On the cusp of history: a small Texas city adapts to life with Elon Musk and SpaceX


Willy Lowry
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On a hot, sticky morning, Bobby Lerma wades through dusty, ankle-length grass to reach the pink stucco mausoleum that sits on his family ranch outside of Brownsville, Texas.

“That’s my dad up there,” says Mr Lerma, pointing to a white marble engraving on the wall. “Then we have my mom, who is over here on top, and that’s her brother, and then my late wife is over there, so we’re full.”

Well, not quite. The 64-year-old retired municipal judge and lawyer says he intends to be buried next to his kin on the property his mother’s family has owned since the start of the American Civil war in 1861.

Quiet south Texas town adapts to life with Elon Musk and SpaceX

The only concern is that, 11 kilometres from Mr Lerma's sprawling 485-hectare ranch, the world’s richest man, Elon Musk, has built a Jetson-like space facility called Starbase, which has transformed the tranquil area into a bustling hive of rocket scientists and engineers.

They are working on building the largest rocket ever created, the 120-metre-tall Starship, a reusable craft that Mr Musk hopes will one day be able to carry equipment and people on missions to the Moon and Mars.

Starbase rises above a pristine wildlife refuge and abuts one of southern Texas’s last remaining public beaches.

Driving along Texas State Highway 4, the shimmering futuristic rockets loom over an expanse of relatively untouched land, appearing like an alien aberration.

Beneath them in the surrounding wildlife refuge, hundreds of birds and insects buzz through the air only a few kilometres from where the Rio Grande meets the Gulf of Mexico.

When SpaceX launches its powerful rockets, the company has to close down Highway 4 - the only road leading to Mr Lerma's property and Boca Chica Beach.

“We have trouble getting home, because every time they want to do something, the road gets closed and the beach gets closed,” Mr Lerma told The National.

Under Texas state law, public beach access is a constitutional right. But in 2013, the state's legislature amended the law to allow for closures during SpaceX flight operations.

A 2014 agreement between SpaceX and the Federal Aviation Authority (FAA) stated that the company must limit road closures to 180 hours per year, spread out over 12 launches.

But many residents complain that SpaceX has far exceeded that original agreement.

Beyond the nuisance of road closures, there are environmental concerns as well.

“Just from that land being developed, we've already seen harsh declines in different bird populations," said Emma Guevara, an organiser with the Sierra Club in Brownsville, who blames the deaths of ocelots, a type of wild cat that only lives in two parts of Texas, on SpaceX's activities.

Along with other environmental groups, the Sierra Club has filed a lawsuit against the Texas General Land Office and Cameron County, where Brownsville and Boca Chica are located, over road closures and restricted access to the beach.

A recent environmental assessment report conducted by the FAA found that SpaceX had to make 75 adjustments to mitigate its environmental impact to move forward with the Starship programme.

In addition, the assessment called for the company to limit weekend road closures to five per year and said SpaceX should not restrict beach access during 18 federal and state holidays.

SpaceX did not respond to repeated requests for comment. So far, their only public comment on the FAA report has come in the form of a tweet.

“One step closer to the first orbital flight test of Starship,” the company said.

Why Boca Chica?

Boca Chica sits in the southernmost corner of Texas near the gulf of the Rio Grande, a few kilometres east of the city of Brownsville and the US-Mexico border.

The very remoteness that makes it attractive to local residents and visitors alike made it an ideal location for the SpaceX launch site.

“It’s always possible that something goes wrong and so you want to have a good clear area,” said Mr Musk at a SpaceX event in February 2022. “You want several miles around the launch site unpopulated or at least clearable.”

It is also the farthest southern point in the continental US outside of Florida, which means it's close to the equator, making it easier for rockets to reach orbit.

Texas also offered a hospitable business environment for the billionaire entrepreneur to build and base one of the world’s largest private space companies.

In 2014, Rick Perry, then governor of Texas, offered more than $15 million in incentives for Mr Musk to set up shop in Boca Chica.

"SpaceX is excited to expand our work in Texas with the world's first commercial launch complex designed specifically for orbital missions," Mr Musk said in a statement at the time.

In the years since, Mr Musk has found an agreeable partner in the state, choosing not only to move SpaceX there, but his electric car company Tesla as well.

“I think Texas has the right amount of rules and regulations,” Mr Musk joked to an audience back in February.

Mr Musk has even made Boca Chica his home base, reportedly living in a bungalow worth only $50,000.

Since SpaceX first arrived in Boca Chica in 2014, the company has been buying up land at a ravenous pace in hopes of creating its own Starbase city.

It is easy to spot the differences between Starbase employees' homes and those that belong to locals unwilling to sell. The first clue is often the Tesla parked in the driveway.

A city on the rise

About 1,600 people work at SpaceX in Boca Chica, which has helped to vastly improve the area's economy.

Brownsville, the nearby city of 188,000, has long been considered one of America’s most impoverished.

The 2020 US Census revealed that the city had a median household income of $40,924, compared to a median income of $67,521 across the US. More than one quarter of the city's residents live in poverty.

The frontier city, which borders Matamoros, Mexico, is most often associated with immigration issues along the southern US border, but that narrative has started to change with the arrival of SpaceX.

The city has an abundance of 19th century historical buildings in various states of disrepair. The years of economic downturn are evident in the hardscrabble streets and dilapidated facades.

But a revitalisation project partially funded by Mr Musk has helped to restore a stretch of the Brownsville city centre to its former glory.

Hip restaurants and bars line several blocks and offer upscale cuisine to the city’s newest residents and SpaceX employees.

At Terra's, a popular new eatery on Washington Street, diners chow down on $18 tacos in a cavernous, exposed-brick dining hall. It is a scene straight out of New York City or Austin, Texas, a city often considered one of America’s hippest.

“[SpaceX] has put us on the map in terms of our potential and it provides just a lot of hope and aspiration,'' said John Cowen, a Brownsville city commissioner. “We're at the centre of innovation now.”

But SpaceX has also sent Brownsville’s house prices soaring.

The median house price as of April 2022 was $239,000. That’s almost $100,000 more than it was in April of 2019, website Realtor.com reported.

Mr Lerma said SpaceX approached him to see if he would be open to selling his property. He immediately declined.

"It's not for sale. No, it means too much to the family," he said.

Driving through a new subdivision on the outskirts of Brownsville, Craig Grove, a local real estate agent, pointed out homes he had recently sold.

“I sold that one right there last year for $329,000,” he said, pointing to a large home with a two-car garage.

Mr Grove, who considers himself the city’s biggest cheerleader, believes SpaceX has offered a much-needed injection of capital and hope into Brownsville.

“There's definitely been a bump - it's something that we never thought we would see, these people coming from California, Seattle, Denver, some parts of the East Coast coming to work at SpaceX, and these high-tech jobs, you know, specialty welding, computer programming, robotics, all these kinds of things,” he said.

Mr Grove even created a subsidiary of his main business to cater specifically to SpaceX employees called Starbase Realty.

He said SpaceX employees tend to buy three- to four-bedroom homes in newer developments that sell for between $200,000 and $300,000.

Those prices are a far cry from what they would pay in Los Angeles or Seattle, he explained.

“It's historically way more affordable,” he told The National. “And when you're looking at it from the perspective of Los Angeles, or these other big metros to Brownsville, it's crazy.”

The influx of new wealthier residents in a city that has a large population that lives on the margins of poverty has upset some locals.

“We’re seeing overcrowding in the city,” said Ms Guevara, the Sierra Club organiser.

“We're having a real housing crisis; it's really really difficult to find affordable housing or even to find housing in general.”

While Mr Musk has brought in a great deal of money, excitement and business to Brownsville - winning him the support of many local politicians - the same cannot be said of the whole community.

On a hot June night, a middle-aged man wearing a white sleeveless T-shirt, walks by a large mural of Mr Musk that adorns a building in Brownsville and raised his middle finger at the billionaire.

But Mr Cowen, the city commissioner, was adamant that the city was in a much better place now that Mr Musk is a nearby resident.

“Elon provides a better future for everyone," he said.

Mr Lerma was less diplomatic about Mr Musk's presence in the area, criticising local politicians for “worshipping the altar of King Elon".

While he admitted there could be benefits to having Starbase as part of the community, he worried about its influence going unchecked.

“I'm not in the way of progress - progress is here,” he said.

“Maybe one of my kids might get a job at SpaceX. But will my kid not be able to go to the beach one day?”

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Best Academy: Ajax and Benfica

Best Agent: Jorge Mendes

Best Club : Liverpool   

 Best Coach: Jurgen Klopp (Liverpool)  

 Best Goalkeeper: Alisson Becker

 Best Men’s Player: Cristiano Ronaldo

 Best Partnership of the Year Award by SportBusiness: Manchester City and SAP

 Best Referee: Stephanie Frappart

Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)

Best Sporting Director: Andrea Berta (Atletico Madrid)

Best Women's Player:  Lucy Bronze

Best Young Arab Player: Achraf Hakimi

 Kooora – Best Arab Club: Al Hilal (Saudi Arabia)

 Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)

 Player Career Award: Miralem Pjanic and Ryan Giggs

UAE currency: the story behind the money in your pockets
RESULT

Manchester United 2 Tottenham Hotspur 1
Man United: Sanchez (24' ), Herrera (62')
Spurs: Alli (11')

IF YOU GO
 
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
 
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info

 Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.

How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal. 

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.” 

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

Army of the Dead

Director: Zack Snyder

Stars: Dave Bautista, Ella Purnell, Omari Hardwick, Ana de la Reguera

Three stars

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

Updated: June 29, 2022, 12:59 PM`