Less than a month after the Starbase launch site in Texas was officially recognized as a city by Elon Musk’s SpaceX, its residents received unexpected and disturbing news. The city administration sent a memorandum to property owners in the “mixed-use” zone that could dramatically change their lives.

New rules
The document, obtained by CNBC, states that the zone allows residential, office, and retail use of real estate. However, it was the public warning that attracted the most attention: “The new plan will determine whether you may be eligible to continue to use your property for its current purpose”.
This concise but complexly worded paragraph caused panic among residents – what does it mean in practice? Could people be evicted from their own homes? Will they lose the right to simply live there?

The memorandum only states that the zone is intended for different purposes, so some residential buildings may have to be converted into offices or shops. The only clear indication to the residents was a threat: they had to attend a public hearing on June 23 to learn about their future fate.
City for space expansion
This step was a logical continuation of Musk’s ambitious goal. Back in 2021, he first expressed the idea of creating a separate Starbase city. The dream came true in May of this year when 500 residents, mostly SpaceX employees and contractors, voted in favor of secession. The city’s territory is small – only 4.1 km² but its status gives SpaceX much more freedom of action.

Becoming a city gives SpaceX powerful tools to control the territory. The company has long been trying to secure the right to close public beaches and roads in the Boca Chica area for its launches, engine testing, and other operations. The city status potentially allows it to more easily bypass government regulatory procedures designed to protect the environment.
The price of progress is the environmental and community impact
The frequent launches of Falcon rockets and the development of Starship are already causing serious complaints. They disturb the peace of residents and negatively affect the unique wildlife around them, including local bird species. Recently, the US Environmental Protection Agency (EPA) imposed a fine of almost $150,000 on SpaceX for illegally discharging pollutants into Texas waterways without proper authorization.
SpaceX, for its part, assures that the new zoning plan is a step toward “balanced growth”. The memorandum states that the goal is to protect economic interests, public safety, and preserve green spaces. The company has indeed invested in the region, created jobs, and is even developing space tourism by offering launch observation.

However, the new zoning rules and ambiguous wording in the memorandum call into question Starbase’s priorities. Is it a real city for its residents, or is it turning into an industrial platform for SpaceX’s space ambitions?
These questions will be answered at the June hearing, as their fate now directly depends on the decision of the city administration, which is closely linked to their employer.
Earlier, we reported on how Elon Musk mocked environmentalists for a scandalous investigation.