After Months of Deliberation, Port Finalizes Handoff
After nearly a year of negotiations, the Port of Corpus Christi has officially authorized a lease and use agreement that hands off development plans for a seawater desalination plant on Harbor Island to the Nueces River Authority. The July 15 resolution marked major progress in South Texas’s effort to secure alternative water for future needs.
The 31-acre parcel on Harbor Island will now be under the control of the river authority, which plans to construct, own, and operate the desalination facility in partnership with a private company.
A Longstanding Vision Transferred
The Port of Corpus Christi spent years securing permits for Harbor Island’s desalination project, intending eventual transfer to another entity. Last fall, the Nueces River Authority submitted an unsolicited proposal to acquire permits and lead the project’s development efforts.
The authority, mandated by state law to manage water resources in the region, now bears the responsibility for building the plant and establishing delivery lines. The private partner, still unnamed, will provide the engineering and technical expertise required for the large-scale facility.
Lease Agreement Includes Incentives for Corpus Christi
According to Port CEO Kent Britton, the lease agreement, set to take effect in August, includes financial incentives designed to encourage collaboration between the City of Corpus Christi and the Nueces River Authority. Specifically, the port will discount a portion of the rent owed by the river authority if it agrees to sell water to the city. That discount, valued at 10 cents per thousand gallons, aims to make desalinated water more affordable for residents of Corpus Christi.
“We hope that incentive will encourage both parties to work together in the future,” Britton said.
Terms of the Agreement
Under the lease, the Nueces River Authority will pay over $32,000 monthly in year one, rising to $58,000 afterward. The agreement functions as an option during the first two years, allowing the authority to exit if the project fails.
Britton emphasized that Harbor Island remains a highly valuable asset. “We priced this exactly like we would any other commercial land lease,” he noted. “We recognize the value of this property and treated it accordingly.”
The agreement lists key milestones the river authority must achieve during pre-construction and construction project phases.
Commitments from Municipalities Already Secured
Before signing the lease, the Nueces River Authority began seeking commitments from South Texas municipalities. These reservation contracts guarantee future water access, covering 38% of the facility’s 100-million-gallon daily capacity.
If additional agreements exceed that capacity, some municipalities will need to wait until the facility is expanded, according to Executive Director John Byrum.
Potential Expansion and Cost
Byrum shared the river authority may expand the facility’s capacity from 100 to 450 million gallons daily. Constructing a pipeline system to transport water throughout South Texas could cost up to $3 billion. The entire project, including the plant and infrastructure, is estimated to be between $4.5 billion and $5.5 billion.
The private partner would initially finance the construction, with the river authority eventually assuming complete ownership and operation, potentially within 30 years.
Addressing Environmental Concerns
Notably, the agreement reaffirms the port’s commitment to the discharge of treated wastewater offshore. The port’s earlier inshore discharge permit faced backlash over potential harm to marine life and ecosystems.
Commissioner Diane Gonzalez reaffirmed the Port’s commitment to move forward with offshore water discharge.
What’s Next?
The lease agreement will take effect this August, and early efforts will focus on securing commitments, designing engineering plans, and engaging the community. Though inexperienced in seawater desalination, the Nueces River Authority’s partner will lead construction and operations.
Focused on sustainability and long-term water security, this partnership could transform South Texas’s access to essential water resources.