SpaceX and Terafab representatives met directly with Grimes County residents for the first time on Wednesday, formally confirming that the relevant agreements have been signed and are now in effect. Local residents packed the Commissioner's Courtroom to attend what many consider the most significant meeting in the county in recent years.
The core message of the meeting was that the JETI agreement has been completed and is officially active. Both local school districts, SpaceX, and the governor have signed off. Terafab representative Riley Trennell stated that the project is now moving into the execution phase. "With JETI completed, we will move forward with the project almost immediately. We need to start civil engineering, begin laying the foundation, and get to work right away," he added. He further noted that facility renderings could be released within days, and construction is expected to begin within months. For the first phase alone, SpaceX has committed to creating 3,000 permanent jobs, spanning roles from food service, cleaning, and security to advanced semiconductor manufacturing engineering. Thousands of construction jobs will also be generated during the build-out phase. Trennell specifically encouraged young people to consider skilled trades, particularly the in-demand field of grinding.
Trennell addressed the reasons for choosing the Gibbons Creek Reservoir site. He acknowledged that no location is perfect but believes this is the best option found so far. The area is situated within the "Texas Triangle," with 7.2 million people living within a one-hour drive and 15.9 million within a three-hour drive. It also offers proximity to the Houston workforce, access to fuel for power generation, and reservoir water storage capacity. SpaceX Environment, Health, Safety, and Medical Director Jordan Buss elevated the project's importance to a matter of national security. He pointed out that the U.S. is increasingly dependent on foreign chips, and the shortages during the COVID-19 pandemic exposed the risks. Terafab presents an opportunity to reverse the long-term decline in manufacturing and rebuild the domestic semiconductor supply chain. "This is not just a company coming into a community; it holds strategic importance for the United States and Western civilization," he stated.
Addressing the residents' most significant concerns about the project's impact, SpaceX made clear commitments: it will not drive up electricity bills for residential users, will not deplete local water resources, and will not dry up the Navasota River. The company chose the site primarily for its ability to store rainwater, not for groundwater use. SpaceX will build its own natural gas power plants to supply electricity, stating these will be the cleanest natural gas facilities per megawatt in the nation. The company will not draw power from the ERCOT grid in a way that increases costs for other consumers. For water usage, a closed-loop system will be used for recycling and reuse, and waste will be sent to certified facilities in accordance with the law. It was also confirmed on Wednesday that SpaceX already owns the Navasota River pump station, which it plans to use to divert rainwater into the reservoir. Trennell emphasized that the permit limits annual water withdrawal, and the company cannot dam the river.
SpaceX attorney Buck Brannon clarified the "100% tax abatement" claim. The actual reduction is approximately 78%. The agreement stipulates that SpaceX will make a fixed annual payment of $20 million to Grimes County for 35 years, totaling $710 million. This amount exceeds the $14 million Tesla is paying to Travis County in 2025. At the facility's peak value, including school district taxes, the annual payment is expected to exceed $100 million. Once the agreement expires, the property will be fully taxed, with the portion going to the county alone estimated at $60 million per year. County Judge Joe Fauth noted that the fixed payment structure actually protects the county government, preventing the kind of tax challenges often raised by other large companies over the years.
Local resident Harry Trumbel said the Q&A session made him feel somewhat reassured, but he believed it should have been held much earlier. "This should have happened when they first proposed coming here," he said. Despite remaining concerns, he expressed cautious optimism: "Let's get started. I want to see if they can deliver on their promises."
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