Sinton council amends Somerset PID agreement to define data centers, secure water and power capacity

The Sinton City Council on March 17 approved an amendment to the Somerset Public Improvement District No. 2 development agreement that adds a definition for “data center,” clarifies industrial-use language and formalizes commitments on water rights and electrical capacity for future development.

Wiley Mcllwain, owner of Somerset Land Company LLC, told the council he owns water rights underlying roughly 1,200 acres and that coordination with the San Patricio Groundwater District yielded a permitted production figure the parties described in different ways during the meeting. City staff described a figure of about 1,900 acre-feet of permitted production (presented by staff as roughly 1,450,000 gallons per day), while Mcllwain later referenced a number closer to 1,745,000 gallons per day. The amended agreement, as discussed, would reserve up to 1,000,000 gallons per day for light industrial uses and about 450,000 gallons per day for residential and retail needs, with any supplemental allocation to PID No. 1 as previously arranged.

Mcllwain said the developer will convey water rights to the city as development proceeds; city staff cited an expected conveyance of approximately 1,960 acre-feet per year as part of the amendment. He also reported that AEP has agreed to purchase land for a substation and that an electrical-capacity study identified substantial capacity, with the development evaluated for high-demand uses such as data centers, battery storage and power generation. City Manager John Hobson and Mcllwain described that the electrical analysis was done in part to position the site to attract users without risking the city's existing water supply, noting that reserved capacity gives flexibility for different industrial users to be considered case by case.

Mayor Mary Speidel asked whether the 1-gigawatt capacity referenced in the study had to be tied to a single user; staff said the reservation was meant to ensure the infrastructure and approvals are in place for qualifying users, not to guarantee allocation to a specific company in advance. The council voted 4-0 to approve the resolution amending the development agreement.

The amendment is intended to make the city more competitive for industrial development while establishing explicit definitions and resource allocations for the PID. The project proponents said remaining details about individual industrial proposals, precise engineering and any future utility agreements will be handled through subsequent land-use approvals and developer–city agreements.