TEXAS — Residents of Starbase, Texas, have received official notices warning that they may forfeit the right to use their homes as currently permitted, according to a memo obtained by CNBC. The warning comes ahead of a public hearing on a proposed zoning ordinance and revised village map scheduled for June 23, 2025.
The zoning proposal would designate affected areas as a “Mixed-Use District,” allowing for limited residential, retail, office, and service operations. The notice was signed by Kent Myers, the village manager of Starbase and a radiation testing specialist at SpaceX, according to his LinkedIn profile.
SpaceX and Starbase officials have not responded to requests for comment.
Starbase, which was officially incorporated as a “municipal C corporation” earlier this month, is governed by current and former employees of Elon Musk’s SpaceX. The company’s massive Starship launch facility occupies a 4.1-square-kilometer area on the Texas Gulf Coast and has been the site of several rocket test flights.
According to the Texas Tribune, the population of Starbase earlier this year was around 500, with more than half employed by SpaceX. Many of the remaining residents are family members of SpaceX staff.
The zoning memo forms part of the legal requirements under Texas state law and has heightened tensions in the newly formed village. The reclassification could potentially allow SpaceX to secure broader permissions for testing and launching activities while limiting residents’ legal ability to challenge or opt out of the changes.
The town’s first commission meeting is set for Thursday, two days after SpaceX’s ninth Starship test flight, which ended in failure when the rocket exploded. The Federal Aviation Administration confirmed there were no injuries or public property damage.
Starbase officials are also seeking the authority to close local highways and beaches for launch operations without external approval. The reorganisation of the town as a business district is expected to streamline operations and support SpaceX’s long-term goals, including manned missions to the Moon and Mars. Since 2008, SpaceX has secured over $20 billion in government contracts.