"Do your homework," Crystal Clear board tables proposed data center water agreement

AUSTIN, Texas — A proposed agreement to provide water service to a planned data center drew hours of discussion and a packed crowd to a Crystal Clear Special Utility District board meeting in San Marcos on Wednesday.

Community members, landowners, project representatives, and utility customers filled the meeting room and hallway as board members considered the proposal.

Many speakers focused on water use and whether enough information is available before moving forward.

“I’m so distraught that we’re here talking about something that takes half a million gallons of water a day,” one resident, Ms. Martin, told board members during public comment.

Crystal Clear serves customers in parts of Hays and Guadalupe counties.

Several people who spoke during the meeting urged the board to take more time before making a decision.

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Sam Lyes, who spoke against the proposal, argued the issue deserves additional scrutiny.

“I would say that a special utility district, which is to serve and provide water to their customers, taking on a new customer that’s equivalent to about a third to a quarter of their existing water usage, contracting out for who knows how long this is gonna be, is something that’s of significant public interest,” Lyes said. “Do your homework, do the studies.”

Others questioned whether enough research has been completed to fully understand the project’s long-term effects.

Crystal Clear Director Jamie Trant said board members also have a responsibility to consider what could happen if concerns raised by opponents become reality.

“If we sell water and everybody’s electric bills go up, and the water’s polluted and there’s a heat zone, that is directly our fault,” Trant said.

Supporters of the project argued that the development could provide economic benefits for the area.

Thomas Dubel, a technology development consultant representing Palomino Alpha, said the project could provide a significant boost to Navarro ISD through property tax revenue.

“One of the benefits of our data center is that we are going to it’ll probably put a minimum of $400 million of tax, property tax revenue into that school system, which is greatly needed,” Dubel said.

Guadalupe County Judge Kyle Kutcher, who told the board he also has land involved in the project, said local officials have limited authority to stop development as the county continues to grow.

“We cannot tell somebody we don’t want that development,” Kutcher said. “We’ve been affected by it. We’ve been impacted by it.”

Kutcher argued that local governments are often trying to keep pace with rapid growth.

“And the truth is that the development community can move much faster than the government can,” he said.

Not everyone in attendance agreed.

“You can sell your property to anybody you want, but not when it affects everyone else around you,” resident Ms. Kraft told the board.

The board later went into executive session before voting to table the proposed WNSSA Palomino Alpha LLC agreement.

The decision means the board did not take final action on the proposal on Wednesday night.