The Nueces River Authority (NRA) board voted Thursday to select IDE Technologies as its development partner for the Harbor Island Seawater Desalination Plant. The decision came as the agency's Chief Financial Officer had been wa rning leadership that the NRA may not have enough revenue to sustain operations through the end of the fiscal year.The planned facility on Harbor Island would initially produce 100 million gallons of fresh water per day. Executive Director John Byrum told KRIS 6 News Thursday the total cost is approximately $6.4 billion roughly $3.2 billion for the plant itself, funded through a private partnership, and another $3.2 billion for a pipeline system.The Port of Corpus Christi approved a 31-acre lease to the NRA for the Harbor Island site, with the plant capable of producing up to 100 million gallons of fresh water daily.Cities and water districts that have signed reservation agreements will be asked to sign take-or-pay contracts legally binding agreements to purchase their reserved water supply. Byrum said those commitments will form the financial foundation for the project."Failure wasn't an option," Byrum said. "We took a big step today and we look forward to negotiating the agreement and pushing the project along."He told KRIS 6 News the agency is still targeting a December 2029 delivery of water to the City of Corpus Christi, though he acknowledged construction timelines can shift.IDE Technologies Director of Texas Business Development Mark Ellison said the company brings six decades of experience and has built more than 400 desalination plants globally. He said IDE plans to share both the risk and the financing."We're going to bring the best and brightest team to the table to make it affordable," Ellison said. "We're going to share the risk. We're bringing funding to the table."Ellison said the Harbor Island location works well because the plant would draw directly from Gulf of Mexico water and return brine to deep water, which he said reduces environmental impact. He said IDE plans to be transparent throughout the process, including conducting public education about seawater desalination."We owe it to them to make sure they get their questions answered early," he said. "We're going to be an open book."Thursday's vote came as internal emails obtained by KRIS 6 News through a public information request show the agency's Chief Financial Officer, Robin Murray, has been warning leadership since at least March that expenses are outpacing revenue.In emails to Executive Director John Byrum and Deputy Executive Director John Chisholm, Murray wrote that all departments except Utilities and Desal were showing higher expenses than revenue, and that she was concerned the agency could not sustain operations through the remainder of the fiscal year without additional revenue.By April 20, Murray reported the General Fund was bringing in approximately $56,000 per month in contract revenue against monthly expenses of nearly $150,000.The NRA does not levy a property tax, unlike some other Texas river authorities. Corpus Christi City Manager Peter Zanoni told KRIS 6 News Thursday that creates structural challenges for the agency."Their revenues are not recurring," Zanoni said. "They either come in lump sum through grants or, in the case of their reservation fee program, they're one-time. They'll continually have to look for one-time revenues or set up some type of recurring revenue structure."Zanoni said he would recommend to Corpus Christi City Council against paying any additional reservation fees at this time, noting the city already made a two-year, $2.7 million payment upfront. He has said he stands by the original decision to enter the agreement, noting the city's participation led the NRA to shift its proposed pipeline route closer to Corpus Christi a change he said will save ratepayers millions of dollars.To address the financial gap, the board took several actions Thursday, including shifting portions of staff salaries including 75% of Byrum's salary to the desalination budget. The board also voted to meet monthly instead of quarterly and directed Byrum to provide monthly financial reports.Board President Eric Burnett told KRIS 6 News the board spent extensive time Thursday on the financial situation and said the actions taken were directly aimed at addressing it. He said he has a high level of confidence the project will move forward, citing demand for water in the region.What's nextThe NRA will negotiate a Phase 1 Development Agreement with IDE. The first phase will focus on completing permitting, designing an expandable plant, securing power for the facility and conducting outreach to potential customers.Zanoni said the city plans to monitor the agency's finances closely."I'm not panicked," he said. "But I think what this tells us is we have to watch and lend support to the river authority." ...read more read less