CORPUS CHRISTI, Texas — The City of Corpus Christi is preparing to spend $169 million to buy groundwater rights tied to 22,789 acres north of Sinton — even though the city’s own appraisal values the property at just $108 million.
The $61 million gap is drawing scrutiny as officials weigh whether the long-term need for water justifies paying well above market value — before permits are approved or water treatment plans are finalized.
The City Council is expected to vote Tuesday on the deal, which would allow the city to pump 12 million gallons of groundwater per day, with the option to double output in the future.
Under the terms, Corpus Christi would pay $1 million for a 120-day inspection period and put $3.25 million into escrow — funds that become non-refundable before any state permits are approved.
According to the agreement, Evangeline/Laguna LP - a company that has been acquiring groundwater rights from private landowners in San Patricio County - will have 180 days after the inspection period to provide final, non-appealable permits for 22 wells, the production permit, and the transport permit, with closing to occur 60 days after all permits are obtained. In total, the process could take nearly a year from inspection to closing.
Despite the price, city officials say the purchase is strategic.
“Just like in real estate — location is critical,” said Nick Winkelmann, interim chief operating officer for Corpus Christi Water. “This land is adjacent to the Mary Rhodes Pipeline, which allows us to deliver water sooner.”
Winkelmann said the project would also reduce the city’s dependence on lakes and rivers.
“While the city has done a good job of diversifying its surface water with the reservoirs — most of our supply is surface water and climate-dependent,” he said. “Bringing on groundwater is the first step to diversify that portfolio.”
But the project faces both environmental and political opposition.
Sinton’s City Manager, John Hobson has vowed to contest the permits, warning that heavy pumping could deplete the region’s shallow aquifers and hurt nearby communities. In response, Corpus Christi says it’s working on an interlocal agreement that would include a dedicated water line to help mitigate local impacts.
Councilwoman Carolyn Vaughn supports the purchase despite the cost.
“I don’t like that it’s at $169 million, but water’s only going to get more expensive,” Vaughn said. “Water is gold — and if we don’t get it, someone else will. If we had done it sooner, it would’ve been cheaper.”
Vaughn said she believes Evangeline/Laguna LP may have another buyer and that the city has little choice but to move forward.
This is not the first time Corpus Christi has pursued a deal with Evangeline/Laguna LP. A similar agreement in 2022 — for roughly $110 million — was abandoned by the limited partnership.
The $169 million price tag may be just the beginning. Estimates shown to Kris 6 from Evangeline/Laguna LP, show that once pipelines, infrastructure, and water treatment are included, the total project could cost up to $840 million.
Early water quality tests also raised concerns. One of the test wells showed arsenic levels above federal limits, meaning reverse osmosis treatment may be required before the water is safe to use.
Winkelmann told KRIS 6 that the two test wells produced different readings, and that all 22 wells will be tested before determining treatment needs. Reverse osmosis, he adds, could be a long-term goal.
City staff say the inspection process is already underway, but no final decision will be made until the City Council votes on the agreement.
The city used a state exemption under Texas Local Government Code Section 252.022(a)(2) to bypass the normal competitive bidding process. That clause allows cities to skip public bids for purchases “necessary to preserve or protect the public health or safety” of residents.
Officials argue the groundwater purchase qualifies because of Corpus Christi’s ongoing drought and the need to secure future supply.
The move is legal but uncommon for a deal of this size. Critics say the exemption — typically used for emergencies or urgent repairs — limits transparency and competition for a project that’s been under discussion for more than a year.
Public records do not show what Evangeline/Laguna LP paid original landowners for their groundwater rights, making it unclear how much profit is built into the city’s $169 million purchase price.
The City Council will vote Tuesday morning on whether to approve the agreement — a decision that could shape Corpus Christi’s water future for decades to come.
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