When I first saw the headlines my initial reaction was woah has Elon lost his mind and started acting like the government and using powers like eminent domain? However, this wouldn't make a ton of sense because when the vote was held to create the town the results were a landslide 212 - 6. Clearly he has a ton of support in making the company town and of the roughly 500 current residents approximately 260 are directly employed by SpaceX with most of the others being either married or children of people working for SpaceX.
When I looked into it I couldn't help but shake my head over the click bait that the mainstream media was pushing. What this was about was establishing a zoning map for the city. Since the city is brand spanking new it didn't have a zoning map and ya know those things can actually be useful and serve a purpose. That is all this was going to do and since you know you wouldnt want to build apartments next to the launch pad it isnt a crazy thing.
According to the Notice
You are receiving this notice because you own the above listed property that will be located in the “Mixed Use District” and will be impacted if the zoning ordinance is approved.The Mixed Use District allows for a blend of residential, office, retail, and small-scale service uses.
The whole “lose the right to continue using” their property as they do today that was highlighted by all of these news agencies.... it isnt honest or accurate. They took something and bent it to the extreme to fit their idea of how Elon is bad and blah blah blah when that is not what this was about at all. This wasnt a crazy power grab this didnt kick people out of their homes this just established the same ground rules that a city is required to do and have.