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McALLEN — A South Texas community once cited as the poorest in Texas is courting an Austin-based defense technology startup that promises to bring 10,000 jobs over 10 years, more than SpaceX’s initial promise of 300 back in 2014.
The Cameron County commissioners court approved a $211 million tax break for Saronic Technologies in hopes that the company will select the Port of Brownsville for its $3.2 billion naval shipyard called Port Alpha. The tax break would come in the form of a 95% tax abatement agreement over 20 years.
If Saronic accepts the deal, Brownsville would strengthen its position as one of Texas’ emerging technology hubs, sparked by SpaceX’s arrival many years ago.
“This is exactly the kind of investment that positions Cameron County as a statewide and national leader in innovation and workforce excellence,” County Judge Eddie Treviño Jr. said in a statement.
The prospect drew a lot of attention from the community and prompted more than two dozen people to address the county commissioners during a meeting this week, both in support and against the tax abatement agreement.
Those against the agreement argued it would shift the tax burden from the company, which is valued at $9.25 billion, over to residents. Opponents also said the abatement would take away money from public schools.
“Why is it fair that a billion dollar company comes to our small city and asks for a tax break?” said Victoria Oseguera, a Brownsville resident. “Providing jobs is not enough.”
Supporters of the tax incentives said the company would bring much-needed jobs to the area. The 10,000 jobs Saronic is expected to create would outnumber the approximately 4,000 employees SpaceX has in South Texas. SpaceX is expected to grow to 8,000 employees by the end of the year, according to Brownsville officials.
“This project will build an ecosystem of suppliers, advanced manufacturers, tech, AI, highly skilled people, a pipeline of local talent and, lastly, opportunities for local entrepreneurs and local businesses,” said Gilberto Salinas, president and CEO of the Greater Brownsville Economic Development Corporation, which is offering Saronic an additional $10 million incentive.
Salinas said projects like Saronic’s Port Alpha would transform the economic landscape of Brownsville and import money that would create generational wealth.
“We need to do a better job of shedding that tagline of the poorest city in the United States,” Salinas said.
Most of the jobs Saronic will add — 7,401 — would fall under production and maintenance, which includes welders, electricians, plumbers, crane operators and assembly line workers.
Another 1,200 positions would be in engineering and design, 700 in administration and support, and 699 in research and development.
As part of the tax abatement agreement, 35% of their full-time workforce is required to be local residents.
If Saronic falls short of job projections, the tax abatement would decrease.
Additionally, the company must agree to participate in job fairs, partner with Workforce Commission Cameron and two other local educational institutions on training programs, submit annual reports to the Texas Workforce Commission and comply with all local, state and federal permits.
Opposition vs. Opportunity
Christopher Basaldu, co-founder of the South Texas Environmental Justice Network, told county commissioners that the project would further pollute the area and would not bring the economic benefits to those who need them.
“This company has no morals and they only wish to exploit cheapened land and cheapened labor,” Basaldu said. “You think that this is going to bring opportunity? It brings opportunity to very wealthy people who don’t live here. It doesn’t bring opportunity to the poorest and most marginal of us all.”
With the Port Alpha project, Saronic aims to build “the fleet of the future” that consists of autonomous warships. The company boasts that the shipyard would be the most advanced in the world and would quickly and affordably assemble vessels of varying sizes, from small tactical boats to large ships.
Late last year, Saronic secured a $392 million contract from the U.S. Navy for autonomous maritime capabilities, and earlier this month, one of the company’s AI-powered boats rescued two crew members of a downed U.S. Army helicopter that was shot down by Iran near the Strait of Hormuz.
In response to questions and a request for an interview, Saronic issued a statement confirming the company had not yet selected a location for Port Alpha.
“Saronic’s nationwide search for a location to build Port Alpha remains active and ongoing,” read a statement from a company spokesperson. “Recent filings are a standard part of the vetting process for sites under consideration, reflecting the thorough and deliberate approach required by Port Alpha’s unique requirements.”
Reporting in the Rio Grande Valley is supported in part by the Methodist Healthcare Ministries of South Texas, Inc.