Musk's SpaceX town in Texas warns residents they may lose right to 'continue using' their property
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.
The town, home to Elon Musk's SpaceX, is considering a new zoning ordinance and city-wide map.
The notice, sent to property owners in a proposed "Mixed Use District," would allow for "residential, office, retail, and small-scale service uses."
Starbase plans to host a public hearing on Monday, June 23, 2025, about the proposed new zoning and map for the town. The notice was signed by Kent Myers, a city administrator for Starbase and radiation test specialist at SpaceX according to his LinkedIn profile.
Representatives for Starbase and SpaceX did not respond to requests for further information on Thursday.
A "type-C municipal corporation," Starbase was officially formed earlier this month after Musk's aerospace and defense contractor prevailed in a local election. It is now run by officials who are SpaceX employees and former employees.
As of early this year, the population of Starbase stood around 500 people, with around 260 directly employed by SpaceX, the Texas Tribune reported. Most other residents of Starbase are relatives of SpaceX employees.
The company town includes the launch facility where SpaceX conducts test flights of its massive Starship rocket, and company-owned land covering a 1.6 square-mile area.
Starbase is holding its first city commission meeting on Thursday, two days after SpaceX conducted its ninth test flight of the massive Starship rocket from the Texas coast facility.
The rocket exploded during the test flight, marking a catastrophic loss and a third-consecutive setback for the aerospace and defense contractor. Following the incident, Musk, who also leads Tesla, focused on data and lessons to be learned from the explosions.
The FAA said there had been "no reports of public injury or damage to public property" on Wednesday.
The Starship system was developed to transport people and equipment around Earth, and to the Moon, and Musk envisions the rocket someday being used to colonize Mars.
Musk's rocket maker has taken in more than $20 billion in government contracts since 2008, and is poised to take in several billion dollars annually for years to come.
Establishing Starbase as a company town helps SpaceX attain nearly unfettered permission to build, test or launch from its industrial complex on the Texas Gulf Coast.
The town is still trying to win the ability to close a main road and beaches for launch activity during the week without seeking municipal or other authority.
Here's the text of the zoning memo sent to Starbase residents:
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