SpaceX town in Texas warns residents of possible loss of property rights

Starbase, Texas, is proposing new zoning regulations that could impact residents' property rights. The changes aim to accommodate SpaceX's growth by allowing mixed-use development, potentially prioritizing commercial needs over current use.

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Starbase, Texas, has notified some residents that they might “lose the right to continue using” their property as they do today, according to a memo obtained by CNBC. In order to accommodate SpaceX's growing activities, the town, which is in Cameron County close to the Gulf Coast, is putting up a new zoning legislation and a detailed municipal plan.

A notification outlining proposals to allow a mix of "residential, office, retail, and small-scale service uses" in the region was given to property owners inside a proposed "Mixed Use District." The settlement, which is now just 1.6 square miles in size and largely acts as a hub for SpaceX's ambitious Starship rocket program, might undergo a transformation as a result of this change. By integrating commercial and service-oriented projects, the proposed zoning modifications may give SpaceX's operational requirements precedence over current residential usage.

On June 23, Starbase will have a public hearing over the town's proposed new zoning and map. According to ValleyCentral.com, Kent Myers, the Starbase municipal administrator who recently accepted the position, signed the notification.

For Musk's aerospace business, which has changed the region since setting up its launch site in 2014, the town's creation represents a major turning point. About 260 SpaceX personnel make up the anticipated 500 residents of Starbase as of early 2025; the majority of the other occupants are their family, according to the Texas Tribune.

This week, Starbase took its first official step as a municipality by holding its first city commission meeting. The conference, which took place shortly after the Starship test, focused on the town's twin identities as a SpaceX corporate stronghold and a residential neighborhood.

The proposed zoning changes could further align Starbase’s development with SpaceX’s long-term objectives, including plans to expand its launch facilities and support infrastructure.