Welcome to Starbase, Texas. What’s next for Elon Musk’s rocket-building company town

A Starship booster at the Starbase site in March. (Reuters)
A Starship booster at the Starbase site in March. (Reuters)

Summary

SpaceX rocket builders voted overwhelmingly to incorporate the rocket complex as a municipality, according to early results.

A SpaceX booster at a launch site in March.

Starbase, Texas, Elon Musk’s new company town dedicated to huge rockets, has left the launchpad.

Polls closed Saturday at 8 p.m. ET following a vote on whether to incorporate a handful of SpaceX rocket facilities and housing near Brownsville, Texas, as a municipality called Starbase.

Shortly after voting ended, about 98% of 177 votes cast supported forming the town, according to unofficial results that local election supervisors posted online. Just under 300 voters were able to cast ballots for or against the incorporation, meaning the measure was poised to pass easily.

The lopsided result was expected. Eligible voters had to live within the proposed town’s boundaries, where SpaceX already owns almost all of the property. Most voters either work for the company or are tied to it through partners.

Located at the end of a potholed road regularly traversed by Teslas, the complex has grown alongside Musk’s ambitions—chiefly, developing a rocket that can land humans on Mars. It has drawn in SpaceX staff from other company sites and created thousands of new jobs in South Texas.

What happens next?

Remi Garza, the elections administrator for Cameron County, Texas, said in a recent interview that once all ballots are counted, county commissioners need to certify the election results before the town is officially on the books. After certification, the new municipality of Starbase could begin operations.

What will the town actually do?

SpaceX hasn’t said much about its plans for the town. One of its top executives in South Texas, Kathy Lueders, said in a letter last year that incorporating Starbase would help the company build up its workforce. Some tasks that the company handles right now would be better managed by a public entity, she said.

“We’ll probably be having more specific conversations on governing functions they’ll take on right away and where they’ll need some assistance," Eddie Treviño, Cameron County’s top elected official, said in a recent interview. Treviño expects the company to continue increasing its head count for Starbase.

Alan Bojorquez, a Texas attorney specializing in municipal issues, said towns and cities in the state typically focus on coming up with spending plans over the summer. “Whatever the goals and ambitions of the new city of Starbase are, the first thing they’re going to have to look at is what the budget is," he said.

What powers will Starbase have?

Texas law provides municipalities with a wide set of powers. Starbase could create zoning rules, raise revenue and hire staff to carry out town functions. State law doesn’t require towns to do much, though they must follow statutory provisions regarding open meetings, public records and more.

The town could gain other powers. Texas legislators have proposed a bill that would allow Starbase, as a town, to close a beach abutting its launch site at the complex during weekdays. Treviño, the county leader, and other area residents oppose that idea.

Starbase’s newly elected officials have ties to SpaceX. Bobby Peden, a SpaceX vice president, was elected mayor. Texas code has provisions regarding conflicts of interest for local officials dealing with companies from which they receive pay, or own equity.

What does the South Texas community think?

SpaceX, an economic force in the Rio Grande Valley, said last year it was employing around 3,400 staff and contractors at the Starbase site. Those jobs, along with the tourists visiting the area to watch launches, are part of why many local elected officials support the company.

Activists warn that Starbase’s rocket operations hurt the environment, and object to restricting access to the beach. Launches are noisy and shake nearby houses, according to locals. SpaceX has said it is committed to mitigating the impact of Starship and works closely with government agencies to do so.

Some residents living near Starbase fear incorporation will deliver more power to the company.

Remind me, what does SpaceX do right now at Starbase?

It is all about Starship. SpaceX is planning a mission to Mars with the roughly 400-foot-tall rocket and has won contracts from the National Aeronautics and Space Administration to use it on agency moon landings. At Starbase, the company builds boosters and spacecraft, and launches them.

SpaceX has conducted eight Starship flight tests. While the last couple ended in explosions, the company has been able to recapture the towering booster rocket back at its launchpad.

What about Musk’s connections to the site?

Musk for decades has been obsessed with sending crews to Mars, and making humanity a multiplanetary species. Starbase—where a sign trumpets “Gateway to Mars"—is a physical manifestation of that dream.

The SpaceX founder and chief executive has also lived at Starbase, according to a biography by Walter Isaacson. A few years ago, Musk picked a company-owned home at the site for his residence, the book said.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
more

topics

Read Next Story footLogo