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Business of Engineering
Blog SpaceX wants to buy out residents of small Texas community
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  • Author Author: Catwell
  • Date Created: 27 Sep 2019 6:50 PM Date Created
  • Views 792 views
  • Likes 4 likes
  • Comments 2 comments
  • business of engineering
  • town
  • elon musk
  • cabeatwell
  • spacex
  • business
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SpaceX wants to buy out residents of small Texas community

Catwell
Catwell
27 Sep 2019

image

SpaceX launching its Starhooper rocket prototype (Image credit: SpaceX)

 

Elon Musk’s SpaceX project has equal amounts of support and disdain from critics and the general public. But residents in a small Texas community may have even more reason to come out against the initiative. According to a new report, SpaceX wants to buy out properties of the residents in Boca Chica Village, which is only a few miles away from its Starhopper launch site.

 

Residents of the community reported to Business Insider that they received buyout offer letters earlier this week. According to the letter, SpaceX is offering residents “three times the independently appraised fair market value for your property.” Residents only have two weeks to respond to the offer. To sweeten the deal, SpaceX is also offering residents who accept the offer VIP access to a future launch event that’s not open to the public.

 

So why do they want to buy out residents? The decision comes after an accidental brush fire and warnings of explosions in the launching region." When SpaceX first identified Cameron County as a potential spaceport location, we did not anticipate that local residents would experience significant disruption from our presence," the letter said. "However, it has become clear that expansion of spaceflight activities as well as compliance with Federal Aviation Administration and other public safety regulations will make it increasingly more challenging to minimize disruption to residents of the Village."

 

Residents who spoke with Business Insider stated they have no interest in the deal and do not plan on accepting the buyout. One resident, Maria Pointer, generally supports SpaceX and its work but has no interest in the offer saying that the company does not understand that most residents cannot afford to move, even with SpaceX's offer to triple property values.

 

"They need to understand that most of this community has very limited income," she said. "We want to move on, just give us what we need to move on. I'm not going to go to a trailer or an apartment. I gave my life to this property. I gave it everything I had. Nobody else wanted to tame it."

 

So far, SpaceX has not commented on the situation. It’s understandable why residents refuse to accept SpaceX’s offer. There are several past examples of one company buying out a town that had disastrous results. Companies like Disney, the American Cast Iron Pipe Company, U.S. Steel, bought and built towns for their workers, but often faced problems related to pollution, the cost of living, and regulation. With this in mind, you have to question how SpaceX’s plan will work. And what’s their next move if residents refuse to move? Looks like we’ll find out at the end of the month.

 

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Top Comments

  • dubbie
    dubbie over 6 years ago +1
    I thought it was an interesting idea, especially getting a free view of a launch. I had recently been discussing something similar with friends, as to how much we might need (from a developer) to get us…
  • dubbie
    dubbie over 6 years ago

    I thought it was an interesting idea, especially getting a free view of a launch. I had recently been discussing something similar with friends, as to how much we might need (from a developer) to get us to move from our houses. For me if it was four times my house price I would be interested (but then I've toyed with the idea of moving anyway so it's not such a shocker) but I live in a high cost area so four times my house would enable me to move to a manor house in the country, with maybe a Tesla on the side! I don't think three times would do it, but it's not that far away.

     

    Dubbie

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  • clem57
    clem57 over 6 years ago

    Jeff Bezos doe not understand people! What a shocker...image

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