Posted on 08/04/2014 12:42:01 PM PDT by Professional Engineer
Texas is offering more than $15 million in incentives to bring SpaceX's commercial rocket launch facility and 300 jobs to the Brownsville area.
Gov. Rick Perry announced the incentive package Monday for the project that is expected to bring $85 million in capital investment to the state.
"Texas has been on the forefront of our nation's space exploration efforts for decades so it is fitting that SpaceX has chosen our state as they expand the frontiers of commercial space flight," Perry said in a statement. "In addition to growing the aerospace industry in Texas, SpaceX's facility will provide myriad opportunities for STEM education in South Texas, and inspire a new generation of Texas engineers and innovators." See Also
Elon Musk expects SpaceX launch pad on Texas coast to be 'active in a couple of years' One small step for SpaceX: Proposed Texas spaceport site clears FAA hurdle
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Most of the incentive money — $13 million — will come from a special state fund designed to build the infrastructure for projects such as SpaceX. An additional $2.3 million will flow from the Texas Enterprise Fund, a deal-closing pool of money aimed at attracting new business.
The incentives are contingent on SpaceX's approval of local agreements and securing required permits. SpaceX last week applied for several commercial building permits at Boca Chica, a beach surrounded by wildlife areas about 20 miles east of Brownsville.
The Texas Enterprise Fund has funneled more than $61 million in incentives to lure companies to the Lone Star State so far this year.
Texas and SpaceX have been discussing the lucrative project since 2011, working closely with Musk as the company sought FAA clearance and other regulatory approvals.
SpaceX designs, manufactures and launches advanced rockets and satellites and is the only private company ever to return a spacecraft from low-Earth orbit.
It's also the first private company to attach a spacecraft to the International Space Station, exchange cargo payloads and return safely to Earth.
Perry's office described that accomplishment as a "technologically challenging feat previously only accomplished by government space programs."
SpaceX now has about 250 employees working at a rocket development facility in McGregor, Texas. It has proposed as many as 12 launch operations a year through at least 2025, which each carrying commercial satellites or experimental payloads. SpaceX reportedly has nearly 50 launches planned, representing about $5 billion in contracts.
Musk said in a statement that he is excited to expand SpaceX's work in Texas.
"We appreciate the support of Gov. Perry and numerous other federal, state and local officials who have partnered with us to make this vision a reality," he said. "In addition to creating hundreds of high tech jobs for the Texas workforce, this site will inspire students, expand the supplier base and attract tourists to the south Texas area."
Texas has a long history with public and private spaceflight. NASA's Johnson Space Center served as a hub for America's space program from the early Gemini, Apollo and Skylab projects to today's space shuttle and International Space Station programs.
The state also was the launch site for one of the first privately funded rockets to reach space, the Conestoga 1 in 1982.
Brownsville Mayor Tony Martinez described the SpaceX decision as a "culmination of a dream and vision that began more than three years ago."
"We will ensure that Space X has everything they need in order to be successful," Martinez said.
Musk also is the founder of Tesla Motors Inc., which is considering several Texas sites for a $5 billion gigafactory to produce batteries for electric cars. The plant could potentially employ 6,500 workers.
Corporate welfare.
but all the employees will pay taxes and tourists coming to watch the launches etc
So what?
Why is gov favoring one business over another?
Gov. Rick Perry announced the incentive package Monday for the project that is expected to bring $85 million in capital investment to the state.
Invest $15 million to make $85 million? Seems reasonable to me. And I would venture to guess that $85 million is just for starters.
Brownsville area???
Is this a plan to handle the illegal immigration problem?
Better not drop a spent booster on Florida, especially after not choosing her.
And range safety could be a bear, keeping the range free of boats and ships.
Ping
That's probably a fair point. What companies are competing with SpaceX right now?
True for every tax incentive at every level of government.
Hurr
i
cane.
>> What companies are competing with SpaceX right now?
Irrelevant. Other companies are not receiving subsidies. Either all companies receive subsidies or none do. No companies should receive subsidies, imo.
A bit from a rocket scientist about possible range problems:http://www.baenebooks.com/10.1125/Baen/9781625792785/9781625792785.htm?blurb
but all the employees will pay taxes...”
Right on the Mexican border. I doubt seriously if the majority of the employees will be U.S. citizens. Minimal taxes and they can live in Mexico and just come across to work every morning.
I could be wrong about this, but Flor-i-duh and the rest of the Gulf coast might also have hurricanes.
While true, the amount is a drop in the bucket compared to other incentive packages seen recently.
Thanks for the ping. There is a Falcon 9 launch scheduled for Tuesday. I’ll go ahead and post it.
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