Upzoned: A Strong Towns View of the New SpaceX Company Town

Podcast Title: Upzoned
Host/Author: Strong Towns
Episode: A Strong Towns View of the New SpaceX Company Town
Release Date: May 14, 2025

Introduction

In this episode of Upzoned, Abby Newsham, an urban planner based in Kansas City, engages in an insightful conversation with Edward Erfert, the Director of Community Action at Strong Towns. They delve deep into the recent developments surrounding SpaceX's initiative to establish a company town named Starbase in Boca Chica, Texas, as reported in a Guardian article by Nick Robbins.

The Emergence of Starbase: A Modern Company Town

Abby introduces the core topic: SpaceX employees have overwhelmingly voted to incorporate their unincorporated community in Boca Chica into an official municipality named Starbase. This move is designed to grant SpaceX greater localized control over land use, particularly concerning rocket launches and related logistics. However, this shift raises significant concerns reminiscent of historical company towns.

Edward Erfert provides a historical perspective on company towns, drawing parallels between Starbase and past industrial-era communities:

"All the mining towns that came about in West Virginia were controlled by the mining companies... You were locked into that system for life" ([03:37]).

He emphasizes the fragility of such systems, where economic, political, and social lives are entwined with a single employer, leading to vulnerabilities if the company faces downturns or shifts its focus.

Individual Autonomy and Societal Resilience

Abby raises critical questions about individual autonomy and the long-term sustainability of a town heavily reliant on one company:

"Tying where you live, your sense of community, everything to an employer seems kind of scary to me..." ([06:21]).

Edward concurs, highlighting historical issues where employees had limited mobility and were dependent on their employers for housing and other necessities. He warns of the dangers inherent in such dependencies, noting that modern workers rarely commit to a single company for their entire careers, thereby limiting their personal and economic mobility.

Infrastructure Control and Revenue Mechanisms

A significant aspect of Starbase's incorporation is SpaceX's retention of control over critical infrastructure. Edward compares this to master-planned communities and points out the strategic selection of land areas pivotal to SpaceX's operations, such as launch pads and fueling stations. This control extends to:

• Road Closures: Managing public road usage during rocket launches.
• Revenue Streams: Utilizing mechanisms like Tax Increment Financing (TIF) to generate revenue within the municipality.

Edward explains TIF's potential benefits for Starbase:

"Tax Increment Financing is the collection of the growth of property value off of a property over a certain time frame... It can be used within a specific area which is being generated" ([14:29]).

This approach allows Starbase to fund infrastructure and development projects internally, bypassing traditional municipal funding challenges.

Public Spaces and Environmental Concerns

The incorporation of Starbase has sparked debates over public access to areas like Boca Chica Beach. Abby underscores the tension between maintaining public spaces and SpaceX's operational needs:

"Public spaces remaining truly public... operations here of the company is going to be a barrier for people being able to use these spaces" ([20:08]).

Edward likens the situation to Cape Canaveral, where access is restricted due to federal and military controls, raising questions about the balance between corporate operations and public accessibility.

Zoning, Governance, and Conflict of Interest

One of the most pressing concerns revolves around governance within a company-controlled municipality. Abby and Edward discuss the potential for conflicts of interest, especially when company leadership assumes roles in city governance. Edward highlights the complexities involved:

"Running a municipality is different than running a business... they're dealing with constituents and the people ... who are outside the community that are going to want their say in this" ([35:55]).

The lack of traditional urban planning expertise among company executives could lead to challenges in managing zoning laws, public services, and community needs effectively.

Housing: Innovation Meets Practicality

Starbase's housing strategy showcases a mix of conventional homes and manufactured units, including Airstream-style houses and mobile homes. Abby observes the variety in housing types aimed at affordability and community aesthetics:

"They have houses of various sizes that are like conventional... but then you have like air streamers arranged in a courtyard" ([32:12]).

Edward notes the experimental nature of these housing solutions, driven by SpaceX's innovative culture. However, he raises concerns about the absence of multi-family housing options, which are crucial for diverse and resilient communities.

Future Implications and Sustainability

As Starbase transitions from a private development to an official municipality, questions loom over its long-term sustainability and adaptability. Edward reflects on the potential challenges:

"Making sure the roads are clear, making sure you have access with fire and police department... All the things that you don't think about until you get into city government" ([34:18]).

Abby adds that governance by committee, as seen in traditional municipalities, differs significantly from corporate decision-making processes. This shift could impact how effectively Starbase manages everyday civic responsibilities and responds to community needs.

Down Zone: Current Initiatives and Personal Updates

In the Down Zone segment, Edward shares exciting developments from Strong Towns:

"We are working on our second housing toolkit to help cities become housing ready... learning all of that, I hope to share that shortly" ([39:46]).

Abby mentions her upcoming attendance at the National Association of City Transportation Officials (NACTO) conference in Washington, D.C., expressing enthusiasm about networking and learning from transportation experts.

Conclusion

The episode concludes with Abby and Edward reflecting on the innovative yet challenging endeavor of creating a company town. They acknowledge the potential for Starbase to serve as a model for future developments, while also cautioning against the pitfalls observed in historical company towns. The conversation underscores the delicate balance between corporate control and community autonomy, highlighting the need for thoughtful urban planning and governance to ensure the resilience and well-being of such unique municipalities.

Notable Quotes:

• Edward Erfert at [03:37]: "All the mining towns that came about in West Virginia were controlled by the mining companies... You were locked into that system for life."

• Abby Newsham at [06:21]: "Tying where you live, your sense of community, everything to an employer seems kind of scary to me..."

• Edward Erfert at [14:29]: "Tax Increment Financing is the collection of the growth of property value off of a property over a certain time frame... It can be used within a specific area which is being generated."

• Abby Newsham at [20:08]: "Public spaces remaining truly public... operations here of the company is going to be a barrier for people being able to use these spaces."

• Edward Erfert at [35:55]: "Running a municipality is different than running a business... they're dealing with constituents and the people ... who are outside the community that are going to want their say in this."

This comprehensive discussion provides a nuanced examination of SpaceX's Starbase initiative, offering listeners valuable insights into the complexities of modern company towns and their implications for urban planning and community development.