$304 million Apple Austin campus "in peril" over incentive delays

According to Dave Porter, senior vice president for economic development at the Greater Austin Chamber of Commerce, Apple's plan for a $304 million operations center in the capital of Texas is "in peril." This is due to the Travis County Commissioners Court delaying its approval of the deal over the incentives offered to the tech company, reports the Austin-American Statesman.

"This deal is not done. It remains in peril. And Apple is frustrated," Porter said.

The county initially approved the incentives offer to Apple in principle on April 17. The total incentives package, including state and government funds, was estimated to be $35 million to $36 million over the next 10 to 15 years. Despite the initial approval, the details of the incentives plan was brought back up for discussion on Tuesday. A final vote on the decision was delayed until next week, after hours of discussion.

Apple's proposed Austin operations center would create 3,600 new jobs in the city over the next decade, many of which would be entry-level help-desk positions.

The county decided to take another look at the incentives offer after questions about the deal were raised by opponents at the Commissioners Court meeting on Tuesday.

Bill Aleshire, an attorney and former Travis County judge, called the incentives offer "a sorry contract," adding that Apple "had it rigged so they could not comply with the contract yet end up with county staff basically renegotiating the terms that they would have to comply with."

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18 Comments

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Crap. Now we'll have even more low grade Apple people running free around here. Although 3,600 jobs that come to Austin instead of India isn't that bad of a thing. Toyota dealerships in the area had better increase their shipments of Priuses.

Maybe I just don't know business tactics, but why does a very successful technology company that makes millions need incentives from a city government? It would be one thing if it was a not-for-profit interest. But Apple? Really?

devHead said,
Maybe I just don't know business tactics, but why does a very successful technology company that makes millions need incentives from a city government? It would be one thing if it was a not-for-profit interest. But Apple? Really?

Pose that question to the stockholders.

Skwerl said,

Pose that question to the stockholders.

You mean the shareholders who are so stupid they have been letting Apple build up a massive cash on hand war chest instead of paying them dividends for decades?

excalpius said,

You mean the shareholders who are so stupid they have been letting Apple build up a massive cash on hand war chest instead of paying them dividends for decades?

Realistically, anyone who's got shares of Apple that they've been holding for a decade probably couldn't care less about dividends.

smot said,

Realistically, anyone who's got shares of Apple that they've been holding for a decade probably couldn't care less about dividends.

Riiiiiiight. I guess the Kool-Aid is Apple-flavored. 8P

excalpius said,

Riiiiiiight. I guess the Kool-Aid is Apple-flavored. 8P

Wow, your comebacks are so original. You brought up the dividend thing which isn't an issue anymore, and it seemed to only be an issue to the people around here who didn't own Apple stock, and you brought up Kool-Aid. What's next, "Apple is a religion!!" ?

excalpius said,

Riiiiiiight. I guess the Kool-Aid is Apple-flavored. 8P

Have a look at the Apple share price a decade ago and the share price today. Those people would be very happy with their returns, regardless of not having a dividend!

DomZ said,

Have a look at the Apple share price a decade ago and the share price today. Those people would be very happy with their returns, regardless of not having a dividend!

What return? Unless they sell the stock or receive dividends, all they have is a theoretical value. There is no return w/o one of those things happening.

DomZ said,

Have a look at the Apple share price a decade ago and the share price today. Those people would be very happy with their returns, regardless of not having a dividend!

And other stocks that have done just as well paid dividends AND increased in potential value.

Apple has gotten away with murder on this issue and the non-disclosure of Jobs' life-threatening illness, for example.

Tweaky Nippleton said,

What return? Unless they sell the stock or receive dividends, all they have is a theoretical value. There is no return w/o one of those things happening.

Precisely.

All government agencies really need to stop the practice of giving tax breaks to companies as incentives. Just make it illegal, then it would be a level playing field.

Apple would be stupid not to choose Austin anyway, way too much growth and an abundant supply of potential employees.

RichardK said,
All government agencies really need to stop the practice of giving tax breaks to companies as incentives. Just make it illegal, then it would be a level playing field.

Apple would be stupid not to choose Austin anyway, way too much growth and an abundant supply of potential employees.


But there are other growing cities with a supply of employees. This is just a way to make sure all those jobs come here.