than two weeks ago, Dist. 4 Councilman Greg Smith said at the meeting. 

The application also lists the city of Corpus Christi as a water customer, Smith said. 

"(This is) an application that said (the port) is going to be selling this half-a-billion-dollar project to the city of Corpus Christi, and the Port of Corpus Christi made no effort, did not ask the city, 'Were you interested, would you be a customer, where are you' or anything else," Smith said. "That is very disappointing from another entity."

Dist. 3 Councilman Roland Barrera said the port would need a water customer to pay back the loan funds. According to the city's resolution, the port does not treat water and doesn't have certification to distribute water in the Coastal Bend. 

"One of the most important things for all of us is having affordable, stable water rates for our residents. They've not shown us any (water) rate models," Barrera said. "To engage into a half-a-billion-dollar liability … without providing any type of rate model for anyone is just irresponsible."

The city has submitted permit applications to the Texas Commission on Environmental Quality to build desalination plants at the Inner Harbor Ship Channel and the La Quinta Channel.

In 2020, the city was awarded a $222.5 million loan from the Texas Water Development Board for its Inner Harbor project. 

Port of Corpus Christi resolution 

Tuesday morning, before the City Council meeting, the Port of Corpus Christi Authority passed a resolution in support of "City of Corpus Christi Seawater Desalination Initiatives."

The resolution identifies the city as a utility for water distribution in Corpus Christi and Nueces and San Patricio counties.

The measure includes a directive from the commissioners to port staff to identify local governmental agencies and stakeholders and keep them updated with the status of the port's and city's permits.

Commissioners also instructed staff to engage in discussions with the city about the design, build, operation and maintenance of those proposed facilities.

The port plans to continue seeking the Texas Pollutant Discharge Elimination System and otherwise accomplish "further milestones pre-requisite to the design, build and operation of a desalination facility at Harbor Island," the resolution reads.

The seven-member board — three of whom were appointed by the City Council to represent Corpus Christi — passed the resolution unanimously.

Port commissioners could not immediately be reached Wednesday for additional comment.

This is a developing story. Check Caller.com for updates.

Staff writer Chase Rogers contributed to this article.