‘We’re Just Not Ready Today’: Corpus Christi City Staff Punts Cryptomine Discussion
By Beatz Alvarado, Julia Strong
An audit of the Industrial District Agreements (IDAs) for a cryptomining operation near the LyondellBasell plant on McKinzie Road will be conducted by a third party agency after three Corpus Christi City Council members requested public discussion on the matter.
District 2 councilwoman Sylvia Campos, District 3 councilman Eric Cantu and at-large councilwoman Carolyn Vaughn placed the item on the July 14 City Council agenda via a three-person memo dated June 30.
The cryptocurrency mine’s IDAs with the City of Corpus Christi came under scrutiny after news coverage exposed that they were poorly negotiated and are actively depriving city coffers of much needed revenue amid its “water crisis.”
Read more: Years After Mega Tax Break, Cryptomine Pays Less Than $8K to City of Corpus Christi
Read more: Bitcoin Mining Site Quietly Begins Pulling Water Amid Drought
No action was taken and little discussion delved into the details behind why cryptomine owners were only billed a fraction of what was owed and why one of the IDAs was stripped of the largest source of revenue for the City during renegotiations in 2024.
Most of Tuesday’s discussion centered on why staff came to the meeting unprepared despite the memo being submitted two weeks in advance of the meeting. City Attorney Miles Risley and City Manager Peter Zanoni were made aware of discrepancies in the agreements in February, according to texts and emails reviewed by Chisme Collective.
“This item is 100% defending our taxpayer,” said District 4 councilwoman Kaylynn Paxson. “It's worth at least two or three slides and some attention to it.”
The City’s Finance and Procurement Department, which is responsible for managing Payments in Lieu of Taxes (PILOT payments) for IDAs, wasn’t present at the meeting.
Jennifer Buxton, interim director of planning and economic development, was the sole representative present to answer council members’ questions.
“(Buxton) doesn’t have a presentation because we don’t have all the facts together but we will come to Council with the full performance audit soon and lay it out,” Zanoni said. “We will be ready; we’re just not ready today.”
Weaver, a Texas-based, national accounting firm, agreed to conduct a performance audit of the IDAs between the City and cryptomine owners. Performance audits evaluate whether programs, like the City’s IDA program, met its intended goals.
Buxton said Weaver will conduct the audit of the IDAs as part of the interim audit for the city’s annual comprehensive financial report, at no additional cost.
“They’re starting in August, and then we’ll be able to come back and give a presentation after they’re done,” she said.
During the meeting, Paxson suggested a snapshot audit of the about 80 IDAs between the City and corporate partners be conducted, and District 5 councilman Gil Hernandez suggested annual process audits for select IDAs as part of Weaver’s contract. A process audit differs from a performance audit, it focuses on how a process is performed rather than just the final result.
It’s unclear whether city staff will heed their suggestions in future talks with Weaver.