SpaceX / TeraFab Project in Grimes County
What Residents Need to Know About the Reinvestment Zone, Tax Abatement, 381 Agreement, and Long-Term Impacts
Grimes County has approved major incentive agreements with SpaceX connected to a proposed semiconductor, power, and advanced computing facility near Gibbons Creek Reservoir.
This page is provided by GCCRD to help residents review the public documents, understand what was approved, and follow the potential impacts to land, water, roads, emergency services, taxes, and rural quality of life.
Grimes County Level
County Deal Documents: Reinvestment Zone, Chapter 312, and Chapter 381 Agreements
GCCRD prepared this plain-English summary to help Grimes County residents better understand the County-level agreements approved in connection with the proposed SpaceX / TERAFAB project.
This section focuses on the documents approved by Grimes County Commissioners Court, including:
SpaceX Reinvestment Zone No. 01-2026-001
Chapter 312 Tax Abatement Agreement
Chapter 381 Economic Development Agreement
Related County public hearing and incentive documents
These County agreements are separate from the school district JETI applications, but they are part of the same larger public-incentive picture.
Our summary is intended to help residents understand what the County agreed to, what payments or incentives are included, what potential benefits and concerns may exist, and how the agreements compare with the County’s adopted tax abatement and Chapter 381 guidelines.
This information is provided for public education and transparency. GCCRD encourages residents to read the original County documents, review the applicable state laws, and ask questions of their elected officials.
The source documents are linked below.
To view or download directly from the Grimes County Website, visit:
Use the links to view the source documents reviewed in this summary. The summary is provided for public education and transparency. We encourage residents to read the original county documents and ask questions of their elected officials.
JETI PROGRAM - State Level
JETI Applications: What They Mean for Grimes County
In addition to county-level reinvestment zones, tax abatements, ERCOT activity, and local development records, Grimes County residents also need to understand the JETI applications connected to the proposed TERAFAB / SpaceX project.
JETI stands for the Jobs, Energy, Technology, and Innovation Act. It is a Texas economic incentive program that allows certain large projects to apply for a 10-year limitation on the taxable value of eligible property for school district maintenance and operations taxes.
In plain language, this means a company may ask the state, the Governor’s office, and a local school district to approve an agreement that limits how much of the project’s value is taxable for certain school district tax purposes for a period of time.
JETI applications can involve:
Local school districts
State-level review
Job creation requirements
Investment commitments
Taxable value limitations
Long-term impacts on local public revenue
Public transparency and accountability questions
The TERAFAB / SpaceX JETI filings should be reviewed carefully by citizens, parents, taxpayers, school district officials, and local leaders.
A project of this size is not just a private business decision. It has the potential to affect schools, roads, water, emergency services, land use, utility demand, and the long-term character of Grimes County.
To help residents better understand what has been filed, GCCRD has created summary reports for the JETI applications connected to each school district.
Below, you can access:
A summary of the Anderson-Shiro CISD JETI applications
A summary of the Iola ISD JETI applications
A combined summary showing how the two school district application sets fit together as part of the larger TERAFAB project
Links to the original state application files for those who want to review the source documents directly
We highly recommend that residents review the original application materials for themselves.
Our summaries are intended to help make the documents easier to understand, but the source filings are the official records.
As with ERCOT listings, reinvestment zones, and tax abatement agreements, our goal is to help residents understand what is being filed, what is being requested, who is involved, and what questions still need to be answered before decisions are made that could affect this county for decades.
LINK TO THE TEXAS JETI ACTIVE PROJECTS
Local School Districts (ISD) Level
ISD Public Information Records: Iola ISD Received, Anderson-Shiro CISD Pending
GCCRD has received initial Public Information Act records from Iola ISD related to the SpaceX / TeraFab AI JETI applications.
These records show that the school district incentive process was moving forward alongside the County’s tax abatement, Chapter 381, and reinvestment zone discussions.
Because this project involves multiple public entities, multiple school districts, multiple phases, and long-term taxpayer implications, GCCRD believes residents deserve one clear, complete public explanation of what has been filed, what has been requested, what has already been approved, and what decisions may still be ahead.
GCCRD is reviewing the Iola ISD records and will continue sharing summaries and source documents as appropriate so residents can better understand the timeline and public process.
Anderson-Shiro CISD Records
Our Public Information Act request to Anderson-Shiro CISD was sent to the wrong email address and was delayed — through no fault of the school district.
Anderson-Shiro CISD is sending the requested information, and GCCRD will post an update as soon as it is received.
Additional Iola ISD Records Show Payment, Closed-Session Planning, and Multi-District Coordination
After GCCRD received the initial Iola ISD response, we received an additional batch of Iola ISD records related to the SpaceX / TeraFab AI JETI applications.
These additional records show that SpaceX submitted four $30,000 JETI application payments to Iola ISD, totaling $120,000, with receipt acknowledged on May 6, 2026.
The records also show coordination involving SpaceX representatives, consultants, school district representatives, and school finance advisors regarding closed-session presentations to school boards, including Iola ISD and Anderson-Shiro CISD.
The records indicate that school finance consultants were preparing to discuss the potential impact of the JETI agreement on taxable value, M&O revenue, I&S revenue, tax rates, and existing taxpayers.
The records further show coordination regarding meeting dates, public hearing timing, Comptroller recommendation timing, and SpaceX representative availability across multiple districts.
This reinforces GCCRD’s concern that citizens are being forced to piece together a major public incentive package through Public Information Act requests rather than receiving one clear, complete explanation before public votes and long-term commitments are made.
What Citizens Need to Know
The most important citizen-facing point is this:
The Iola ISD records show that application payments had been made, presentations were being planned, financial impacts were being analyzed, and public hearing timing was being coordinated before the public had a full, plain-English explanation of the project, the entities involved, the school district incentives, the project boundary, and the possible effect on existing taxpayers.
Citizens deserve transparency before public entities commit tax value, public resources, and long-term agreements.
SPACEX / TERAFAB — WHAT TO KNOW
Project
TERAFAB Advanced Manufacturing Campus
Proposed semiconductor manufacturing, advanced computing, artificial intelligence, power, utility, and support infrastructure campus in Grimes County, Texas.
Applicant / Parent Company
The JETI applications identify TeraFab AI, LLC as the applicant.
The filings identify Space Exploration Technologies Corp / SpaceX as the parent company or affiliated company.
The project description also references affiliated companies including Tesla, SpaceX, and xAI.
Location
The project is tied to the Gibbons Creek area and surrounding rural areas of Grimes County, including land within both Anderson-Shiro CISD and Iola ISD.
The project-boundary / reinvestment-zone parcel lists in the JETI applications identify approximately:
18,188.8277 acres in Anderson-Shiro CISD
4,240.3900 acres in Iola ISD
Combined, the two ISD application sets identify approximately 22,429.2177 acres tied to the TERAFAB project boundary / reinvestment zone.
Reinvestment Zone
SpaceX Reinvestment Zone No. 01-2026-001
The County reinvestment zone order describes the proposed project as including a semiconductor manufacturing plant, power plant, and artificial intelligence facility, along with related equipment, within the property described in the zone exhibits.
Status
Active.
On June 3, 2026, Grimes County Commissioners Court approved the creation of SpaceX Reinvestment Zone No. 01-2026-001 and approved related tax incentive agreements.
Separate JETI applications have also been filed for the TERAFAB project through both Anderson-Shiro CISD and Iola ISD.
Overview
The Gibbons Creek area includes the former coal-fired power plant property and surrounding rural acreage in Grimes County.
The area has long been viewed as a likely target for large-scale industrial, energy, manufacturing, data, or computing-related redevelopment because of its history of major energy use, transmission access, reservoir access, and large land area.
The JETI filings describe the proposed TERAFAB project as a next-generation, vertically integrated semiconductor manufacturing and advanced computing campus. The filings describe a campus intended to include semiconductor design, photomask generation, wafer fabrication, advanced packaging, system-level integration, supporting power generation, and a space compute test facility.
This is not simply one building or one factory.
The filings describe a multi-phase industrial campus that may include:
Semiconductor fabrication buildings
Clean rooms and sub-fabs
Administrative and engineering offices
Warehousing and logistics structures
Utility infrastructure buildings
Central utility plants
On-site substations and transformers
Space Compute Test Facility
Water treatment and recycling facilities
Industrial waste treatment facilities
On-site power generation
Backup generation systems
Gas turbines
Utility-scale battery storage
Roads, paving, drainage, and internal transportation infrastructure
JETI Applications
The JETI filings are split across two school districts:
Anderson-Shiro CISD
J0035 — Phase 1
J0036 — Phase 2
J0037 — Phase 3
J0038 — Phase 4
Together, the Anderson-Shiro CISD applications list approximately $73.66 billion in estimated eligible investment property.
Iola ISD
J0039 — Phase 1
J0040 — Phase 2
J0041 — Phase 3
J0042 — Phase 4
Together, the Iola ISD applications list approximately $45.73 billion in estimated eligible investment property.
Combined Estimated Eligible Investment
When the Anderson-Shiro CISD and Iola ISD application sets are reviewed together, they list approximately $119.39 billion in estimated eligible investment property.
This aligns with the project description stating that the four-phase TERAFAB project is expected to involve a total capital investment range of approximately $55 billion to $119 billion for initial phases, with possible long-term expansion potential beyond that level.
What Was Approved by Grimes County
On June 3, 2026, Grimes County Commissioners Court approved the creation of SpaceX Reinvestment Zone No. 01-2026-001 and approved related tax incentive agreements with SpaceX.
The approved County package includes two major parts:
A Chapter 312 Tax Abatement Agreement
A Chapter 381 Economic Development Agreement
Together, these agreements create a long-term incentive package connected to the proposed SpaceX / TERAFAB project.
Under the approved Chapter 312 Tax Abatement Agreement, Grimes County agreed to provide a county property tax abatement on qualifying real property improvements and qualifying new tangible personal property, subject to the terms of the agreement.
In exchange, SpaceX agreed to make payments in lieu of taxes, commonly called PILOT payments, to Grimes County.
Those payments include:
A $10 million up-front payment within 60 days of the agreement’s effective date
$20 million per year for tax years 2027 through 2036
The separate Chapter 381 Economic Development Agreement appears to continue financial incentives after the initial tax abatement period. Beginning in 2037 and continuing through 2061, the County may provide annual economic development grants back to SpaceX based on the amount of qualifying county property taxes paid above the agreement’s stated threshold.
In plain English: Grimes County will receive guaranteed payments from SpaceX, but the County has also agreed to reduce, abate, or grant back a significant portion of future property tax revenue that might otherwise be collected from the project.
Land, Homes, and Existing Uses Inside the Zone
The acreage identified in the JETI filings raises serious questions for residents inside the project boundary and reinvestment zone.
The filings do not appear to describe this as a small site for one factory. Instead, the ASISD and Iola ISD applications together identify approximately 22,429 acres tied to the project boundary / reinvestment zone.
The Iola filings specifically acknowledge that some parcels within the proposed reinvestment zone and project boundary contain existing improvements, including residential homes, barns, and similar structures. The filings also state that if acquired, those improvements would likely be demolished in connection with construction of the proposed facility.
The filings do not appear to clearly explain:
how many homes are inside the project boundary,
how many people currently live there,
whether those homes are occupied,
whether residents have agreed to sell or lease,
whether any properties are homesteads,
whether tenants are involved,
what happens to private wells, septic systems, barns, fences, livestock, or agricultural operations,
or what protections exist for directly impacted families.
These are not just parcels on a map.
This is land where people live, work, farm, ranch, raise families, and have roots.
Potential Benefits
The approved agreements and proposed project could bring significant financial and economic benefits to Grimes County, including:
Guaranteed payments to the County
A $10 million up-front payment
$20 million per year in PILOT payments during the initial 10-year abatement period
A major capital investment in Grimes County
Potential job creation
Potential sales tax and construction-related economic activity
Potential support for workforce development, local schools, and community organizations
SpaceX-funded on-site security, fire prevention, emergency medical response, and an ambulance bay for County use
These are meaningful potential benefits and should be part of the public discussion.
Potential Concerns
The approved agreements and JETI filings also raise serious questions and concerns for Grimes County residents.
These include:
The County will not receive full county property taxes on qualifying improvements during the initial abatement period.
The Chapter 381 agreement appears to continue financial incentives for an additional 25 years after the initial tax abatement period.
The agreements may limit the County’s net tax benefit from the project for decades.
The JETI filings identify approximately 22,429 acres tied to the combined project boundary / reinvestment zone.
The filings describe a campus-scale project, not simply one factory building.
The filings include on-site power generation, gas turbines, battery storage, water treatment, recycling, industrial waste treatment, substations, and internal infrastructure.
The full impact on roads, water, emergency services, land use, housing, traffic, noise, lighting, air quality, wildlife, and rural character is not yet fully known.
The agreements reference use of Gibbons Creek Reservoir water, while stating that SpaceX does not currently intend to use groundwater.
Groundwater use is not absolutely prohibited if SpaceX later seeks required permits.
Environmental protections in the agreements largely rely on compliance with existing law and “commercially reasonable efforts.”
The local hiring language may be less specific than many residents expect.
Existing homes, barns, wells, septic systems, fences, livestock operations, and agricultural uses inside the project boundary are not clearly addressed in the public filings reviewed so far.
The size and scope of the project could permanently change the character of the Gibbons Creek, Carlos, Iola, Anderson, and surrounding rural areas.
Why This Is Important
This is not just a tax agreement.
It is a long-term development decision that could shape Grimes County for generations.
Residents deserve to understand:
what the County agreed to,
what SpaceX / TeraFab is requesting,
what the school districts are being asked to approve,
what tax revenue may be abated, limited, or granted back,
what protections are included,
what protections are not included,
how much land is included in the project boundary,
who may be directly affected inside the zone,
how the agreements compare with the County’s adopted tax abatement guidelines,
and how the agreements align with Texas economic development laws.
GCCRD’s goal is to help residents understand what has been filed, what has been approved, what is still pending, and what questions must be answered before Grimes County is permanently transformed by a project of this size.
GCCRD Concerns:
Public Notice, Maps, and Access to Information
GCCRD remains concerned about the timing, clarity, and completeness of the information made available to residents before the June 3, 2026 public hearing and vote on the SpaceX Reinvestment Zone and related incentive agreements.
This concern has become even more serious now that the JETI filings show the proposed TERAFAB project boundary / reinvestment zone appears to include approximately 22,429 acres across Anderson-Shiro CISD and Iola ISD.
Timeline of Public Information
May 5, 2026 — Original Public Hearing Notice Released
On May 5, 2026, Grimes County released the original public hearing notice for the June 3 SpaceX matter.
After that original notice was made available to the public, additional SpaceX-related materials were later added or updated on the County website.
May 19, 2026 — GCCRD Submitted Public Information Act Request
On May 19, 2026, GCCRD submitted a Public Information Act request seeking additional information regarding the proposed reinvestment zone, including maps, parcel lists, CAD property identification numbers, acreage information, legal descriptions, metes-and-bounds descriptions, general boundary descriptions, and related public records.
May 22, 2026 — Second Page Added to June 3 Notice
On May 22, 2026, Grimes County updated the June 3 public hearing notice to include a second page with site maps for the proposed SpaceX Reinvestment Zone No. 01-2026-001.
This second page was not included in the notice originally available to the public.
To GCCRD’s knowledge, the County did not issue a separate public announcement explaining that the notice had been updated. GCCRD discovered the revised notice on the County website and shared it with the public through our Facebook page.
The map provided on May 22 was difficult to read and did not include a clear parcel list, tract list, CAD property ID list, acreage list, legal description, metes-and-bounds description, or written boundary explanation.
As posted, many residents could not reasonably determine whether their home, land, road, neighboring property, water source, or surrounding area was included in or near the proposed zone.
May 29, 2026 — Additional SpaceX Links and R-Number Maps Added
On May 29, 2026, Grimes County added additional SpaceX-related links to its homepage, including:
SpaceX Public Hearing Item 1 — Tax Abatement
SpaceX Public Hearing Item 2 — Reinvestment Zone
SpaceX Proposed Reinvestment Zone Maps — rendered based on submitted R-numbers
The newly posted map packet included more detailed maps and R-numbers associated with the proposed zone.
These R-numbers appear to be the type of property-identifying information residents needed in order to better understand what land may be included in the proposed SpaceX Reinvestment Zone.
GCCRD is concerned that releasing more detailed property-identifying information only days before the hearing gave residents limited time to review the information, determine whether their property or neighboring property may be affected, consult with others, prepare comments or evidence, or speak meaningfully for or against the proposed designation.
Why This Is Important
Texas law gives interested persons the right to speak and present evidence for or against the designation of a reinvestment zone.
That right is meaningful only when the public has clear, usable information in enough time to understand what is being proposed.
GCCRD believes residents should have had access to clear boundary information, parcel details, R-numbers, acreage, legal descriptions, tax terms, application materials, and public-impact information well before the public hearing and vote.
This issue is not about opposing access to public documents after the fact. It is about whether residents had meaningful access to the information before they were asked to participate in the public hearing process.
GCCRD’s Position
GCCRD believes major public incentive agreements should not move forward until residents have had meaningful time to review the full boundary information, parcel details, acreage, legal descriptions, tax terms, application materials, and public-impact information.
The public should not be asked to support or oppose a major reinvestment zone, tax abatement agreement, Chapter 381 grant, development agreement, JETI application, or related public incentive without enough time and information to understand what is being considered.
Unanswered Health and Safety Criteria Issue
GCCRD is also concerned that the County has not clearly shown, on the public record, how this project satisfies the County’s own health and safety criteria for tax abatements and Chapter 381 incentives.
Grimes County’s Tax Abatement / Chapter 381 Guidelines and Criteria state that an abatement may not be granted if the project would constitute a hazard to public safety, health, or morals.
GCCRD has raised this issue multiple times in public comments since April.
The JETI filings now describe a campus-scale project involving semiconductor manufacturing, advanced computing infrastructure, artificial intelligence facilities, on-site power generation, gas turbines, battery storage, water treatment, recycling facilities, industrial waste treatment, and major internal infrastructure.
Before public incentives are granted for a project of this scale, residents deserve to see the public record showing how the project satisfies the County’s own health and safety standard.
GCCRD believes this issue should be addressed clearly, publicly, and on the record.
County-Provided R-Number Maps
The maps below were posted by Grimes County as part of the SpaceX Reinvestment Zone No. 01-2026-001 materials.
These maps identify R-numbers associated with the proposed zone and provide more detail than the original public notice map.
These R-number maps are important because the later JETI filings for Anderson-Shiro CISD and Iola ISD appear to connect the TERAFAB project boundary / reinvestment zone to approximately 22,429 acres across the two school districts.
GCCRD is sharing these maps so residents can review the County’s source materials for themselves.
Residents should compare the maps and R-numbers with their own property records, nearby parcels, roads, water sources, and surrounding areas.
These maps are provided for public awareness only.
Property owners should confirm any specific parcel information directly through the Grimes County Appraisal District, county records, title records, survey records, or qualified professionals.
Click any image to enlarge.
Download all maps below.
These maps were posted by Grimes County on or around May 29, 2026, only days before the June 3 public hearing.
Residents should review the maps carefully and compare the R-numbers to property records if they need to determine whether specific parcels are included or nearby.
Current Status and Next Steps
Grimes County Commissioners Court has approved SpaceX Reinvestment Zone No. 01-2026-001 and related incentive agreements, including a Chapter 312 Tax Abatement Agreement and a Chapter 381 Economic Development Agreement.
Since that vote, additional JETI application documents have been posted for both Anderson-Shiro CISD and Iola ISD, giving residents a clearer picture of the proposed TERAFAB project’s size, scope, phased investment schedule, project boundary, and potential long-term impact.
GCCRD continues to review the approved agreements, JETI applications, public records, county agendas, land filings, permit applications, tax abatement documents, reinvestment zone materials, environmental filings, public-notice records, and related development information.
GCCRD has also submitted Public Information Act requests, contacted the Texas Attorney General Open Government Hotline, submitted requestor comments to the Attorney General, strengthened its citizen petition, and previously provided Commissioners Court with suggested minimum terms for public protections.
This process is not over simply because the County agreements were approved.
Residents should continue to stay informed, review the source documents, ask questions, speak on the record when opportunities are available, and request clear answers from their elected officials, school districts, county officials, and state agencies.
If this project is going to reshape part of Grimes County for generations, residents deserve transparency, accountability, enforceable protections, and meaningful access to public information.
GCCRD will continue sharing public records, summaries, updates, and educational materials as more information becomes available.
Last Updated: June 12, 2026
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