Brownsville Approves Agreement with SpaceX for Up to $220 Million for Water Projects
· Telemundo McAllen (KTLM)
BROWNSVILLE, Texas – The Brownsville City Commission approved a Memorandum of Understanding with SpaceX that includes a contribution of up to $220 million for water and wastewater infrastructure projects, aimed at increasing the availability of these resources in Brownsville and Cameron County. The agreement was approved during a special meeting held on Saturday, August 29, at Brownsville City Hall and will benefit the Brownsville Public Utilities Board (BPUB) and the Southmost Regional Water Authority (SRWA). According to the city, the agreement establishes an initial contribution of $40 million, which will be placed in an escrow account, followed by six quarterly payments of $30 million each, to reach a maximum contribution of $220 million. The funds will be restricted to water and wastewater projects that meet established criteria and will be released as different project milestones are achieved. The city clarified that the agreement does not represent a purchase of water capacity by SpaceX, ownership interest, or an advance payment of utility fees. Identified projects include initiatives for potable water reuse and wastewater recovery that could increase supply by approximately 8 million gallons per day. An expansion of the Southmost Regional Water Authority plant is also planned, which could add about 10 million gallons of water per day to its capacity. BPUB aims to initially increase the plant's production from 7.5 million to 10 million gallons per day, with a long-term goal of reaching 20 million gallons per day. The first phase of optimization is estimated to cost approximately $46.8 million, while a potential expansion to achieve 20 million gallons per day would cost around $202 million. 'Brownsville is growing, and we have the responsibility to ensure our infrastructure grows alongside the city,' said Mayor John Cowen Jr., who described the increase in water capacity as an investment for residents, businesses, and future generations. According to municipal officials, the additional capacity aims to strengthen the long-term water supply, support residential and economic growth, and prepare the community for increased demand. During the same meeting, the Commission also approved on second and final reading an ordinance to remove approximately 444.45 acres, along with adjacent rights-of-way, from the corporate limits and extraterritorial jurisdiction of Brownsville. The property is located in Cameron County and is part of the San Martin Grant. The city will work with BPUB and other stakeholders to identify, develop, and implement the projects that will receive the resources outlined in the agreement, which must meet the relevant engineering, permitting, legal, and progress requirements before receiving funding.
AI summary · Source: Telemundo McAllen (KTLM) →
