DEANNEXATION CONSEQUENCES: CAN A DATA CENTER AT STARBASE BE FAR BEHIND?

By Dina Arevalo, South Texas Reporter

MYSA

Despite massive public backlash, Brownsville city leaders approved “a really good deal” to forfeit more than 440 acres of land for SpaceX in exchange for $220 million in funding for future water infrastructure projects.

The Brownsville City Commission reached the unanimous but controversial decision late Saturday, August 29, after SpaceX issued a take-it-or-leave-it ultimatum that had city leaders concerned

Brownsville could lose jurisdiction over the land anyway, with nothing to show for it.

“It’s a really good deal. … I have all the trust and hope that we’re going to sort this out, but it needs to be done today,” said Sheila McCorkle, a Starbae resident and attorney who serves as SpaceX’s general counsel “for all Starbase matters,” according to LinkedIn.

Brownsville officials questioned the forced urgency, but touted the agreements as a way to safeguard the city’s water in a region where long-term droughts and binational policy failures have already threatened supplies. But the hours-long meeting drew sharp criticism from Rio Grande Valley locals, who said they’ve been “left in the dark” over decisions that benefit corporate interests over a largely low-income community.

SpaceX proposed a two-part deal — deannexing 444.45 acres of undeveloped land near the Port of Brownsville, in exchange for up to $220 million for Brownsville to diversify its water supply. City leaders approved the two interdependent deals separately.

Brownsville Mayor John Cowen called the deals “take-it-or-leave-it.” If Brownsville refused or delayed the decision, even by 72 hours, SpaceX would keep the money and scuttle the as-yet unnamed project.

“No, that’s correct,” McCorkle said. “And it’s based on our own roadmap and plans. If this were to be drawn out… we would just have to pivot the project.”

In exchange for deannexing the land SpaceX promised to provide Brownsville $220 million in funding for two major water infrastructure projects — $40 million within the next 30 days for a potable reuse project, and another $180 million over the next year-and-a-half for an expansion of the Southmost Regional Water Authority (SWRA) brackish groundwater plant.

Officials said the first $40 million would allow Brownsville to speed up the timeline for a wastewater reuse project for which the city has already received $12.7 million in state funding. Meanwhile, the remaining $180 million will allow Brownsville to double its groundwater pumping capacity. Together, the projects could produce an additional 18 million gallons of water per day.

Why did SpaceX want Brownsville to deannex the 444 acres of land?

SpaceX was already under contract to purchase the land, which McCorkle described as being between the city landfill and the port. But she declined to discuss what SpaceX planned to build at the site.

Nor did she add why SpaceX felt it was so incumbent for Brownsville to give up its jurisdiction over the land. But Brownsville City Attorney Guillermo “Will” Treviño may have provided some clue. As a part of Brownsville’s jurisdiction, a portion of the 444 acres was already zoned for industrial use; however, some 100 acres were zoned for agricultural use. SpaceX would have had to seek city approval to change that, but that process will likely be far easier in Starbase, where two of the town’s three-person commission work for SpaceX.

“Starbase, depending on their ordinances, can bring it in as whatever zoning classification they… feel necessary,” Treviño said.

Land within a city’s limits is subject to the ordinances of that city, including how a property can be developed. Cities are also obligated to provide basic public infrastructure, like roads, and other public services, like police and fire protection, within their territories. Deannexing a property means the city gives up its jurisdiction and ability to control development.