The city of Corpus Christi’s potential purchase of a partially constructed desalination plant, currently owned by a plastics manufacturer, is off the table.
In an Oct. 23 letter to City Manager Peter Zanoni, Corpus Christi Polymers officials wrote that they had “decided not to proceed with the proposed discussions regarding the potential acquisition of our Desalination property at this time.”
“This decision reflects our current operational priorities and strategic direction,” states the letter, shown as signed by Chief Operating Officer Jeff Shea. “That said, we remain open to exploring alternative forms of collaboration that could benefit both the City and CC Polymers.”
In this archive photo, a train is shown passing the Corpus Christi Polymers property Jan. 26, 2023.
City officials had been considering the possibility of purchasing Polymers’ plant — described as being between 90% to 95% complete — as a prong of its water supply management strategy.
The plant was permitted and believed to be capable of generating as much as 9.4 million gallons of treated water per day, if it were up and running.
Neither the plastics manufacturing plant nor the desalination plant has ever been in operation, according to city officials.
A preliminary price tag quoted in a presentation earlier this month estimated about $225 million for the initial buy.
Expanding the plant to produce as much as 31.5 million gallons of treated water per day was estimated at about $654 million, staff told the council — a number that would include needed capital improvements, as well as permit adjustments that would allow for higher-volume capacity.
However, staff cautioned the City Council in its Oct. 14 meeting that Corpus Christi Polymers was owned by three different entities, each of which would need to agree to the desalination plant’s sale.
Instead of selling the plant, Corpus Christi Polymers suggested discussing versions of a water supply agreement.
It’s “just an expression of potential business agreement between the parties,” Shea wrote in the letter, adding that “discussion opportunities” will expire Nov. 30.
“Thereafter, CC Polymers will move forward and explore direct water supply opportunities with private industry,” he wrote.
The City Council, two days before the letter was sent, had approved millions of dollars in funding for other water projects.
That included about $169 million in groundwater rights for a project outside Sinton, as well as a $2.7 million reservation fee for desalinated water sourced to a proposed plant on Harbor Island.
The project is currently being led by the Nueces River Authority but is planned to evolve into a public-private partnership.
This article originally appeared on Corpus Christi Caller Times: Plastics company’s desalination plant off the table for city purchase