Consider and take appropriate action to approve the Community Involvement proposals submitted by the Colorado River Project, LLC for consideration in fulfillment of Section 4.10.2.4 of the Economic Development Performance Agreement for Performance Years 2025 and 2026. (Commissioner Jeffrey W. Travillion, Sr.)

Staff Report & Agenda Item Details

The Economic Development Performance Agreement with the Colorado River Project, LLC (Agreement) requires the Company to undertake specified Community Involvement (Investments) over the term of the Agreement. The Investments must be equal to at least 10% of the Operations and Maintenance (O&M) ad valorem property tax owed by the Company each year. In accordance with the Agreement, the Company is required to make eligible Investments equaling approximately $2,024,026.50 in Performance Year 2025 (2025) and $3,320,318.92 in Performance Year 2026 (2026). <br><br id="isPasted">The Agreement identifies eligible investments as affordable housing (Section 4.10.2.1), public transit improvements (Section 4.10.2.2), and contributions to the Community Benefit Fund within Capital Economic Progress Corporation (Section 4.10.2.3), which do not require advance approval by Commissioners Court. <br>Alternatively, the Company can invest in other programs that improve economic development outcomes in Travis County (Section 4.10.2.4) such as workforce training, environmental stewardship, public recreation, and related community benefits. Investments proposed under Section 4.10.2.4 require advanced approval by Commissioners Court. <br><br>For Performance Year 2025, the Company has proposed $21.7 million for a wastewater interceptor designed to serve the approximately 10,000-acre drainage basin north of the project, $2.7 million for a reclaimed water line reaching to Downtown Austin, and $967,000 for teacher salaries and lab equipment for Del Valle ISD. <br>The attached 2025 Tesla Proposed Community Involvement details the proposed projects totaling $25,376,000, which would satisfy the requirements of Section 4.10.2, as 2025 Community Involvement projects.  These projects are classified as environmental stewardship and workforce training under Section 4.10.2.4, as they provide workforce training and environmental benefits to the larger community and in the approximate 10,000-acre drainage basin. The total amount of the reported spend in 2025 exceeds the minimum required expenditure for that performance year. <br><br>The wastewater interceptor facility will eliminate or reduce the need for other wastewater customers in the drainage basin to rely on septic systems and prevent discharges. Approximately 11% of the capacity of the interceptor is allocated to the Colorado River Project and the remaining 89% is allocated to other current and future wastewater customers in the drainage basin. <br><br>The reclaimed water line projects include the extension of a 24-inch reclaimed water line approximately 1 mile north of the Colorado Rover Project and the construction of a 42-inch line that provides additional capacity to Austin Water’s reclaimed water network. Austin Water has allocated approximately 17% of the 24-inch waterline extension and 12% of the 42-inch reclaimed water line to the Colorado River Project and the excess capacity will serve the community and other existing a