State board says redirecting Inner Harbor Desal funds unlikely, debt still due

CORPUS CHRISTI, Texas — Corpus Christi taxpayers remain on the hook for at least $231 million — plus interest — for the proposed Inner Harbor desalination plant, even if it’s never built, according to a new letter from the Texas Water Development Board (TWDB).

The August 8 letter, addressed to Councilwoman Carolyn Vaughn, outlines the city’s financial commitments under the State Water Implementation Fund for Texas (SWIFT). TWDB records show $235.2 million in bonds have already been issued for the project, with repayment scheduled through 2054.

The letter says the city must decide by September 5 whether to close on another $210 million in SWIFT funding this fall. If the city declines before TWDB begins pricing its bonds, penalties could be as high as $11.6 million to cover issuance costs.