Brownsville could receive up to $220 million from SpaceX for major water and wastewater projects under a deal that removes roughly 445 acres of land from the city’s jurisdiction.
Brownsville city commissioners unanimously approved the deannexation during a six-hour special meeting Saturday. In exchange, SpaceX agreed to provide funding that city officials say could dramatically expand Brownsville’s water supply and reduce its dependence on the Rio Grande.
Under the agreement, SpaceX will make an initial $40 million payment into escrow, followed by six quarterly payments of $30 million each. The total contribution could reach $220 million.
The money is expected to support two major projects. One is a wastewater reclamation project capable of providing an additional 8 million gallons of water per day. The other is an expansion of a Southmost Regional Water Authority plant in Brownsville that is expected to add approximately 10 million gallons per day to the region’s water supply.
Brownsville currently uses about 21 million gallons of water per day. Roughly 70% comes from the Rio Grande, with the remainder produced through the city’s groundwater desalination plant.
“This investment will allow us to reduce or completely eliminate our reliance on the Rio Grande River,” Brownsville Mayor John Cowen Jr. told the Tribune on Monday. “So if the Rio Grande River goes dry for any reason, we are assured water sustainability for generations to come.”
The SpaceX money would also allow Brownsville to move forward without competing for grant funding or borrowing money to pay for the projects. Borrowing could ultimately result in higher costs for utility customers as the city repaid the debt.
But the offer came with a tight deadline.
Sheila McCorkle, SpaceX’s vice president for Starship legal and regulatory issues, told commissioners that the company wanted the property removed from Brownsville because the city was not providing services to the area. She said those services could be provided through the city of Starbase more quickly and economically.
SpaceX also made clear that commissioners had to approve the deal Saturday or risk losing the funding.
“If the council decides to not deannex, we will look at other opportunities at our other facilities,” McCorkle told commissioners.
That deadline drew criticism from residents who questioned why such a significant decision was being made with little time for public scrutiny.
“Why are we rushing this? Why are we here on a Saturday?” Brownsville resident Uriel Gavito said. “Why can’t we know what they’re going to do with the land? Why can’t we know why they need it to be outside of the city’s jurisdiction? These are valid questions. These are questions that a regular city should ask and understand before voting on something.”
Cowen acknowledged those concerns, saying SpaceX had proposed the deal only about a week and a half before the meeting.
“It is rushed. There’s no doubt,” Cowen said. “I wish we had another month or two to really work this out, but this is a take it or leave it deal.”
The 445 acres could be particularly valuable to SpaceX because of their location near the Port of Brownsville. The property sits between the city landfill and other industrial operations and provides access to the Brownsville Ship Channel.
Most of the property is already zoned for heavy industrial use, while the remainder is zoned for agriculture. Once the land is removed from Brownsville, however, the city will no longer have zoning authority over it.
Cowen said he believes SpaceX plans to use the property as part of its Starship manufacturing and transportation operations.
“I believe that they will be producing their Starship rockets at Starbase, and then transporting them through this property to be transported, via barge, to Louisiana,” Cowen said.
The agreement comes as SpaceX, owned by Elon Musk, continues expanding its presence in the Brownsville area.
The company has purchased 54 acres on South Padre Island and received approval for a nearly 40-acre heavy industrial development in Starbase, according to reporting by the Rio Grande Valley Business Journal.
Transportation infrastructure around Starbase is also slated for a major expansion. A $192.4 million project to widen State Highway 4 between Brownsville and Starbase was included in the Texas Department of Transportation’s 2027 Unified Transportation Program. Construction is expected to begin in fiscal year 2027.
Starbase itself is also looking to grow. The city, which was incorporated largely by SpaceX employees, is seeking to annex approximately 7,133 acres in Cameron County and has scheduled public hearings on the proposal in September.
As SpaceX expands, water use has become another consideration. McCorkle told Brownsville commissioners that the company’s operations currently account for about 2 million gallons of water per day.
She emphasized that SpaceX’s financial contribution to Brownsville’s water projects does not guarantee the company additional water or priority access.
