A notable clause (Section 2.18) indicates SpaceX does not intend to support or participate in the Texas High Speed Rail project near the site, though the clause’s origin and intent are unclear.

Grimes County approved a 10-year tax abatement package for SpaceX’s Terafab facility at the Gibbons Creek Reservoir, contingent on SpaceX signing the agreements, which have not yet been executed by SpaceX officials.

SpaceX must build its own fire station and wastewater treatment facility, power the site independently (not on the ERCOT grid), operate its own natural gas power plants, and draw water from Gibbons Creek Reservoir, with groundwater drilling requiring 30 days’ permit notice.

The agreements require SpaceX to invest at least $5 billion by 2030 and create 1,800 jobs by 2035, with no penalties if 90% of goals are reached.

The agreement imposes buffer zones and controls on noise and lighting, allows county inspections with seven days’ notice, and permits SpaceX to terminate with 30 days’ notice; default penalties could include repayment of up to three years of taxes.

School district taxes are not included in the abatement; Navasota ISD, Iola ISD, and Anderson-Shiro CISD are not part of the deal, though SpaceX may pursue separate JETI agreements for additional state-level tax breaks.

KBTX has filed open records requests with the relevant school districts and the Texas Comptroller’s Office for copies of similar abatements.

SpaceX would receive a 100% property tax abatement on buildings and equipment from 2027 to 2036, in exchange for a $10 million upfront payment to Grimes County and $35,000 in legal fees.

The economic development agreement runs from 2027 to 2061, with tax collection beginning after 2036 and returns of any amount over $20 million to SpaceX each year; after 2036, the county can collect debt service, road/bridge taxes, and other approved taxes along with construction-related sales taxes.