Grimes County grants tax break to SpaceX for proposed facility

GRIMES COUNTY, Texas (KTRK) -- A deal between SpaceX and Grimes County just got much closer after commissioners approved, in a 4-1 vote, major tax breaks for the company if it builds a multi-billion-dollar chip-making facility.

According to the county, the project is valued at $55 billion.

County leaders say it would be built around the Gibbons Creek Reservoir in the eastern part of the county. But the idea is concerning and worrisome for some residents.

"I came here for the rural life, for the agriculture, to give my granddaughters an opportunity to live in a small community and not in an industrial and big city," one resident said during public comment.

That was just one of many residents who spoke at Tuesday's commissioners' meeting before the vote.

"If this were put to a vote, the vast majority of people would vote it down," another resident said.

While the majority of county commissioners voted in favor of both a reinvestment zone and a tax abatement, which means the company would not have to pay property taxes, Grimes County Judge Joe Fauth told ABC13 the community will still receive financial benefits from having a SpaceX facility.

"What we negotiated, we're going to get $20 million for a 35-year period, and that's guaranteed to us," Fauth said.

Precinct 2 Commissioner David Tullos was the only commissioner to vote against the proposal, saying there still needs to be more dialogue on both sides.

"I don't think that we've had an honest negotiation with SpaceX to this point to allow either the court or our constituency to be informed on what's at stake," Tullos said.

Fauth acknowledged many county residents have concerns, but believes the community will eventually see what he views as the long-term benefits.

"There's some real opportunity for economic development because with a big provider like that, a big industrial base, you're going to have a lot of other suppliers," Fauth said.