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Space Businesses

SpaceX Tries Buying Out Homeowners Around Starhopper's Texas Launchpad (businessinsider.com) 132

SpaceX "built its experimental spaceport in and around Boca Chica Village, a decades-old community of about 20 elderly residents," reports Business Insider.

But now "SpaceX is trying to buy as much of Boca Chica Village as it can and move people out...following an accidental brush fire, public-safety notices warning of the possibility for explosions, and a push to have the Federal Aviation Administration approve orbital-class launches with larger rockets." "When SpaceX first identified Cameron County as a potential spaceport location, we did not anticipate that local residents would experience significant disruption from our presence," the letter said. "However, it has become clear that expansion of spaceflight activities as well as compliance with Federal Aviation Administration and other public safety regulations will make it increasingly more challenging to minimize disruption to residents of the Village... SpaceX is offering you three times the independently appraised fair market value of your property," the letter said. "The offer is good through two weeks from the date of this letter...."

For those who commit to a sale, SpaceX said it would cover closing and other real-estate costs. It also comes packaged with an additional perk. "SpaceX recognizes that your close proximity to its operations has offered a unique opportunity to experience at close-hand the development of what will be the world's most advanced rocket. In appreciation of your support, we will offer all residents of the Village who accept the purchase offer the opportunity to continue their connection with the development of Starship by extending an invitation to attend future private VIP launch viewing events that are unavailable to the public."

Homeowner Cheryl Stevens complained to CBS News that the company has encroached on their neighborhood. "They're behaving as if this is Cape Canaveral. And it's not. It's not a military base. It's just a regular neighborhood, and a public beach, and a state highway. And suddenly, because they're here, stop the presses. Everything has to change for SpaceX."

SpaceX issued the following statement to CBS News: "We are entering a new and exciting era in space exploration and Texas is playing an increasingly important role in our efforts to help make humanity multi-planetary.

"As we develop Starship -- the world's most advanced launch system ever -- we are listening and responding to our neighbors' concerns and are striving to minimize disruptions as much as possible. We are working closely with Cameron County to facilitate public safety and provide regular road and beach closure updates to the public through a telephone hotline and on Cameron County's website."
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SpaceX Tries Buying Out Homeowners Around Starhopper's Texas Launchpad

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  • by meerling ( 1487879 ) on Saturday September 21, 2019 @01:47PM (#59220818)
    They are acting like a company trying to get what it needs for it's future development.
    If it were a military base, which is a government thing, they'd just use Eminent Domain, take your land, give you some insufficient quantity of money, and move your ass out whether you wanted to go or not!
    • Yeah, 3X market value for the home plus paying fees does not sound like they are acting like Cape Canaveral.
    • It's an offer if you don't like it then say "no thank you" and get on with your life. If you are worried your neighbours will leave, go round and talk with them before deciding. This takes nothing away from you and just gives you an extra option. Please come and offer me three times my home value.
      • The community should come back with "find a nice beachfront plot of a similar size, build homes for us (including infrastructure) and we'll talk".
    • There is still a strong possibility that they can get eminent domain via "public needs" where they claim that added jobs and tax revenue provide benefit to the entire community.

      If they go this route it will likely come down to political pressure on local county or community planning boards to make the call

      In the past money has won

    • My "3x" question is how much the real estate values and appreciation have already been discounted by the nuisance of SpaceX. Often these "independent" values are low by 10%-30%-50% in the immediate market and ignore other long term potential for the long term holders.

      In any case, SpaceX has missed other details to motivate the owners and make sure that they feel whole -
      (1) a minor moving package
      (2) recognition that a sudden change of plans entails time and effort to shop and move
      (3) SpaceX might o
      • In most places the reason that some property values are "low" is that the property owner has been arguing for decades that their property has low value, to skip out on taxes. It is a risk they don't really think about.

        From what I've seen, even once they know it going to be taken they're still not smart enough to try to correct the value, because they choose instead the impossible fight to try to keep the property and in their fantasy world where they win that fight they don't want to pay full taxes afterwar

        • Great. All it takes is one property owner to tell Musk to go fuck himself and SpaceX is in the same predicament they'd be in if they all refused to sell.

          Hopefully they stick together and demand several million apiece. It'd still be cheaper for Elon and they all need to know that. There is no national need for this rich-person's vanity project.

          • by Kaenneth ( 82978 )

            odds of debris landing on 1 house is smaller than on 100.

            • These residents have already been warned that their windows might shatter during launches and to open them when told. A simple test also started a brushfire that threatened their properties just a few months ago. We aren't talking about random parts falling from the sky, although with Musk I'd say the odds of that happening are increased quite a bit over a NASA launch.

        • by mlyle ( 148697 )

          Property tax assessment value and fair market value are different in basically all jurisdictions.

      • by drnb ( 2434720 )

        My "3x" question is how much the real estate values and appreciation have already been discounted by the nuisance of SpaceX. Often these "independent" values are low by 10%-30%-50% in the immediate market and ignore other long term potential for the long term holders.

        No, they are getting quotes from the same appraisers the banks use for mortgage lending purposes. "Market Value" has nothing to do with what these people paid long ago, it is by definition about what its value is today on the open market.

        You seem to be referring to aberrations where there is some sort of bidding war on a property and people pay over market value.

        In any case, SpaceX has missed other details to motivate the owners and make sure that they feel whole - (1) a minor moving package (2) recognition that a sudden change of plans entails time and effort to shop and move (3) SpaceX might offer them some rent-free time extension too - just no complaints If they are that elderly, they won't want to move until its time for a nursing home. Why tie up 3-6 months moving in the last 2-3 years of independent living? Save the transition for one change.

        That is all outweighed by the extra 2X being paid. The economic arguments you make don't add up. The only argument that is plausible is that the

        • The market value of the property is meaningless, especially now that Musk has decided to build an experimental rocket launching base next door that routinely catches the neighborhood on fire. That kinda deminishes the market value don't you think? What matters is the cost of a replacement property and relocation costs. Times ten, because fuck Elon Musk and this kind of arrogance.

          • by drnb ( 2434720 )

            The market value of the property is meaningless, especially now that Musk has decided to build an experimental rocket launching base next door that routinely catches the neighborhood on fire. That kinda deminishes the market value don't you think?

            Local wildfires is not necessarily catching the neighborhood on fire. Plus SpaceX probably raised the market value when it announced plans to build the launch facility there. There are only a handful of properties and if there are a handful of people out there who want to be near SpaceX for some reason the market is not necessarily diminished. Its merely a different sort of person is drawn to the neighborhood.

        • by mlyle ( 148697 )

          it is by definition about what its value is today on the open market.

          Yes, but what he's saying is the value could be depressed because of SpaceX. So if SpaceX has lowered the price an immediate buyer would pay by 30%, then they offer triple that, they're really only getting 2x of what it would have been without SpaceX.

          • by drnb ( 2434720 )

            it is by definition about what its value is today on the open market.

            Yes, but what he's saying is the value could be depressed because of SpaceX. So if SpaceX has lowered the price an immediate buyer would pay by 30%, then they offer triple that, they're really only getting 2x of what it would have been without SpaceX.

            Has SpaceX lowered the market value? How much did value rise when SpaceX announced plans to build there? How much did the value depress because SpaceX might case a local wildfire? How does that net compare to pre-SpaceX plus inflation or plus price growth elsewhere in the county? Are there people who want to live near the SpaceX facility who would not be deterred by local wildfires? You have to know answers to these questions and more before claiming SpaceX crashed local prices.

    • Yup, anyone who doesn't want to take 3x the appraised value of their house, is plain stupid. With that kind of cash you can buy a new nicer house, have a moving company do all the work and still have lots of money left over. What's there to think about?

      • by Dunbal ( 464142 ) *
        Is plain stupid, or has some ulterior motive in mind, which will get thrown right back in their faces if they launch any sort of legal action against SpaceX in the future. This is a very smart move on SpaceX's part.
      • Or the appraised value is pretty low. And you can't get what you had with the "appraised value". Think going from an ugly but functional house on a half-acre to a small trailer in a trailer park. If they're lucky--trailers have skyrocketed in price.
  • This sort of thing happens all the time in much more mundane situations. People are free to say “no”.

    Unless there’s some proviso that lets SpaceX back out if they don’t get 100% buy-in. That could be very confusing and problematic, given the age of the residents. But there’s no indication of that in the story.

    • People are free to say âoenoâ.

      They can't say "no" to the overpressure events that could blow out all their windows. I'm supportive of SpaceX (see my other comment) but it's not quite so simple - they cannot have reasonably anticipated that kind of neighbor when building there.

      • You might want to read the Wikipedia article regarding Boca Chica Village. It only had six permanent residents even before SpaceX moved in; now there are four (in two households, so two married couples).

        https://en.m.wikipedia.org/wik... [wikipedia.org]

      • by Nkwe ( 604125 )

        People are free to say "no".

        They can't say "no" to the overpressure events that could blow out all their windows. I'm supportive of SpaceX (see my other comment) but it's not quite so simple - they cannot have reasonably anticipated that kind of neighbor when building there.

        That's a good point, it's not simple. It sounds like a fair offer to me. While people wouldn't have had a reason to anticipate the kinds of changes SpaceX is creating as a neighbor, people also wouldn't necessarily have a reason to anticipate changes in flight paths, construction of major freeways or other infrastructure such as power lines and pipelines, or other things that may be an inconvenience or diminish property values, yet these things do happen fairly regularly. As said, people can say "no", and t

      • People are free to say âoenoâ.

        They're free to try, anyways, but I doubt they'll succeed.

  • Make them an offer they (or the soon to be future heirs) can't refuse.

  • by Vandil X ( 636030 ) on Saturday September 21, 2019 @04:50PM (#59221418)
    I'm in my 40s. Still paying on a mortgage. If SpaceX offered me 3x the appraised value of my house, plus relocation expenses, and the VIP space launch stuff, I'd simple say "throw in a Model Y for the wife and you have a deal."

    And then, I get a new house. A fantastic car. A great story to tell my new neighbors and family. AND I get to watch multiple milestone Starship launches.

    I can just as easily tell new kids to get off my lawn at my new place.
    • Don't be greedy, if a company offers you 3x what your house is worth, you take the deal before they have time to change their mind.
      • by Ichijo ( 607641 )

        You're assuming a rational person. California's Prop 13 was written by people who weren't. "We can't make grandma, who's now a millionaire because her house is worth 10x what she paid for it, sell it and move just because she's on a fixed income and can't afford to pay the property tax!"

        • You're assuming a rational person. California's Prop 13 was written by people who weren't. "We can't make grandma, who's now a millionaire because her house is worth 10x what she paid for it, sell it and move just because she's on a fixed income and can't afford to pay the property tax!"

          There are so many easy solutions to that "problem". When there is a $1M+ asset involved these things are really easy because there is lots of value to work with. Reverse mortgages (or the self-managed equivalent), partial or complete sale to an investor with a lifetime residency clause, sale and relocation... there are lots and lots of options. A good financial manager should be able to sit down with Grandma for an hour or two and help her craft a solution that meets her goals. Some compromises will be

    • I'm in my 40s. Still paying on a mortgage. If SpaceX offered me 3x the appraised value of my house, plus relocation expenses, and the VIP space launch stuff, I'd simple say "throw in a Model Y for the wife and you have a deal."

      The letter did say something about the deal was trying to be fair to all involved and so demands for a new car would likely be tossed, because if you got a car then everyone would want a car. Maybe if everyone that got a letter came together to try to sweeten the deal with a car as part of the deal that might go through.

      Here's what I would ask instead, do you care if the house is left in habitable condition when I left? As in, could I strip the house of all the copper wiring and pipes? They are likely to

  • Reading this it reminds me of "The Old Prophet" scene from "For a Few Dollars More"
    https://www.youtube.com/watch?v=9mLu5jOUmws

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