<\/p>\n
Elon Musk listens to the speech of Chinese President Xi Jinping during a state dinner with President Donald Trump at the Great Hall of the People on Thursday May 14, 2026, in Beijing.\u00a0<\/p>\n
Mark Schiefelbein\/AP<\/p>\n
Residents of a largely rural county east of College Station\u00a0aren\u2019t wild about\u00a0Elon Musk\u2019s proposal to receive tax breaks<\/a> in exchange for building a massive computer chipmaking facility<\/a> there.<\/p>\n Many of them lined up this week to voice concerns and, in some cases, support for the semiconductor manufacturing and advanced fabrication facility being pitched by Musk\u2019s SpaceX. Dubbed Terafab, Musk says it would be the world\u2019s largest.<\/p>\n Article continues below this ad<\/p>\n Supporters say the investment, which could begin at $55 billion and more than double through later phases, is too good for Grimes County to pass up. Detractors, though, worry about the questionable environmental track record of Musk\u2019s businesses \u2014 and whether the huge space company getting set for what\u2019s likely to be the largest-ever initial public offering even needs the help.<\/p>\n \u201cI believe it would be immoral to give this company tax abatement when we have serious concerns about health issues and safety issues,\u201d county resident Jacqueline Ross told Grimes County commissioners.\u00a0<\/p>\n She was among more than a dozen who signed up to speak at a special meeting to discuss commercial and financial information the commissioners court received from SpaceX regarding its request. No details of the proposal have been made public.<\/p>\n Much of the meeting was conducted behind closed doors. But commissioners took public comment on the fabrication facility proposed for Gibbons Creek Reservoir and surrounding areas for a portion of the meeting.\u00a0<\/p>\n Article continues below this ad<\/p>\n Ross was among those who told commissioners the development is unwelcome given SpaceX\u2019s record of environmental and safety citations. She listed fines levied against SpaceX in recent years, including a 2024 fine of nearly $150,000<\/a> after SpaceX broke clean water laws and had a fuel spill at its South Texas launch site. Another federal fine was issued over a crane accident that occurred while the company was cleaning up debris from a rocket test explosion at Starbase. Ross also referenced a fine from Texas\u2019 environmental agency over SpaceX illegally discharging wastewater<\/a> into wetlands near its facilities.\u00a0\u00a0\u00a0<\/p>\n Like Ross, another county resident who spoke later in the meeting similarly cited state guidelines for tax abatements<\/a>, which note the tax breaks may not be granted if the plan would have a serious adverse effect on existing businesses or constitute a hazard to public safety, health or morals.\u00a0<\/p>\n \u201cWhat is more compelling, the hope of jobs that may or may not benefit our residents or the very real concern that a project of this size could affect the health of families who live nearby?\u201d she asked.\u00a0<\/p>\n At minimum, the area resident said, Grimes County should receive the same level of written protections, benefits, performance requirements and enforceable safeguards companies agree to in other Texas counties.\u00a0\u00a0<\/p>\n Article continues below this ad<\/p>\n Travis County agreement cited as example<\/p>\n In an interview ahead of Wednesday’s meeting, Nathan Jensen, a professor in the department of government at the University of Texas at Austin, used Travis County as an example of a county that crafts strong economic development agreements.\u00a0<\/p>\n In its recent annual review of its deal with Musk\u2019s Tesla Inc., for example, Travis County commissioners found the company failed to satisfy requirements including complete documentation of site safety, resulting in them a vote to withhold 9%<\/a> of the company\u2019s tax rebates for 2020, 2021 and 2022.\u00a0<\/p>\n<\/p>\n