STARBASE, Texas – The brand-new town of Starbase sits next to the SpaceX facility on Boca Chica Beach, a narrow sandbar on the southernmost tip of Texas, directly along the border.

The surrounding area has long been a sparse stretch of the Gulf Coast where residents from nearby Brownsville go to enjoy outdoorsy activities, whether it’s fishing, boating, or simply a day at the beach. Others own land here with the hopes of eventually building a home for their golden years or developing businesses. But ever since Elon Musk decided to place SpaceX’s headquarters and launching pads to conduct rocket tests, their plans have slowly eroded as a new town, Starbase, has been incorporated and built up around the facility.

When driving along Texas Highway 4 into Starbase, drivers immediately encounter Mr. Musk’s influence: a 9-foot bronze-plated bust in his likeness. The sculpture has become a symbol of the region transforming into what the locals refer to as “Musk Country.” The bust, which was commissioned by a French entrepreneur known only as “Louis,” was defaced in April, likely by irate residents or protestors. Instead of being repaired, a large pink band-aid was placed over the damage.

The shrine is one of the only sites you see as you drive along this two-lane road. For miles, the only other signs of SpaceX’s presence on the peninsula before hitting Starbase city limits are the countless potholes and road damage caused by the constant stream of trucks and heavy machinery that traverse the roadway daily.

Soon after, you can see the facility in the distance, growing larger as you head toward the Gulf of Mexico. A pair of massive towers where SpaceX’s Starship rockets are built lie at the end of the road, alongside dual launch pads—the same location where a rocket exploded just weeks ago—standing tall over the gulf.

Once you approach the main facility, you can see the earliest beginnings of this new community forming around it. Homes have already been built and occupied along a palm tree-lined avenue playfully named “Memes Street.” Modest ranch-style houses, including one for Musk himself when he’s in town, line the road. Residents walk or bike to work or hop in their cars to head back toward Brownsville or beyond. Amazingly, not every car parked along Memes Street is a Tesla.

This main boulevard begins at the foot of the production facility and ends near the water, where several services for Starbase residents have sprung up—including the Astropub, a watering hole for locals that boasts an outdoor biergarten with a stage for performances. Next door sits a multi-purpose community center called “The Hub,” which currently serves as a temporary city hall. Construction sites surround the entire complex, signaling Starbase’s rapid expansion since becoming an official town recognized by the state of Texas just over a month ago.

Its incorporation was the result of a vote by its residents, most of whom are SpaceX employees. Soon after, property owners and residents along Starbase’s city limits received a caveat from the newly installed city council – that the town of Starbase could take away their property rights as they rezone the area for the town’s further expansion.

Many were hoping to get answers on Monday during one of the first public meetings held by the city council but were left with nothing but more questions.

“I received a letter that basically said this was going to impact my property rights. That I could lose that right,” William Bruns, of Spicewood, who owns two property lots near one of the areas scheduled to be rezoned, told the New York Sun. “That brought my attention to their threat. I needed to be here to pay attention to what’s happening.”

“Unfortunately, they didn’t give me the answers I was looking for.”

The hearing, which was held in “The Hub,” comes a month after residents and property owners received the same letter as Mr. Bruns, in which Starbase officials informed them that they might “lose the right to continue using” their property due to the region’s rezoning.

“Our goal is to ensure that the zoning plan reflects the City’s vision for balanced growth, protecting critical economic drivers, ensuring public safety, and preserving green spaces,” a passage from the public memorandum signed by newly hired city administrator, Kent Myers, reads. “You are receiving this notice because you own the above-listed property that will be located in the ‘Mixed Use District’ and will be impacted if the zoning ordinance is approved.”

“The City is required by Texas law to notify you of the following: THE CITY OF STARBASE IS HOLDING A HEARING THAT WILL DETERMINE WHETHER YOU MAY LOSE THE RIGHT TO CONTINUE USING YOUR PROPERTY FOR ITS CURRENT USE.”

The hearing began with comments from the city council that addressed concerns about eminent domain before voting to approve rezoning, including expansion of the city through the purchase of lots offered by nearby landowners. Starbase city council maintained that the expansion was not a case of eminent domain.

“So, there were multiple comments that we received that referenced condemnation of property or eminent domain,” city attorney Andy Messer said during the public hearing. “That’s not what we are doing today.”

“This is to put an initial zoning category on a piece of property for use of that property in the future. It’s a distinct separate process.”

But those who attended the meeting after receiving the letter say that there’s nothing stopping Starbase and SpaceX from using eminent domain as city expansion continues, or other tactics like inverse condemnation, where a governmental entity (much like the City of Starbase) damages or decreases the value of private property without formally acquiring it through eminent domain.

“It’s what we call inverse condemnation that’s being attempted on the landowners,” Frederick Hoelke, a San Antonio-based attorney who is representing a group of property owners in pending legal action against Starbase, told The New York Sun.

“They tell them they can’t utilize the property and it’s essentially an unlawful taking of their property,” Mr. Hoelke said.

“You can take a look around, there’s a tremendous amount of investment, all of which is good, but being fair to people that were here beforehand is important.”

Officials for the city of Starbase did not immediately return requests for comment.

For those who have property along Boca Chica Beach and residents in the surrounding area, this was once a tranquil stretch of coastline widely enjoyed for its natural beauty. They claim Starbase’s development over the past four years has slowly eroded their way of life.

“It’s bullying,” said Mike Montes, who owns a ranch near Starbase. “This was a retirement community where a lot of people from out of state — what we call snowbirds — would have their summer camps here. People from Brownsville would come over to go camping, frolic in the sand dunes, or take day trips on boats. It was an area where people were free to come and go with no hassle.”

Montes adds that it’s plain to see those carefree days have ended and that the development will likely impact the environment negatively.

“It looks like they want to make it a techno-enclave,” he said, “a gated community for workers and space exploration enthusiasts. But eventually I think it will become what’s called a superfund site.”

Among the city council votes was the unanimous passage of the installation of several “controlled access points,” essentially making Starbase a gated community for employees. While the recent public hearing was the first time this motion was presented to the public, the access points have already been installed on the residential streets of Starbase. 

On Friday, Governor Greg Abbott signed a house bill into law that gives SpaceX the authority to shut down nearby beaches and  public roadways hours before a rocket launch.

“The question is, who gets to make the call and who is in the best position to have the public interest in mind in closing a public beach?” Democratic Rep. Rafael Anchía of Dallas, said during a recent debate on the bill.

“And I submit to you, it’s not the people in the company town that is effectively a wholly-owned subsidiary of SpaceX.”