Texas
What does SpaceX’s move to Texas really mean for the South Bay?
The news that SpaceX, the massive aerospace company with an equally vast headquarters in Hawthorne, is apparently departing the South Bay for a new kind of south, caused an immediate stir among other local aerospace startups looking to hire — but also left locals with more questions than answers about how the move will impact the local economy.
Mercurial billionaire and SpaceX founder Elon Musk announced the company’s move from Hawthorne to Texas on Tuesday, July 16, in a post on X, formerly Twitter, rather suddenly.
But despite specific details on the move, other space startups have already been making a drive to recruit SpaceX workers disillusioned by Musk’s plans, offering them perks and inclusive office cultures.
On X, for example, asteroid mining company Astroforge Inc. replied to Musk’s tweet announcing his plans by stating they are hiring and based in Seal Beach — about 25 miles from SpaceX’s current headquarters.
Musk said his reason to relocate because of frustration over a new law in California related to transgender children in public schools.
The decision was in response to California Gov. Gavin Newsom signing a new state law, which prohibits school districts from requiring staff to notify parents of their child’s gender identification change.
Musk, who has increasingly leaned into far-right conservative rhetoric in recent years, called the governor’s decision a “final straw.”
The CEO of French aerospace company Latitude, Stanislas Maximin, responded by calling on “SpaceX employees misaligned with these values and looking to join an inclusive and highly ambitious rocket company in a great living city near Paris.”
Latitude would cover the cost of moving, visas, health care and find work for a spouse, Maximin said.
But it’s unclear whether such moves will be necessary.
That’s because besides a couple of posts on X, Musk and SpaceX officials have yet to provide any substantial details about what the relocation will actually entail.
SpaceX’s Hawthorne headquarters, a 1-million-square-foot sprawling campus, is home to more than just upper level admin workers — it’s also a production facility for some of the company’s flagship rockets.
Musk and the company have not said whether the entire campus — or other SpaceX facilities in Southern California — would be shut down and moved.
It is possible that the company has already prepared for an extensive and complicated move like that, though. SpaceX, after all, has been building out Starbase — a large facility in South Texas where SpaceX builds and launches its massive Starship rocket system — over the past several years.
Company officials did not respond to requests for comment on both Tuesday and Wednesday —so it is still all together unclear whether that is the company’s actual plan.
Hawthorne city officials, late Tuesday, issued a statement seeming to back up the uncertain nature of the relocation.
“Hawthorne has learned that SpaceX, one of our valued businesses, may potentially relocate its headquarters,” Mayor Alex Vargas said. “While this move would represent a significant change for our community, we remain committed to supporting our local economy and fostering growth.”
SpaceX, according to a report about Hawthorne’s finances during the 2022-23 fiscal year, provides nearly 7,000 jobs — or about 16% of total employment — in the city.
The second largest employer in the city, according to the report, was the Hawthorne School District, with 1,029 and 606 employees, respectively; the next is an Amazon Fulfillment Center in third place.
SpaceX has long been the largest employer in Hawthorne, at least dating back to the 2015-2016 fiscal year, which was the first time Hawthorne included employment levels by company in its annual financial reports.
But it’s unclear whether SpaceX’s plan to relocate the company’s headquarters will include moving its entire facility and all employees to Texas.
“That’s an incredibly expensive decision to make,” Christopher Thornberg, the founding partner of Beacon Economics, said in a previous interview earlier this week. “(And) people who live here, live here for a reason — and you’re not going to convince a lot of these people to get up and move to Texas, simple as that.”
There’s also precedent for Musk companies leaving California to Texas — such as Tesla.
Few employees were compelled to move during that transition, and the car company still maintains a huge presence in the Bay Area, including a factory in Fremont that employs thousands of people.
But it’s not just Musk companies. When Toyota announced that it was planning to vacate its Torrance headquarters — also to move to Texas — in 2014, the city faced backlash from both state officials and residents for failing to keep the business, and about 3,000 jobs, in town.
But several years following the company’s official exit in 2017, the actual material impact on Torrance and the South Bay economies have been minimal at best.
The city’s revenues, officials said previously, were not seriously impacted by Toyota’s departure. Torrance was more impacted by the loss of the company as a sponsor of community events.
That’s likely because the South Bay economy — and Torrance’s in particular — is diverse, with various large malls, company headquarters and industries, as opposed to relying on one single major business.
It might be a different story for Hawthorne, though, should SpaceX completely pull out of the city.
“SpaceX has been an integral part of our community,” Vargas, the Hawthorne mayor, said, “contributing to our local economy and helping to establish Hawthorne as a hub of technological innovation.”
Hawthorne has done its fair share to persuade SpaceX to stay local.
In 2012, for example, the city approved a deal with SpaceX to cap its annual business license fees at $260,000 a year.
Those fees, typically, were calculated based on gross tax receipts — meaning the more revenue the company generated, the higher fees it would have to pay.
That deal, agreed upon through 2022, essentially allowed SpaceX to maintain a flat tax rate despite its continued growth.
City leaders, at the time, cited the deal as a way to incentivize SpaceX — which was already fielding offers to move to other states, including Texas and Florida — to stay in Hawthorne.
Hawthorne also agreed to reduce building and planning fees for SpaceX should the company decide to expand its local facilities by 75% of the normal cost.
The city also included a corporate citizenship clause in that economic development deal — which allowed the city to use the SpaceX logo in its own branding to promote community engagement with the company and vice versa.
It’s unclear whether that deal was re-approved by the Hawthorne City Council after it expired in 2022. The city did not respond to requests for comment on Wednesday.
But given Hawthorne’s seemingly strong reliance on SpaceX as a driver of the local economy — it’s possible the company’s departure could have more lasting impacts on the city.
Long Beach, for example, is still recovering from the shut down of Boeing’s C-17 Globemaster production facility, which shut down after the Department of Defense terminated its contract for the aircraft in 2015.
The closure of the facility, according to a 2021 city report, resulted in the loss of about 1,158 direct jobs and another 3,781 jobs in the related supply chain.
Since the last C-17 left Long Beach in 2015, the city has spent years figuring out a plan to redevelop the area, an approximate three-mile corridor bordering the Long Beach Airport.
The Long Beach City Council, in 2021, finally approved a finished version of the Globemaster Specific Corridor Plan — a nearly 200-page document that will guide the area’s redevelopment into a “21st Century employment district,” according to the city.
But even with the economic crater left in the absence of Boeing’s Long Beach presence, the city’s aerospace industry managed to survive with the launch of Virgin Orbit in 2017 — which spurred several other space companies to plant their roots in Long Beach, including Rocket Lab and Vast Space — despite Virgin’s own bankruptcy delivering another blow to the city last year.
But for Hawthorne, time will tell how SpaceX’s departure will change the city’s economy, job market, and regional importance.
“Despite this potential move, Hawthorne remains resilient and optimistic about the future,” Vargas said. “The city is dedicated to attracting new businesses, supporting existing ones, and continuing to foster an environment of innovation and opportunity.”
Bloomberg News contributed to this report.
Originally Published:
Texas
Texas needs at least $174 billion to avoid water crisis, state says
AUSTIN (Texas Tribune) — Texas communities will need to spend $174 billion in the next 50 years to avert a severe water crisis, a new state analysis revealed Thursday. That’s more than double the $80 billion projected four years ago, when the Texas Water Development Board last passed a state water plan.
The three-member board presiding over the agency authorized the highly anticipated draft blueprint Thursday, the first administrative step toward adopting the water development board’s plans for the next 50 years. The plan, released every five years, encompasses the projects that 16 regional water planning groups in Texas said are the most urgent, water development board officials said.
The board’s latest estimates come as the state’s water supply faces numerous threats. Growing communities across Texas are scrambling to secure water, keep up with construction costs and cope with a yearslong drought. This week, Corpus Christi officials said the city may be just months away from declaring a water emergency. Meanwhile, other rural cities by the Coastal Bend are rapidly drilling wells to avoid a crisis. Residents in North Texas have also been bracing for groundwater shortages.
In an effort to restrain the crisis, lawmakers last year called an election in which voters approved a $20 billion boost for communities to use on water-related expenses. The water development board’s estimate shows that what lawmakers proposed on the ballot falls dramatically short of the needed cash, experts said.
“What this number tells me at the end of the day is if we don’t get serious about (funding water projects), there are going to be serious consequences for Texas,” said Perry Fowler, executive director of the Texas Water Infrastructure Network. “Even with the billion-dollar-a-year plan kicking in, it’s not going to be enough to offset the costs of the projects that are going to have to be executed.”
The new estimate accounts for 3,000 projects, from regional infrastructure upgrades to smaller endeavors such as drilling new water wells. Texas’ water supplies are expected to drop by roughly 10% between 2030 and 2080, according to the water plan. In that same time frame, the maximum amount of water communities can draw is also expected to decline by 9%.
The 80-page plan notes approximately 6,700 recommended strategies that would add water to the state’s dwindling portfolio. The recommendations — which are not accounted for in the cost — include developing new supplies from aquifer storage and recovery, brackish groundwater, desalination and recycled water. It also calls for water conservation.
The report suggested that if Texas does not implement the plans and recommendations, the state is one severe drought away from an estimated $91 billion in economic damages in 2030.
The state’s plan attributes a variety of reasons for the bigger price tag, such as higher costs of construction due to inflation, impacts of the COVID-19 pandemic on supply chains, and a growing backlog of water supply projects.
“There’s a plan that can meet our needs,” said Matt Nelson, deputy executive administrator for the Office of Planning at the water development board, adding that they take their cues from the regional planning groups. “These are local projects that folks need to implement; they’re needed regardless of how they’re funded. It’s important to remember these are not top-down projects or state projects.”
Experts told The Texas Tribune that the board’s estimate is only a fraction of what Texas communities will need to ensure they have water in 50 years’ time, saying growth and development are outpacing the state’s ability to keep up.
“This is a bigger water plan in terms of volume strategies and capital costs compared to anything we’ve ever seen before,” said Jeremy Mazur, the director of infrastructure and natural resources policy at think tank Texas 2036.
Mazur suggested that the $174 billion only covers water supply projects and does not account for updating aging infrastructure, adding that the actual price could amount to a quarter of a trillion dollars.
“There’s a substantial magnitude with regard to the capital investment needed to both fix our aging and current systems and potentially develop the water infrastructure, water supply projects that we need.“
The report largely confirmed what many water experts have warned regarding threats to the state’s water supply, said Sarah Kirkle, director of policy at the Texas Water Association.
“Population growth, extreme weather, and economic development needs are all increasing demands on our infrastructure, and the state is going to need more water, sooner,” Kirkle said. “This is all while water projects are becoming more costly and complex because the easiest and cheapest local projects have already been developed.”
Fowler, with the infrastructure network, said he expects the Texas Legislature to take up the issue next year, when lawmakers meet for the 90th legislative session. He said the state should take a bigger role in ensuring that communities can afford their respective water projects.
“It’s going to have to be a top-down priority, there’s no way around it,” he said. “The challenges are so immense that it’s going to take all hands on deck.”
Texas residents have until the end of May to comment on the proposal. Water development board officials must adopt it by January 2027.
Alejandra Martinez contributed to this story.
This article originally appeared in The Texas Tribune at www.texastribune.org. The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans – and engages with them – about public policy, politics, government and statewide issues.
Texas
Co‑worker confesses to killing missing North Texas man and stealing his car, police say
A North Texas man reported missing earlier this week was found dead Friday, and police say a co‑worker has confessed to fatally shooting him and stealing his car.
The suspect, Gregory D. Lewis, 34, remains in custody and faces a forthcoming capital murder charge, according to the Fort Worth Police Department.
Lewis is accused of killing 31‑year‑old Thomas King, who had been last seen in his Taco Casa work uniform. King was reported missing on Tuesday after failing to return home Monday from the fast‑food restaurant in the 1100 block of Bridgewood Drive.
Car found at Arlington motel
Police said King’s car was found at the Quality Inn on I‑20 in Arlington, and surveillance video showed Lewis arriving in King’s vehicle shortly after King left work.
Detectives identified the man in the video and arrested him on unrelated charges.
Body discovered on Fort Worth’s East Side
King’s body was located on Friday in an open field on Fort Worth’s East Side, authorities said.
According to police, Lewis confessed to shooting the victim and stealing his car.
Medical examiner review pending
The Tarrant County Medical Examiner will determine the cause of death.
CBS News Texas has reached out to Taco Casa for comment.
Texas
Exclusive | Mexican mayor urged relatives in US to vote for Texas Dem for Congress who would ‘take care’ of their city
WASHINGTON — A Mexican mayor earlier this month urged her constituents to get their relatives in Texas to vote for House Democratic candidate Bobby Pulido because he would “take care” of their city if elected to Congress.
“We need to get out the vote for him,” said Patricia Frinee Cantú Garza, mayor of General Bravo in Nuevo León, less than two hours from the US border, in a recent Spanish-speaking Facebook reel,which The Post reviewed and translated.
“Talk to your families in the United States. Make sure they go vote,” Garza added, noting that she would be presenting the keys to the city to Pulido, a two-time Latin Grammy winner, on April 3.
“When he becomes a congressman,” she also said, “we want him to take care of Bravo.”
The city ceremony celebrating Pulido in General Bravo never received enough funding and was cancelled, the Mexican outlet El Norte reported.
Pulido has headlined concerts in General Bravo as recently as November 2023. Local officials promoted the show and the current mayor and her husband, then-mayor Edgar Cantu Fernandez, appeared.
“Bobby doesn’t know the mayor and has never met her,” a Pulido campaign spokesperson said in a statement. “He declined the invitation, didn’t attend the event, and isn’t responsible for unsolicited comments made by other people.”
Bradley Smith, a former chairman of the Federal Election Commission, said the statements wouldn’t pose legal or ethical issues for Pulido — but that the remarks may have a political cost, given the focus on foreign involvement in US elections in recent years.
“If you were making financial contributions, that would be a different thing, but just to exhort people to vote,” Smith said, “I don’t think that’s going to be a problem for them.”
Jessica Furst Johnson, a partner at the Republican-aligned campaign finance and election law firm Lex Politica, noted that event appeared to function as an in-kind contribution to Pulido’s campaign but it would be difficult to determine without “more details.”
Congressional Republicans have thus far failed to pass a bill this session aimed at beefing up identification requirements for voters when registering, though many have said laws as currently written are too lax and could lead to non-citizens casting ballots.
State investigations and audits have shown in recent years that thousands of non-citizens ended up being registered, but few have ever illegally voted. Those who have are federally prosecuted.
Pulido is challenging incumbent GOP Rep. Monica De La Cruz in the Texas district this November and has faced questions from the press about his ties to Mexico, where he has said he maintains a home for parts of the year.
The Latino music star admitted to splitting time with his family between there and Texas just two years before launching his campaign, telling a YouTube show in a 2023 interview that he’s a “summer Mexican” but “winter Texan.”
“We live on the border,” he has also said. “My wife and I have a house in Mexico. So, we travel there, and we spend time over there.”
There was no indication of a current mortgage on a property either there or in the US, according to financial disclosures that Pulido filed April 15 with the House. Those filings also revealed he holds a checking account at a Mexican bank.
“Bobby lives in his family home in Edinburg, Texas, where he was born, raised, and is raising his own family,” the Pulido campaign rep noted. “He is in complete compliance with all House disclosure rules — the property you are referencing is not his primary residence so is not required to be listed.”
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