Aug 15, 2026
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Add us on GoogleElon Musk is buying land in Grimes County, Texas, and one of the residents whose land backs onto the site is already trying to get out.
Danny Cross has owned 31 acres below Gibbons Creek Reservoir for 22 years, according to local news outlet KBTX. When SpaceX put out renderings of the chip plant it’s building there, he learned the site would run along more than 4,000 feet of his fence.
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“He owns on the north side of me,” Cross told KBTX. “And then he owns on the west side of me.”
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Cross is trying to sell the property, but so far, doing so has been difficult.
The plant is called Terafab. SpaceX and Tesla say it will cover more than 100 million square feet, which is over five times the floor space of the largest building standing anywhere on the planet today. Musk, himself, posted on X that “Terafab Texas will be the largest and most valuable building on Earth by far,” adding that “it will be stunningly beautiful.”
The people who live around it, however, are concerned. Marie Egyed, who heads the Grimes County Citizens for Responsible Development, told Realtor.com that a building that size would drag in heavy traffic, create tons of road work, bring in an influx of workers and demand more RV parks and gas stations.
“What about our dreams?” she told Realtor.com. “We saved up our entire lives to buy this property out here to live out in the country.”
The deal the county made
Commissioners approved the development of the reinvestment zone surrounding the manufacturing facility and a tax abatement in two separate 4-1 votes in June. SpaceX pays no property tax on the site at all with a full 100% abatement. Instead it’ll pay $10 million upfront, then $20 million every year for the next 35 years.
That’s serious money for a county whose fiscal 2026 budget projected just over $38 million in total revenue. Grimes County Precinct 2 Commissioner David Tullos, who voted no, argued that the payment is locked for 35 years while inflation is not so, “at the end of that 35 years, that $20 million is no longer worth $20 million,” he told Fox. “It’s worth significantly less.”
Then there’s the state’s contribution. Texas Governor Greg Abbott’s office put in a $30 million Texas Enterprise Fund grant and says the first phase runs $16.8 billion and brings 3,000 jobs. But Grimes County’s own hearing documents put that same phase at $55 billion, and SpaceX says the plant will employ at least 1,800 people once it’s running.
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What it does to the houses right next to it
Chad Hovde, co-chair of the Bryan College Station Regional Association of Realtors Government Affairs Committee, has seen developments like this play out before. When land goes industrial, the property right beside it takes time to find its footing again. After all, what made the land desirable isn’t there anymore.
“It would have always been a peaceful country setting,” Hovde told KBTX. “But now it will begin transitioning to more of a commercial corridor.”
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Something similar is also playing out 350 miles south. Dozens of landowners near Starbase sued SpaceX in federal court in April, saying rocket launches cracked their foundations and warped their floors. One woman in Port Isabel was quoted $100,000 for the repairs — more than half what her house is worth. SpaceX hasn’t been found liable, and none of it has been proven in court.
What to do if you’re in Cross’ situation
Cross found out about SpaceX’s plans from a rendering. By then, the county had already signed and crews were clearing land near his property.
Hovde told KBTX that SpaceX is reaching out to landowners in the area, making locals like Cross offers. Some are taking them while others are holding out for higher prices.
If you hear of development coming near you, get an appraisal fast. Once a project is public, an appraisal from before the announcement is the only proof of what your place was worth when the market still saw it as quiet acreage. You’ll want that number for a sale or a tax protest.
And whatever you decide — to take an offer or to hold out — decide early. Cross is still waiting on a buyer. He plans to leave Grimes County for good once his land finally sells.
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Godwin Oluponmile is a content specialist, SEO strategist and copywriter with seven years of expertise in finance, Web 3.0, B2B SaaS and technology. His work has been featured in publications such as Entrepreneur, HackerNoon, Blocktelegraph and Benzinga.
