Josh Ong
Local Austin TV station KVUE reported late Thursday that the council had reached an unanimous vote to approve the incentives. Apple's proposal iinvolves a $304 million investment and more than doubling the size of its workforce in Texas.
"We have thousands of people who are unemployed or underemployed who are looking for jobs, or better jobs than they've got right now, to make a living wage," said council member Bill Spelman. "I think we've got an obligation to make that available to them."
The city's incentives will stack on top of a Texas Enterprise Fund award approved by Texas governor Rick Perry. Apple will receive $21 million over 10 years from the TEF as it expands its local customer support, sales and accounting functions. Travis County is also considering contributing $6 million to the expansion.
According to the report, Apple will become the second-largest private employer in Austin, behind only Dell, if it follows through with the proposal. The company currently employs roughly 3,100 people at its Austin offices.
Apple's facilities in Austin, Texas, via WebProNews.
MacNN reports that the facility will be built on "38 acres of land with at least one million square feet of office space" and will function as a new "Americas Operations center" for the company.
Some critics have questioned whether Apple, which has amassed $100 billion in cash, needs the incentives, but city officials have called the negotiations "very competitive" because Apple was looking into other locales.
"What we are told is that there are other locations under consideration, Phoenix being one of them," said Dave Porter of the Austin Chamber of Commerce, as noted by KXAN.
Charles Martin
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21 Comments
Welcome to America in decline, a sad culture where, desperate for crumbs, the state bribes the corporations which own it.
I understand why things like this happen, but this is taxpayer money we are talking about. They are paying Apple to build facilities there, Apple, who has billions in the bank. What's NOT wrong with this picture.
Anyway, congrats Texas.
Welcome to America in decline, a sad culture where, desperate for crumbs, the state bribes the corporations which own it.
Actually, that is quite normal and isn't a sign of decline. Large companies foreign and domestic routinely expect states and/or cities to grant them incentives for picking their city or town. This goes on all the time, and has for decades. If you are on the city council and you decide to say "no" to a large employer, they're free to take their business elsewhere. And you get nothing.
Although, in the grand scheme of things $8.6 million dollars the potential return far outweighs the cost of this gesture.
Of course, in the current climate it would do Apple well to accept and then return the grant either in cash or a commitment of equipment and funding to the state schools and universities equaling or bettering the initial grant figure.
In the long term the grants are peanuts. Austin will get its investment back a thousand fold from Apple in the form of direct and indirect new jobs, new construction, taxes and new businesses that relocate because of and to support Apple.
Government's primary motivation is for it's own survival and well being. There's nothing altruistic about it. Government needs the tax money to survive. Business is the only source of tax money to keep government alive. Without business there's no need for government because there's nothing.
And Apple is the most successful business on the planet right now.