Starbase, Texas, which is now a company town for Elon Musk’s SpaceX, has told some residents they might not be able to use their land as they have been. The notice is given before a June 23 public hearing on a new zoning ordinance and citywide zoning map.
A memo shared with CNBC revealed that property owners in the proposed “Mixed Use District” were told that the ordinance could change what they are allowed to do on their land. The district would be suitable for residential, office, retail, and small-scale service activities. The notice says that if the ordinance is approved, residents could no longer use their property for its current purpose.
The city commission of Starbase, which was formed this month by SpaceX employees, will hold the hearing at a temporary city hall in Brownsville. Kent Myers, the city’s administrator, signed the notice. SpaceX and the city have not commented on media questions.

Starbase is a special corporate municipality built around SpaceX’s large 1.6-square-mile launch site on the Texas Gulf Coast. Most of the 500 residents in the town are SpaceX employees or their families, and the town is the main location for Starship rocket development.
The first city commission meeting for Starbase was held this week, only two days after the ninth Starship test flight ended in another explosion, which is the third major incident for the program. Even though there was an accident, Musk said it was important to learn from it, and the FAA confirmed that no one was hurt and no property was damaged.
Since 2008, SpaceX has been awarded over $20 billion in government contracts, and the creation of Starbase is expected to make operations more efficient. The town wants to have the power to close roads and beaches when launches are happening, without needing permission from others.