SpaceX seeks to take zoning control over nearly 450 acres from city of Brownsville as a ‘regional’ water deal takes shape

Editor’s note: The Brownsville City Commission special meeting originally scheduled for Friday, Aug. 28, has been rescheduled for 4 p.m. Saturday, Aug. 29.

SpaceX is asking Brownsville to remove roughly 444 acres from the city limits as the company prepares for an expansion near the Port of Brownsville — and negotiations surrounding the request could bring a major investment in the region’s water supply.

The Brownsville City Commission approved the first reading of an ordinance granting SpaceX’s voluntary disannexation request during a special meeting called on Aug. 21, according to a news release from Brownsville. A recording of that meeting was not available as of Monday afternoon.

A second and final vote is scheduled for Friday, Aug. 28. 

The property sits along South Connector Road, just east of the Brownsville landfill. SpaceX told the city it intends to use the land to expand operations closer to the Port of Brownsville and that the site will not be used for rocket launches or rocket testing.

SpaceX requested the disannexation because the property currently does not receive city services, according to Brownsville.

But the city’s announcement Monday revealed another significant piece of the negotiations: SpaceX is discussing a financial contribution toward expanding a regional water system serving Brownsville and surrounding communities.

Water investment could expand regional capacity

The negotiations involve the Southmost Regional Water Authority, a regional water project in which the Brownsville Public Utilities Board is the principal shareholder.

If the project is fully developed as contemplated, Brownsville said it could approximately double current potable water production capacity and provide additional water resources for Brownsville and surrounding communities, according to the city’s calculation. 

The city did not disclose how much SpaceX could contribute or the total cost of the proposed expansion.

Those terms remain under negotiation, and no agreement has been finalized or formally approved.

The discussions come as Brownsville and the broader Rio Grande Valley grapple with the long-term challenge of securing enough water to accommodate population and industrial growth.

According to the city, the potential investment is intended to help fund infrastructure needed to increase the region’s drinking water supply while strengthening long-term water security.

Why SpaceX wants out of the city limits

Disannexation would remove the 444 acres from Brownsville’s municipal boundaries.

The company cited the lack of city services to the property in making its request, according to Brownsville.

The city also acknowledged that commissioners have limited leverage over whether the property ultimately remains within Brownsville.

Under Texas law, Brownsville said, a property owner that meets applicable statutory requirements may be able to seek disannexation through the courts even if commissioners reject the request.

That leaves city leaders weighing whether approving the request through negotiations could secure benefits for Brownsville that might not otherwise be available if the matter moves to court.

The city characterized the potential regional water investment as part of those broader discussions, although it did not say that SpaceX’s contribution is legally contingent on commissioners approving the disannexation.

Final vote set for Friday

The first vote does not remove the property from Brownsville.

Commissioners are scheduled to consider the ordinance on second reading during a special meeting at 5 p.m. Friday at Brownsville City Hall.

If approved, the city’s boundaries would be adjusted to remove the approximately 444-acre tract in accordance with the final property description and other requirements under Texas law.

Until then, the property remains within Brownsville.

The water agreement also remains unfinished. The city said SpaceX’s proposed contribution and its terms will require completion of negotiations and approval through the appropriate public process.

Editor’s note: This breaking news report was produced with the assistance of artificial intelligence. Reporting, fact-checking and final editing were conducted by Kristen Mosbrucker-Garza and Naxiely Lopez-Puente.