As am I … I think I know the reason for locating in Houston, but I am most curious as to all of them. Even when you know or think you know, you will ALWAYS learn something new!!
Here is the version I know:
LBJ was put in charge of the process because he knew how to wheel and deal in Congress as well as anyone. He knew that to get approval, the program needed to be spread around. California already had plenty of aerospace to benefit. New York had its own aerospace industry and lousy weather. Alabama had the Redstone Arsenal where rockets were being developed. Florida was the only place for a launch complex. Texas made the obvious place politically for the Manned Space headquarters. AND it was LBJ's home state.
The location near Houston:
Exxon (actually the predecessor by name) had a large land development south of Houston and needed some industry to lure people southeast of Houston while the Gulf freeway was under construction. The development business was, I think, mostly an offshoot of the relative tax incentives of the time. Exxon offered the land to LBJ for free.
Any politician with his salt, and LBJ was a salty guy, wouldn't look this gift horse in its mouth. A corporation or a person cannot give a gift like this to the government. So, a deal was worked out for Exxon to give the land to Rice University without encumbrance. Rice then donated the land to the government. It was not in the City of Houston at the time. Houston and Texas are very forward looking and welcomed the investment and jobs.
Clear Lake had plenty of benefits for NASA. A huge tract of flat grazing land. Cheap new housing to move government employees into. Close proximity to Ellington Air Force base. Proximity to a major city with a good international airport. Good year-round weather so you could count on astronauts flying in and out and training at Ellington without problems. LBJ was bosom buddies with the big local engineering and construction companies that could get things done fast without the complications of building in California or bribery needed in New York real estate. (Not that LBJ was above a bit of bribery when needed.)
I'm sure the White House made many promises for unrelated programs in many other states to get the votes needed for Congressional approval in the normal horse trading that goes on in government. There are undoubtedly more details to this that didn’t make it into the papers. I don’t know what Rice U got out of it directly except perhaps the famous Kennedy “Why does Rice play Texas?” speech. But as a the major research university in the state they must have welcomed it on their back yard.
BTW, after Kennedy made his speech at Rice Stadium, he went on a tour of the Manned Space Flight Center. Since the Clear Lake campus was under construction, the center was housed in pre-existing industrial buildings. This is where he did the tour.
https://goo.gl/maps/TE2B5WbUxLT2This was the headquarters building. Now the offices of the Houston Parks Department.
https://goo.gl/maps/JYksHdbS84F2