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CITY OF GALVESTON. JULY 2013. GALVESTON PAST. First Post Office (1836) First Chapter of the Masonic Order (1840) First Law Firm west of the Mississippi River (1846) First Grocery Store (1851) First Use of Telegraph (1854) First Gas Lights (1856) First Trade Union (1866)

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galveston past
  • First Post Office (1836)
  • First Chapter of the Masonic Order (1840)
  • First Law Firm west of the Mississippi River (1846)
  • First Grocery Store (1851)
  • First Use of Telegraph (1854)
  • First Gas Lights (1856)
  • First Trade Union (1866)
  • First Cotton Exchange (1872)
  • First Electric Lights (1883)
  • First Drug Store (1867)- still in business
  • First Orphanage (1876)
  • First Medical College (1886)
  • First Golf Course (1898)
  • First Bakery (1838)
  • First Cotton Compress (1842)
  • First Cathedral (1847)
  • First Insurance Company (1854)
  • First Jewelry Store (1856)
  • First Hospital (1866)
  • First Opera House (1871)
  • First Telephone (1878)
  • First School for Nurses (1890)
  • First Country Club (1898)


Galveston is the site of many “FIRSTS” in the State of Texas which includes:

First Naval Base (1836)

First Military Company (1841)

First Roman Catholic Convent (1847)

First Railroad Locomotive (1852)

First Private Bank (1854)

First Real Estate Firm (1857)


A New Beginning

Since the founding of Galveston in 1839, the city has led with distinction and honor. The greatness of Galveston is the pride it takes in itself and it’s willingness to step forward when the need is great and the options few. The time is here and the need is now to take charge of Galveston’s destiny, making Galveston great once again.

  • Galveston as the choice for business and education, fostering entrepreneurship, R&D facilitated by Universities and job growth
  • Galveston as a modern well equipped US port, insuring it’s competiveness into the future
  • Galveston as the place to live, work and play, for young and old with a convenient and affordable lifestyle
  • Galveston as the place for visitors, with entertainment, dinning and accommodations to rival the best worldwide
  • Galveston as the city leading the way, with public services like health care, security, environmental and self sufficiency, including storm protection and 24 hour response

A New Beginning

  • Galveston - Opportunity
  • Galveston must decide it’s future by examining it’s needs and it’s resources, then
  • formulating a comprehensive business plan
  • The City should utilize it’s natural and physical resources, as part of a
  • coordinated plan to create an investment friendly environment
  • Establish a long term holistic plan to become self sufficient
  • Develop a system to attract private capital, for present and future stability
  • Institute a self-sustaining resource for water, sewer and power, thereby creating
  • a mechanism to finance growth without taxing inhabitants and businesses
  • Make Galveston a dynamic, forward thinking business friendly Community

Forecasted Potable Water and Export Power Revenue and Net Income

  • Combined Net Revenue $ 642,400,000
  • Combined Net Income $ 189,360,539

*Includes all rail, bridges, roads, support and storm infrastructure on Galveston and Pelican Island


Proposed First Phase

Develop and refurbish Port and Add Island Protection

New Cruise Ship Slips and Terminals

Revitalize Historic District

Revitalize Mixed Use

Possible expansion with Port of Houston

Dredge Spoils

Desalination and Cogeneration

Investment at Texas A&M and Add Island Protecion

Rail and Vehicle Bridges and rail expansion on Pelican Island



Galveston and Pelican Island Phase 1

Galveston / Pelican Island Improvements and additions, including Rail and Vehicular

Bridge with Desalination and Cogeneration Plant at a total investment of $ 4 billion

  • Infrastructure Improvementsand Additions $ 3.2 Billion
  • Building an Industrial Rail and Vehicle Bridge
  • Pelican Island Rail Expansion
  • Desalination and Cogeneration
  • Expand Galveston and Pelican Island Storm Protection
  • Create Galveston Island Self Sufficiency with Water, Sewer and Power
  • Galveston Improvements and Additions$ 800 Million
  • Revitalize Historic District
  • New Ship Slips and Terminals
  • Investment in Downtown, Texas A&M and UTMB
  • Develop and Refurbish Port on Pelican Island

Projected Increase in Water Spending for Region H

Area H will spend $3.88 Billion in 2013 and $11.46 Billion in 2060 for Water.

  • Assuming a price of $5 per thousand gallon in 2013 and an inflation rate of 1.5% . Water Rates - $5.00 per Thousand Gallon Gross:

Desalination Production to Galveston and Region H

Desalination / Cogeneration Site

Potable Water Production


Export Power Production to Galveston, the Grid and Region H

Desalination / Cogeneration Site

Export Power Production


Jobs and Opportunities

Jobs, Training and Retraining

Up to 100,000 permanent jobs created

  • The construction job creation in developing $4 billion of infrastructure over 7 years is significant
  • The workforce in supporting that development is generally equal to the direct jobs created
  • The long term jobs created are approximately 67,000 to 100,000 according to the Milken Institute, IMPLAN and ARRA
  • The training and retraining of trades and the curriculum adjustments for education this plan requires will prove to be a positive for Galveston and surrounding
  • University involvement with project details and the R&D that could be advanced and implemented will to be prove of significant import
  • Long term jobs will be associated with the future of Biomass/Biofuels/Biotech and the process’ and products derived along with export and logistics

Desalination and Cogeneration Facts

Desalination and Cogeneration have existed since the 1800’s and the size and scope

are ever expanding while construction and operating costs are coming down

  • Desalination has been used for thousands of years - Greek sailors boiled water to evaporate fresh water away from the salt and Romans used clay filters to trap salt.
  • Today’s sophisticated methods still generally use the concepts of distillation or filtration.
  • There are about 15,000 desalination plants around the world. The biggest plants are generally in areas with few fresh water resources or with large populations by seas and oceans, such as the Orient / Middle East, Asia / Asia Pacific, Asia Minor, Australia / New Zealand and North Africa / Africa.
  • The largest Desalination and Cogeneration plants are presently in Saudi Arabia, the UAE, Israel, and India

Desalination and Cogeneration Facts

  • Lower Operating Cost and Additional Revenues from Export Power are the Purpose and Design of Desalination and Cogeneration in Tandem
  • Desalination with Cogeneration systems—also called combined heat and power (CHP) systems are designed to generate both heat and power
  • The thermal energy can be used to generate heated water and steam production as well as for various types of process heat.
  • Reduces or eliminates transportation and distribution costs of fuel source or power source. Addition of boiler system or other heat storage medium further increases operating time and efficiency.
  • Thermal energy can be used to generate heating water and steam production, as well as for various types of process heat.

Comparable Desalination and Cogeneration Plants

1 - Estimated Completion 2015: 2- Estimated Completion 2018: 3 - Estimated Completion 2016



  • Implementation Plan
    • Create a non taxing Infrastructure Authority
    • Establish Board Members and governance, including State of Texas
    • Engage professional services; bankers, accountants, legal
    • Authority raises initial tranche of capital for Business Plan development and pre-construction planning
    • Engage additional professionals; engineers, architects, specialists
    • Institute business plan and construction programming for phase 1
    • Authority coordinates with relevant local, state and federal entities, including water, power, transportation, port, EPA, Corps of Engineers, etal.
    • Authority negotiates and finalizes Purchase Agreements for Water and Power
    • Authority devises and markets financial instrument via underwriters for Phase 1 capital requirements

Next Steps

  • Give the city manger and the city attorney the permission to work with Arthur Val Perkins of the firm Gardere Wynne Sewell.
  • Create a non taxing Infrastructure Authority and bring it back to the city council in 30 days for consideration.


  • If we fail to take advantage of this once-in-a-century opportunity, future generations will look back at us with a mix of disgust and anger. They will wonder how we let such a golden opportunity slip by and will think o us as “the idiot generation” And you know what? They will be right.
  • “Rising Interest Rates Will Soon Make Needed Infrastructure Repairs More Costly”
  • Barry Ritholtz
  • Washington Post July 12, 2013