AUSTIN (KXAN) - Travis County Commissioners have decided to give Apple a big tax break to expand in Austin. The billion-dollar company will save $6 million over the next 15 years.
In exchange, Apple has promised a portion of the 3,600 jobs will go to people who already live here. Those jobs are to be in place by Dec. 31, 2025, according to the agreement signed Tuesday afternoon.
The company has to hold up its end of the bargain -- its own investment of more than $280 million over the next decade for a new facility and related costs.
Read the key terms of the Travis County Economic Development agreement with Apple, Inc.
According to the 28-year terms agreed upon Tuesday, Phase 1 is to be complete by Dec. 31, 2015, with Apple, Inc., making a minimum investment of $56.5 million. Phase 2 is to be complete by Dec. 31, 2021, and includes a facility of 800,000 square feet and a $226 million investment.
The agreement states there will be no payment made in any given year in which the Apple investment is not met.
Terms of job creation cover retaining the existing 3,100 jobs already in Austin, and adding 3,635 new full-time jobs by Dec. 31, 2025. Those jobs are to pay an annual salary of $54,000 to $73,500 over a 10-year period. Again, if the new employee requirements are not met by Apple, Inc., then payment to the company will not be made in any given year of unmet terms.
If the job creation or minimum investments are not completed as stated in the agreement, Travis County can recapture two years of rebate funds paid to Apple. Five years of rebates can be recaptured by the county if the amount of new jobs and investment requirements are not met at the end of 2025.
In addition, if Apple, Inc., achieves LEED certification, it will earn an additional 5 percent rebate. Another 5 percent tax rebate will be earned if 5 percent of 50% of the new jobs required are filled with Travis County residents.
Other incentives
In March, the Austin City Council approved giving $8.6 million to Apple in incentives to expand its operations. This follows the approval of the state of Texas giving the company $21 million from the Texas Enterprise Fund.
Capital Metro also plans to expand its service to the Apple facility in Northwest Austin to serve the thousands of employees and help alleviate extra traffic in the area which will surely accompany bringing more workers to that part of the city.
The bus stop at Research Boulevard is the closest one to Apple, and it is still about a mile away. There are 12 bus stops within a 1.5-mile walking distance of Apple. When it comes to MetroRail, the Howard Station is about four miles way, and the one at Kramer is about 4.5 miles away.
"Transit is definitely an incentive and on the top of the list," Linda Watson, Capital Metro president and CEO, said in March.
Watson said buses, ride-sharing and telecommuting are among the options her transit group is considering.
Public meeting
At a public meeting held April 3, commissioners heard comments from citizens who didn't approve of Travis County trying to lure Apple to expand in Austin by offering the company money in the form of tax rebates.
"I think we need to not act like swooning consumers or Apple groupies," said Ed Wendler Jr , an Austin resident who stood before the commissioners to voice his concerns.
No comments:
Post a Comment