DOING THE MATH AT STARBASE, NO, MORDIDALAND

Special to El Rrun-Rrun

In an ironic twist of events, numerous local vendors say that the leading high-tech, cutting-edge industry in our region, SpaceX, has been bedeviled by the ages-old border affliction, the mordida.

Speaking on condition of anonymity, many former vendors in the food industry and other materials suppliers who serviced SpaceX say that locally-hired purchasing employees – unbeknownst to outside SpaceX administrators – have implemented apparent cost-cutting measures which result in shaving a few bucks off the costs of their wares while pocketing a slice off the top for themselves.

The result, they said, was that local vendors have seen their profit shrink by a couple of dollars per serving to the point that it is no longer worth their while to do business with the company located some 21 miles off Boca Chica beach, a site now called Starbase by Elon Musk.

"The California-based administrators don't know that this is taking place under their own noses," said a vendor who grew tired of paying the required mordida to one of SpaceX's local purchasers. 

They say it all began back in late 2019 and thru 2020, when SpaceX had allowed food trucks to go and offer food and beverages to their employees and contractors at the site since there was nothing out there for people to eat. At say, $10 a serving, the profits were immense for local providers. With more than 1,000 employees performing under local contractors, it amounted to shooting fish in a barrel, until the mordida was put in place.

One day Musk flew in and ordered all the food trucks to leave and told them they had 48 hours to pack and leave or else he would call the towing company to have them towed away. 

All but two food trucks obeyed and then SpaceX workers towed the food trucks at night and placed them on the middle of Highway 4 and called the Cameron County Sheriff's Department because they were obstructing the road and they were towed them away at the owners' expense.

Later in 2019, the SpaceX administrators asked the local elected officials what hip restaurants they recommended and which local eateries were worth catering their wares for the refined tastes of the West Coast engineers, the administrators, and their VIP personnel and, of course, those officials quickly recommended their friends. 

At first, the 1848 barbecue food truck and Lola's Bistro, owned or rented by former Mayor Tony Martinez, were doing a brisk – and profitable – business. One of the main early providers was Dodici's, owned by current mayor Trey Mendez, 7th and Park, owned by Graham Siever-Schultz, who has been a longtime protege of la chisquida commissioner Rose Gowen whose bicycle fetish is the stuff of legend, and of course, Terras, a favorite haven of the local political elite.

They were rolling in gravy for a good long while by catering to SpaceX personnel at an average of $20  or thereabouts for a plate plus delivery. They were all were making stupid money and getting paid via credit card. Business out at Space X was said to be paying an average of $2.2 million for food a month for food alone. Do the yearly math.

In 2020 the old Hospitality Manager was fired and they hired a new Brownsville-based local purchasing director for hospitality. 

The new manager turned out to be a genius and thoroughly versed in the border concept of business and serving his postre under the table and he told California SpaceX directors that it wold result in bringing more of a variety of foods for a cheaper price that would save SpaceX at a mouth-watering $1 million a month. 

Multiply that by 12. It ain't rocket science to see the real feria involved.

The directors from SpaceX in California corporate office were also told that they would not only save SpaceX millions but that the new measures would also control all the local vendors. 

Red Flag! 

There was, of course, a catch to this great opportunity. Interviews with some vendors revealed that those chosen had to pay a 10-12 percent "recommendation gratuity" of the price. Think of it as a "commission."

Local struggling small businesses were offered the opportunity to do a lot of business with SpaceX. All you had to do was show the proper gratuity and you would get in. 

Take, for example, Maiz, one of many local restaurants who were called by SpaceX for their fare. Business was in the dumps thanks to the pandemic, until a representative of a certain rocket company called one day in early June 2020, its owners told the local daily

“Business just kind of came to a halt,” co-owner Steve Torres told the Brownsville Herald. “We were fortunate to get that great call from SpaceX that they needed food. That’s truthfully what propelled us to another level at that point. We were here, stagnant, like super flat-lined, and then they called us and said hey can you deliver us a 100 plates?”

The next order was for 200, then 300, 400 all the way up to 800 at its peak, Torres said, adding that the company patronizes many small, independent restaurants around as well as corporate chains like Whataburger.

“They’ve used us. They’ve used Mr. Taco. They’ve used a ton of restaurants here in Brownsville. They’ve used Main Street Deli. They’ve used New York Deli. They’ll just call you. Hey, can you send us 500 sandwiches?”

Torres said he knew the orders would stop coming at some point, though he believes Maíz is still in the rotation. At any rate, SpaceX was a lifeline at a critical juncture, he said. 

“We knew it would eventually come to a halt, but fortunately we didn’t have to go after loans or anything,” Torres said. “We were paying everybody still. Even though work was slow, we were still able to pay everybody and not have to go to unemployment.”

It probably didn't hurt that co-owner Ruben O'Bell knows a little something about doing business the border way. Or that Da Mayor was his friend. And people like Viro Cardenas, Ernie Elizondo (of Elizondo Second-Hand Store on whose walls Elon Musk's mural was painted), have all crowded around and jumped on the SpaceX gravy train already.

During the pandemic and shelter-in-place in the poorest city in the USA, local businesses were desperate to stay in business and had to do whatever it took to keep your people working so as not to close their doors. 

As a response to the entreaties, a lot of small businesses started offering their menu at discounted prices. They went from $20 a plate to under $10 a plate – including delivery – to and from SpaceX-Boca Chica, averaging a round trip of 50 miles from then city. 

The new guys told SpaceX honchos that they could deliver the goods for an even lower price, say $9, and save them an extra dollar.

In other words, you charged SpaceX $9 and the new SpaceX's new hospitality crew's  "gratuity" was, let's say, $2 per plate in cold, hard cash. 

A vendor was left with $7 from with they had to pay supplies, overhead, taxes, both local, state, and federal taxes, salaries, payroll taxes, and income tax filings. 

An added attraction for small businesses to bite was that – maybe, just maybe – Elon Musk would taste and eat your food and if Elon tweets that your food was yummy, you could could get rich. Imagine the opportunity and good publicity – perhaps even fame – if the richest man in the world says your taquitos are the best? 

You have to admit, selling a dream is not a crime, believing a dream is not a crime. 

Taking advantage of struggling small businesses with extortion, or pay-to-play, translates into border Spanish, el moche, or on either side of the Rio Grande, la mordida, could be judged to be downright criminal.

Fast forward to 2021. If in 2019 they were giving away food to keep employees, two years later they are selling discounted food at discounted prices. Any day you go to SpaceX you have at minimum 800-1000 employees working under contractors building the Stargate Dream of Elon Musk in three eight-hour shifts 365 days a year, 24-7.

SpaceX has by now hired chefs and has its restaurants. And the handful of local businesses that cater to SpaceX on everything from food to construction materials know the rules.Vendors past and present know that cold truth and keep quiet hoping to earn an honest buck even if it means letting the mordelon and pals wet their beak. 

Welcome to the border's Brave New World, Mr. Musk.