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Aerial view of the Tesla factory in Freemont, Calif.
It could be the biggest Austin economic development project in a generation. One observer calls it a "get-out-of-jail-free" ticket to overcome the devastating economic impact of the coronavirus pandemic. But Tesla, the high-flying builder of electric vehicles, has asked local officials to react quickly and fully to its requests. If not, Tesla could flee to a rival location in Tulsa, Okla.
Tesla, a Palo Alto, Calif.-based company, has three objectives.
- Property tax abatements of $68 million and $14 million from the Del Valle Independent School District and Travis County, respectively, over a 10-year period. This means that Tesla would be paying approximately 20 cents on the dollar of the tax bill it would otherwise face. Still, say those familiar with the proposal, the Tesla payment would represent a huge boon to DVISD, a relatively poor school district that has 11,200 students in 10 schools. Eighty-four percent of the students are Hispanic.
- Rapid approval of environmental permitting from the city of Austin. While Tesla's proposed site is not in Austin's city limits, it is within the city's extraterritorial jurisdiction (ETJ), an area extending out from the city in which Austin controls development that affects the environment.
- Fast-track approval of all considerations by no later than July 31 so that Tesla could begin construction soon thereafter.
Seeking incentives
Some might think that the $82 million in tax abatements is pocket change for Tesla, a company with a market capitalization of $185.5 billion as of June 19. That is several times higher than General Motors' market cap of $38.1 billion and Ford Motor Co.'s market cap of $24.8 billion.
But a source familiar with Tesla's thinking says the property tax concessions are essential, and if not granted, are a deal-breaker. While the company is financially strong and its chief shareholder, Elon Musk, is wealthy enough to launch a manned space vehicle, the valuations on an automotive plant and its highly specialized equipment can be so high that thin profit margins "go upside-down very quickly, so what [the taxing bodies] do is very important."
Tesla property tax impact. (Travis County Commissioners Court)
Choosing the site
Also critical is how the city of Austin's environmental regulators will consider the 2,100-acre site, where owner Martin Marietta now conducts sand and gravel mining. Tesla is said to be concerned with environmental standards in Texas that primarily relate to ranch water tanks—artificially created ponds dug to slake the thirst of cattle.
Those regulations, according to a source familiar with Tesla's application, require 300-foot setbacks from the tanks because of "wetlands" that surround them. If that standard were applied to Martin Marietta mining pits—which looks like a war zone after an aerial attack—there would be no land worthy of development, said a source. That source and others declined to be identified because they were not authorized by parties involved to speak publicly.
Tesla's proposed site is near corner of the intersections of state highways 71 and 130, east of the Austin-Bergstrom International Airport.
The rush to approval
Tesla's request for a "go-fast" processing of its application could present a significant challenge to the city of Austin, which is now overwhelmed with the need to respond to the COVID-19 pandemic and recent protests against police violence. According to observers, there is a real question whether the city has the capacity to focus quickly and in depth on the Tesla application.
Asked why Tesla is in a rush during a time when auto sales have declined sharply, a source familiar with Tesla's thinking said that for every day of lost production, there is lost revenue. "It's just the way business looks at it."
Still to be determined is whether Tesla's expectations about speed of movement align with the city's. Austin City Council is not scheduled to meet again until July 30. There is uncertainty about whether Tesla will wait that long. "The city of Austin can stand only so much pressure," said a source.
Supporters and opponents
Tesla is not without advantages in its pursuit. The firm believes it has allies within the Travis County government and DVISD, as well as in the Greater Austin Chamber of Commerce and "up and down" the ranks of state government. "The support so far has been remarkable," he said.
DVISD Superintended Annette Tielle said in a statement last week, "The addition of a company who has the ability to support our community both economically and academically would be advantageous for our students and accelerate our efforts to mentor and develop the workforce of the next generation." The DVISD board will next take up the proposal during a closed session at a meeting on Wednesday.
The Travis County Commissioners Court will receive presentations on the proposed agreement from staff and Tesla representatives at a meeting on Tuesday. In the presentation, which was made public last week, the county staff wrote that the proposal "results in a substantial benefit to the community and a net fiscal benefit to the County."
Commissioner Gerald Daugherty told Austonia that the proposed factory would benefit DVISD more than the county—equating it to the 2005 economic incentive deal Manor ISD entered into with Samsung. He added that the prospect of 5,000 jobs, most of which would go to skilled workers without college degrees, was alluring. "Let's face it, today in America manufacturing is really one of the more difficult areas to bring to your community," he said. "That's a pretty enticing deal for us."
A person familiar with Tesla's thinking said there were alternative plans if the manufacturer could not win speedy approval of the Austin site, but declined to give details. Tulsa has been mentioned publicly as a competing destination. The source declined to say whether there were alternative sites in Williamson County, which has been an ardent suitor of Tesla, or elsewhere in Texas.
Tesla job creation over time. (Travis County Commissioners Court)
Travis County projects 5,000 Tesla jobs over the next several years.
While Tesla is unlikely to face opposition from neighborhood groups, because there are few neighborhoods in the area of the proposed site, it may well face challenges by the United Auto Workers, which has sought to organize Tesla. The firm's plants now are non-unionized. And the UAW, through allies in the local Workers' Rights groups, has political support in Austin that could become a factor in decision-making.
Rick Levy, president of Texas AFL-CIO, urged local officials to consider what he called Tesla's troubled history with taxpayer subsidies—and its flouting of government authority. He said Elon Musk reopened the company's Fremont, Calif., factory in defiance of a local county shelter-in-place order, meant to limit the spread of COVID-19.
So, you wanna give Billions to a billionaire? What’s it like to work for Tesla? Have they ever kept their promises… https://t.co/TAc1Gr6yD8— rick levy (@rick levy) 1592859690.0
In a phone interview on Monday, Levy worried that if Travis County gets Tesla to agree to worker protections and other terms, it may be hard to enforce compliance. "I'm not totally sure that it's possible because when somebody is as big as this operation is, does the tail wag the dog or does the dog wag the tail?" he said.
The optics of giving a public subsidy to a billionaire-owned company are unpalatable to some.
Mayor Pro Tem Delia Garza, whose district runs closest to the proposed factory site, said in a statement to Austonia: "For me, any consideration of an opportunity like this one for residents in Southeast Austin and Travis County must include good union jobs and fair wages. I'm also concerned about some of our small businesses struggling right now, and what kind of message is sent to them for government to help wealthy corporations."
Why Austin
Asked what makes Texas attractive to Tesla, a source said that Texas' "entrepreneurial, pioneering personality" matches that of Elon Musk. As for Austin, the city carries the added advantage of a highly-educated labor pool deep in engineering and technical skills. "There are not a lot of sparks flying, welding and molten steel going on in a Tesla plant," he said. "It's pretty clean and robotic."
Those employed would fall into two groups, those with advanced management and engineering backgrounds, and skilled labor. Also, he noted that construction of a plant would require a substantial force of workers from the building trades.
Austin Business Journal reported Monday that Tesla may also relocate its headquarters to Austin, following Musk's ongoing conflict with California lawmakers over COVID-19 policies.
Transportation was clearly an issue in the location of GM and Toyota plans in Arlington and San Antonio, respectively. I-35, I-30 and I-20 are all near Arlington, and I-35 and I-10 converge in San Antonio. The proposed Tesla site adjacent to SH 130 is clearly at an advantage. "That is a yet-to-be maxed-out highway, and gives access both north and south." To the north, SH 130 connects with I-35. To the south, it intersects with I-10, running east and west. Rail service has not yet been discussed, he said.
Not yet known is the ultimate capital investment Tesla will make in the site in the plant and its equipment, but a source called it "staggering." In a presentation prepared for Tuesday's meeting of the Commissioners' Court, the court's staff said the real property investment was $410,316 and the personal property investment, apparently the building and equipment, would be $682,294—for a total of $1,092,610 over 10 years.
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Popular
(Pixabay)
This Gemini season, starting today, is appropriately paradoxical, twisting and blending simple concerns with life’s bigger, faster and more fiery quests.
Shortcuts: Aries, Taurus, Gemini, Cancer, Leo, Virgo, Libra, Scorpio, Sagittarius, Capricorn, Aquarius, Pisces
On Sunday, May 29, we’ll experience one of the year’s biggest calls to adventure in the Mars/Jupiter conjunction—a potent duo whose combined force will start to be especially strongly felt when Mars moves into Aries on May 24. Contrastingly, Mercury, the ruler of Gemini, will keep our mental temperament grounded and steady as they move slowly through the sensual, materially-oriented sign of Taurus for most of the month. These contrasting forces might be tricky to weave together—read ahead for tips on how your sign can find the right approach this month!
Gemini: May 21-June 20
Welcome to the season of your Solar Return, Gemini! This month will set the stage for your whole coming year, so it will be great to start it off on the right foot. The most important bit of cosmic context is Mercury moving slowly till the end of the month in the grounded sign of Taurus. This is an encouragement to savor your questions and conversations with the world, without needing to rush to answers and to mull over the elemental, fundamental aspects of your life. It would be great to give yourself perspective, especially by experiencing new environments and by moving through the world in a new manner. Allow yourself to be surprised! You might loosen some of your hardened beliefs, but don’t discount the trustworthiness or substance of the new ideas you may stumble upon.
Cancer: June 21-July 22
For you, Cancer, the paradoxes of Gemini season have to do with inwardness and outwardness. On the one hand, you can expect your inner world to be as active as ever, swirling with meaningful thoughts and experiences needing to be digested. On the other, this month features a strong call to get out of your shell, open up to the world at large, and bravely share yourself—perhaps even in an unprecedented way! In transitioning between these extremes, the Moon can be as good a guide as ever—heading into and out of the New Moon on the 30th, you might focus on articulating and envisioning this burgeoning impulse and nourishing the terrain for its growth. As we ramp up to the full moon on the 14th, you might find small ways to embody, communicate and make real this developing dream.
Leo: July 23-Aug 22
This Gemini Season is particularly intense for you, Leo, as it calls forth both a fiery, hungry spirit and a more serious, dedicated energy, aware of life’s hardships and limitations. These impulses herald a summer of growth and maturation, which would be great to get a good jump on. Just don’t let this process make you too heavyhearted or self-involved! Your friends, community, and experience of the broader social world at large can help soften and clarify this strong, fiery self that’s metamorphosing. You might rely upon this bigger, human perspective to help you progress smoothly and gracefully. Although it might require some extra humility, taking yourself less seriously can be a superpower. A lighthearted approach can be extraordinarily efficient and effective. It might be paradoxical, but consider that relying on a bigger, greater power than your own is your path to individual fullness.
Virgo: Aug. 23-Sept. 21
This Gemini season brings a charge for you to expand into more substantive and serious subjects, Virgo. Especially if you feel you’ve been playing small, this will provide an opportunity for you to grow into more meaningful and demanding work in the world. At times, this will feel hectic and harsh—there will be no shortage of fire this month. You, as much as anyone, though, can help find the right place and time for that fire, directing it where there’s a need for more energy and oomph. Lightheartedness can be really helpful in navigating and dancing with this heat—with a bit of humor and perspective, you can respond and adapt quickly and gracefully. By the end of the month, you should be able to feel like your view of and faith in the bigger picture has expanded.
Libra: Sept. 22-Oct. 23
This Gemini season will provide ample opportunities for you to learn and grow through your relationships, Libra. We’re really looking at the full spectrum of potential experiences here—on the one hand, Mars’ entry into Aries can ignite flammable subjects, and people are generally likely to be on edge, assertive and protective. On the other, Venus’ conjunction with Uranus toward the end of the month can bring unexpected encounters and new forms of relationship into play. Throughout all of this, there’s a theme for the next year of growth through fiery, direct relationships. This is a step beyond just keeping the peace which may be discomforting, but consider that it may take your relationships to incredibly satisfying and enduring places.
Scorpio: Oct. 24-Nov. 21
This Gemini season brings opportunities for sharpening both your wits and tools, Scorpio, although this may feel like a trial by fire. Although they may feel particularly urgent and exciting this month, many of these challenges and opportunities will last throughout the summer, so take your time to get your focus clear and settle into a groove. The real challenge and potential this month have to do with navigating subtle, intricate dynamics so that you aren’t flustered and know exactly where to put your effort. In order to develop this discernment, you can definitely rely on trusted allies, who can act as mirrors, triangulation points and simple safe havens amid the storm. This is a strategic necessity, but be sure to give thanks and enjoy the simple goodness of companionship, too!
Sagittarius: Nov. 22-Dec. 21
The sharp, powerful impulses and stimulation of this Gemini season are pushing you to the development of your free will, Sagittarius—a spirit of playful, proud independence and spontaneity. There are a couple of ways that you might think about this. First, that courage is necessary to truly live out your convictions and ideals, as well as a way to ultimately best serve the world. Truth isn’t always soft or easy. On the other hand, this isn’t too complex and is keyed to cutting through stagnation. There’s a sort of simplicity and instinctive wisdom that you can draw upon and develop into this month, letting things happen. If you need to, you can think of this as an act of trust, or faith in a basic goodness and natural, flowing order of things.
Capricorn: Dec. 22-Jan. 19
The motion and activity of this Gemini season can quickly develop your values and taste, Capricorn, as you strip back ordinary and inherited ways of thinking and open your eyes to life’s beauty. This simple and vibrant beauty will stimulate your desire to savor life’s goodness and strive for the highest quality experience possible. Along the way, your fixed, limited ideas about what is possible can fall away, even as the new and extraordinary may require incredible strength and devotion from you. Although these are lofty ideals, they’ll have a lot to do with your tangible, everyday experience of your body and sense of home—this is a primal, almost wild energy being rekindled. Alongside this intense fire comes a certain risk, so make sure to enter into this new adventure step by step, without injuring yourself or anyone else.
Aquarius: Jan. 20-Feb. 18
This Gemini season can help you learn how to feel more rooted and alive in life’s simple aspects, Aquarius. Although this can certainly take place in tandem with new teachers, these don’t have to be big gurus—rather, your curiosity, delight, and common sense might be the best guides. In this regard, your quality of perception, thought and the well-being of your inner child can all make great strides. Through the first part of the month, this will likely feel exciting and overwhelming. As we approach our new moon, though, you can get a better sense of where you need to be settling into more focus and definition in your life. This back and forth between a growing sense of clarity and inner authority and a stronger capacity to be firm and to the point will continue to deepen throughout the summer.
Pisces: Feb. 19-March 20
This Gemini season is focused on helping you develop a stronger sense of connection to the world around you, Pisces. Although this can take place by rearranging and bringing more life into your body and environment, an initial spirit of fresh possibility and willingness to release what is stale and outgrown is a necessity. In doing so, you can land upon a greater sense of capability and being resourced for life’s adaptations and evolutions. This will certainly be a month of growth in your material world and relationship with your body, but the serious litmus test is how settled you feel internally—the quality and clarity of your thoughts and inner world. Ideally, though this summer you’ll develop a stronger trust in yourself and an easier interface between your inner riches and outer quality of experience.
Aries: March 21-April 19
The Mars/Jupiter conjunction is especially important for you, Aries, as it happens in your home sign. This signifies a spark of expansion that will play out over the coming year. Here, Jupiter is calling you into new ventures and adventures, to level up and act on the big dreams and desires brewing inside of you. Thus, this month is a great time to initiate some bigger change, to take some jump, leap or healthy risk. Although you don’t want to let this moment slip away, please don’t get impulsive or headstrong—make sure you’ve got at least a bit of a plan. Ideally, whatever you’re aiming at will require a good bit of care, and you can expect that much of this opportune, fertile energy will continue and develop throughout the next year.
Taurus: April 20-May 20
The start of the coming month will challenge you to keep up the pace, Taurus, so that it can consolidate into a healthy rhythm. Finding the right stride, you can find yourself breathing more easily, and maybe let yourself loosen your grip or take your hands off the handlebars, trusting your sense of balance and the strength in your legs. This can set the stage for an opportune spell at the end of Gemini Season, as your ruler Venus makes a conjunction with Uranus—you might keep an eye out for spontaneous side adventures, ways to create space for synchronicity, or simple moments where life is calling you into new ways of being. Ideally, these will feel like clear upgrades, but if you need to think of them as experiments or trial runs, that’s totally okay, too.
(Moriah Wilson/Instagram)
Austin police have charged Kaitlin Marie Armstrong, a local cyclist, for the murder of Moriah "Mo" Wilson.
Wilson, a rising star in the gravel and mountain bike community, was found dead with gunshot wounds inside an East Austin home on the night of May 11 when she was in town for the weekend Gravel Locos race in Hico, Texas.
Police believe Wilson was having a relationship with a man Armstrong was also in a relationship with. The man, another gravel cyclist, Colin Strickland, has since issued a statement on the murder.
In his statement, he said he had a brief romantic relationship with Wilson in October 2021 before he resumed his relationship with Armstrong, but that he remained friends with Wilson. "There is no way to adequately express the regret and torture I feel about my proximity to this horrible crime. I am sorry, and I simply cannot make sense of this unfathomable tragedy.
NEW: Austin professional cyclist Colin Strickland has just released a statement about the murder of cyclist Moriah Wilson, clarifying his relationship with her and expressing “torture about my proximity to this horrible crime.” pic.twitter.com/KnIna3mWrE
— Tony Plohetski (@tplohetski) May 20, 2022
Wilson, a 25-year-old Vermont native living in Colorado, had won a slew of races becoming a fan favorite. She had just become a full-time racer this year.
Anyone with information on this crime can contact Austin police at 512-974-TIPS or contact Crime Stoppers anonymously at 512-472-8477.
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