HomeMy WebLinkAboutC2025-064 - 4/21/2025 - NA Memorandum of Understanding
The City of Corpus Christi (City) and Evangeline Laguna Water LP and related entities
(Evangeline) are discussing the purchase of water rights and related rights in approximately
23,000 acres in San Patricio County.
The purchase will include existing water rights permits and other permits to be discussed in
negotiations. The parties will work to identify the location of the real property and the price of
the proposed water rights, permits required (if any) and necessary surface rights (including the
test wells drilled by Evangeline under the aforementioned real property) with a target date before
June 2,2025.
Terms. The City has indicated that the City is interested in negotiating a purchase of water
rights appurtenant to 1/2 of the real property along with other property rights to be defined in a
manner that provides for efficient extraction of the water and transportation to the Mary Rhodes
Pipeline. The City's right to negotiate the Transaction with Evangeline is non-exclusive, and
Evangeline is free to negotiate with third parties to sell or lease water rights prior to the closing
of the Transaction unless otherwise agreed to by the parties during negotiations. City staff intend
to present the terms of this proposed transaction to the City Council for their consideration no
later than June l Oth.
Process. Between the Effective Date and the closing date ,the City intends to conduct such
due diligence as it deems necessary, and Evangeline agrees to provide all materials and
information to the City concerning the water rights and other rights in the property as is
reasonably requested. During this period, the City and Evangeline intends to identify all
definitive agreements necessary to complete this transaction. The parties will target a closing date
of June 30, 2025.
If the Closing does not take place by June 30, 2025, this MOU shall terminate and neither
Party shall have any rights or obligations hereunder.
t
ter Zan rty Manager
City of Corpus Christi
Edward Cross