Apple's $304 million Austin campus approved

Apple's plans to expand its operations in Austin, Texas have now gotten the seal of approval from the local county's government. The Austin-American Statesman reports that Travis County Commissioners Court voted 4-1 to approve the $305 million Apple operations center.

For a few days, it was looking like the deal wouldn't happen at all. This was due to the commissioners delaying a vote on the operations center as they debated the specifics of the incentives they were willing to give Apple. In the end, the commissioners voted to give Apple between $5.4 million and $6.4 million in tax rebates over 15 years.

Travis County's incentive package is on top of a previously approved deal with the city of Austin itself, which gives Apple an even larger $8.6 million tax rebate over 10 years. The state of Texas also chipped in, offering to give Apple a whopping $21 million in incentives.

Apple claims it will hire 3,665 people by the year 2025 for the Austin, Texas campus. According to the contact, Apple must offer an average yearly salary of $35,000 for the bottom 10 percent of its Austin campus workers; the center's contractors must also be paid a minimum of $11 an hour.

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As a Texas taxpayer, I'm pretty ashamed our government would hand-off millions to a company that already generates tons of money. Where's small business or actual Texas-based businesses in the mix?

Quikboy said,
As a Texas taxpayer, I'm pretty ashamed our government would hand-off millions to a company that already generates tons of money. Where's small business or actual Texas-based businesses in the mix?
The center will cost $305 million, with much of that going into the local economy. If Apple hires 3665 people, even if they were all at the lowest average salary of $35,000 that equates to over $128 million per year. Over 15 years (the time span of the proposed rebates) that's over like $1.9 billion, which of course will more than make up for the lost taxes.

mikeyx12 said,
The center will cost $305 million, with much of that going into the local economy. If Apple hires 3665 people, even if they were all at the lowest average salary of $35,000 that equates to over $128 million per year. Over 15 years (the time span of the proposed rebates) that's over like $1.9 billion, which of course will more than make up for the lost taxes.

I'm well aware of the cash infusion that it'll take to build and pay employees, but the general idea of a state/local government essentially paying big businesses to locate somewhere is still not a good idea when there are plenty of other businesses native to the state that could use the funds as well.

I'm surprised they're only spending $304 million. I would expect the building to do something special, like rotate around all day or have revolutionary doors or have an all glass parking deck.

Enron said,
I'm surprised they're only spending $304 million. I would expect the building to do something special, like rotate around all day or have revolutionary doors or have an all glass parking deck.

It is Texas not Dubai.............

Enron said,
I'm surprised they're only spending $304 million. I would expect the building to do something special, like rotate around all day or have revolutionary doors or have an all glass parking deck.
Or be a spaceship

Quick Shot said,
These tax rebates make me sick. Don't really care how many jobs they bring in; pay your taxes...

I will never understand the short sightedness of comments like this. They can creat jobs in Texas, or in another state, or in another country... Clearly it would be better for Texas if these jobs were in Texas and they need to make this as appealing to whatever company it is in order to create those jobs and benefit from that development. And they will benefit far more than the incentives they are offering I guarantee. Sometimes you have to step back and let your resentment for successful people go, so that you can see the bigger picture.

Quick Shot said,
These tax rebates make me sick. Don't really care how many jobs they bring in; pay your taxes...

Whoa, whoa, whoa there you commie b@$tard! Don't you know that paying taxes is an un-American communist idea promulgated by left-wing perverts like Obama? Just ask GE and Ron Paul.

Seriously though, giving such tax incentives to one of the most highly valued companies is an abomination.

Edited by LazLong, May 2 2012, 12:00am :

LazLong said,

Seriously though, giving such tax incentives to one of the most highly valued companies is an abomination.

Why? When you go shopping for a new car and a dealer give you a better deal than others what do you do?
And, BTW, dealing with a successful company is, at least potentially, much more appealing than dealing with one with an uncertain outlook; more successful the company is more taxes it will pay.............

LazLong said,

Whoa, whoa, whoa there you commie b@$tard! Don't you know that paying taxes is an un-American communist idea promulgated by left-wing perverts like Obama? Just ask GE and Ron Paul.

Seriously though, giving such tax incentives to one of the most highly valued companies is an abomination.

Its an abomination but facts are facts. Create a business friendly environment and businesses will relocate to your area. The government will get their money back from the taxes that the employees will pay. So it is no loss for them anyway.

M_Lyons10 said,

I will never understand the short sightedness of comments like this. They can creat jobs in Texas, or in another state, or in another country... Clearly it would be better for Texas if these jobs were in Texas and they need to make this as appealing to whatever company it is in order to create those jobs and benefit from that development. And they will benefit far more than the incentives they are offering I guarantee. Sometimes you have to step back and let your resentment for successful people go, so that you can see the bigger picture.
Who do you think ends up making up for the taxes these businesses aren't having to pay? I am sick and tired of paying for these companies to make a profit.

Does "the center's contractors must also be paid a minimum of $11 an hour." mean the cleaning companies will receive at least $11 an hour or that the cleaners themselves will get $11 an hour?