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The company terminated a deal reached with the office of then-Gov. Rick Perry in late 2013 that earmarked $2.3 million from the Texas Enterprise Fund for the future spaceport at Boca Chica beach, which is near Brownsville. The project has experienced delays and SpaceX had received about $400,000 of the money, but it now has paid back all of it.
The deal mandated that, to receive the incentives dollars, the spaceport be operational by Sept. 30 this year and employ 180 people by the end of 2018. It appears SpaceX was unlikely to meet either target.
This does not mean that SpaceX is abandoning the spaceport, only that it can’t meet the schedule required by this subsidy. This also might explain why they requested an additional $5 million from Texas. They knew they were going to lose this $2.3 million subsidy and were lobbying to make up for it with other state funds.
Hat tip Robert Pratt of Pratt on Texas.