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Travis County commissioners to consider $14.7 million economic incentives deal for $1 billion Tesla factory
Travis County commissioners will hear from county staff, Tesla representatives and residents on Tuesday about whether they should approve an economic incentive deal that would save the electric carmaker $14.7 million in property taxes over 10 years and generate 5,000 jobs.
Tesla has proposed a $1 billion "Gigafactory" to be built on a 2,100-acre site in Southeast Travis County. Founder Elon Musk tweeted Thursday that the company has an option to purchase the site from its current owner, construction supplier Martin Marietta, but has not yet done so.
Staff will give a presentation—which was made public earlier today—to commissioners on the proposed agreement. Tesla representatives will also present to the court.
If approved, the factory would employ 5,000 middle-skill workers with an average annual salary of $47,147 and "full benefits," including health insurance and paid parental leave, according to the staff presentation.
These middle-skill jobs are particularly needed in Travis County, where most job creation, pre-pandemic, served highly educated workers who moved to Austin from other places—and not low- and middle-skill residents looking for work.
In addition to job creation, staff estimates the new factory will generate more than $600 million in sales activity annually and spur new jobs, firms and economic activity "from the ripple effects of Tesla," per the presentation.
In exchange, commissioners would approve a deal that would see Tesla rebated 80% of its property taxes to the county for a period of 10 years.
The total property tax that Tesla would pay Travis County is estimated to be $21.7 million over 10 years, of which $14.7 million would be returned if the company passes an annual compliance review conducted by a third party.
This equation "results in a substantial benefit to the community and a net fiscal benefit to the County," staff wrote.
Travis County hired Jon Hockenyos, president of the local economic analysis firm TXP, to conduct a financial impact analysis on the proposed deal.
In his review, Hockenyos concluded: "There is a highly competitive global environment for projects of this scale and scope that typically requires incentives from state and local governments to secure relocation," he wrote.
Travis County Public Information Officer Hector Nieto said commissioners do not intend to take any action on the proposed agreement on Tuesday.
Earlier this week, union representatives called into a Commissioners Court meeting to raise concerns about Tesla's "troubled history with taxpayer subsidies."
In addition to applying for incentives through Travis County, the company is seeking nearly $70 million in subsidies from Del Valle ISD over the same 10-year period.
The proposed factory site is also within Austin's taxing jurisdiction, but the company reportedly will not be seeking economic incentives from the city.
In an email to Austonia, a spokesperson said that the city does not comment on economic development prospects.
"However, we are not surprised that an innovative technology company like Tesla is interested in opening a facility in Austin," he wrote. "Austinites win when our area features many major employers offering stable, mid-level, and strong paying jobs – as well as procurement opportunities for local businesses."
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Six weeks into the federal COVID-19 vaccine rollout, the number of Ausinites who have received a shot—or two—is growing, with recipients reporting immense relief and sharing happy selfies.
Carly Hatchell, 25
<img lazy-loadable="true" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTUwNzk1NC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0MjE1ODcyM30.1Z8vDzZp-2FpKTXQAGAS4PE3Zmy5i7IGq5LBhTFQwvU/img.png?width=1200&coordinates=0%2C420%2C0%2C420&height=800" id="ec5ec" class="rm-shortcode" data-rm-shortcode-id="784f573e7e59226846176634e901f648" data-rm-shortcode-name="rebelmouse-image" data-width="1200" data-height="800" />(Carly Hatchell)
<p>Like most early vaccine recipients in Texas, Carly Hatchell is a frontline healthcare worker. As a psychiatric research associate at Dell Medical School and Dell Children's Medical Center, she received her shot from UT Health Austin, the medical school's clinical arm, which was the first provider in Travis County to receive doses from the state.</p><p>Hatchell received her first shot on Dec. 18, during the initial week of the rollout, and her second shot earlier this month. "I was very clear on my decision," she told Austonia. "Public health is a big interest to me. I actually served as a contact tracer earlier on in the pandemic."</p><p>Other than some soreness in her arm, she didn't experience any other side effects.<br></p><p>Hatchell described her vaccine experience as bittersweet, mostly because although she is now protected most people around her are not. "I have parents (in Houston) who are retired and older, and I know it's really difficult for them," she said. "I kind of wish I could share my dose with them."</p><p>Until most people are vaccinated, Hatchell is planning on operating as though she isn't. "I do feel confident that I am at less risk," she said. "But I haven't reduced my precautions just because we don't yet have the data (about long-term protections)."</p>Tom Madison, 43
<img lazy-loadable="true" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTUwODE0Ni9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0OTg4MTkzMX0.Iy6vqa1O2lVbX-0wE1pmCFn6zBYgxDUJfop9XNu60GM/img.jpg?width=980" id="6e343" class="rm-shortcode" data-rm-shortcode-id="0c8732e6c36a94506fc53df3dd2ce2d7" data-rm-shortcode-name="rebelmouse-image" data-width="480" data-height="600" /><p>Tom Madison is a lieutenant in the Austin Fire Department and the husband of Austin City Council Member Natasha Harper-Madison, who has lupus and is a breast cancer survivor, putting her at high risk of death from COVID.</p><p>Because of Madison's job, where he runs the risk of exposure on every shift, he moved out of <a href="https://austonia.com/austin-fire-coronavirus" target="_blank">his family's home in March</a>. Now that he has received both shots of the vaccine, he feels safer—but is still cautious. </p><p>"I'm still staying in the trailer next to the house," he said. "So we're still social distancing from one another because (Austin-Travis County Interim Health Authority) Dr. (Mark) Escott told my wife that we should do it until she gets vaccinated." </p><p>In the meantime, Madison has helped administer vaccines at the Delco Center, where Austin Public Health has hosted mass distribution events. "It was a huge operation," he said. "People waited in line for hours. When they go in there, they were so appreciative. It was nice to see."</p>Nancy Kahn, 64
<p>Nancy Kahn is a nurse who works for a very small company that wasn't able to provide her access to a vaccine. So she began searching for an appointment anywhere she could find one, including a pharmacy in New Braunfels that she heard had one vial—with 10 doses—for healthcare workers. After waiting on the phone for an hour, she snagged a spot at Austin Regional Clinic. "I got lucky," she said. </p><p>Kahn's husband falls in the 1B group as someone who is over 65 years old and who has had cancer twice. So far, she has enrolled him in three waitlists. "He's number 3,000 at one place. He's 600 at another place," she said. "At ARC, I don't know what number."</p><p>Still, Khan is optimistic. "I've got a sister in Arizona and a brother in Illinois," she said. "There's no talk of 1B (eligibility in those states). So it could be worse."</p>Stephanie E., 35
<p>Stephanie E., who works for a law enforcement agency with a no-media policy and asked that her last name not be used, was surprised when her employer offered her a vaccine because she has worked from home the entirety of the pandemic. "There was a lot of guilt," she said. "But I'm also 35 weeks pregnant now. It's not likely they were going to give my dose to a teacher or anything, so I went ahead and did it."</p><p>E.'s midwife and maternal-fetal medicine doctor told her they couldn't encourage or discourage her from getting vaccinated because of the limited data. But she wasn't concerned. "If Dr. Fauci gets it, then it seems safe," she said, adding that she feels better about her upcoming hospital stay—when she'll give birth—knowing that she has an extra layer of protection.</p><p>Now vaccinated, E. hasn't let down her guard. With three kids at home, including an 11-month old, she and her husband continue to be cautious, avoiding visits with even extended family. "They're going to meet two babies at once," she said.</p>Capri Conlon, 29
<img lazy-loadable="true" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTUwNzk2NC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2ODI3MTkyNH0.yLnRFz4NuS0DXcco02pQngPC-2cP_LW2N7oAWuset4Q/img.jpg?width=1200&coordinates=0%2C635%2C0%2C635&height=800" id="2c42c" class="rm-shortcode" data-rm-shortcode-id="d4c1cb0bcd2dd03ece42f6e712bcd37d" data-rm-shortcode-name="rebelmouse-image" data-width="1200" data-height="800" /><p>Capri Conlin is a nurse practitioner for Dell Children's Hospital. Last month, her employer sent out a sign-up link to all eligible employees, but Conlin's name was accidentally left off of it. Luckily, it was a quick fix and she received her first shot on the same day as Hatchell, in mid-December. "There's finally a light at the end of the tunnel," she said after receiving her second shot. "It feels surreal." </p><p>Conlin's patients are children and most of them are immunocompromised. As a result, she has changed her way of life to ensure she doesn't put any of them at risk of contracting COVID-19. </p><p>"Getting the vaccine, it just felt like a big relief," she said. "I just know going into my patients' room I'm not putting them at risk anymore."</p>Lynne Wiesman, 61
<p>Wiesman is a professor at Austin Community College, where she teaches American sign language interpreting. Before the pandemic, she also worked often as an interpreter in area hospitals. </p><p>Although the state of Texas did not include interpreters in group 1A, a local agency successfully advocated for interpreters to be prioritized in Travis County because of their work on the front lines. </p><p>As a result, Wiesman was able to make an appointment to get vaccinated after someone shared the number for a triage nurse at ARC on a private FB page for interpreters. "I do anticipate going back to (work in) hospitals," she said. </p><p>But first Wiesman needs her second shot, which is scheduled for early February. "They've assured us (there will be enough doses)," she said. "That's the only thing that I have a slight concern about." </p><p>Wiesman opted out of taking a photo of herself having received the vaccine. She says she didn't want to rub it in the face of less privileged people who wish to be vaccinated. </p>- COVID vaccines in Austin and where to get on a waitlist - austonia ›
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Turns out, celebrities enjoy Stubb's BBQ just as much as the rest of Austin. Recent Texas transplants Joe Rogan and Elon Musk were spotted along with Dave Chappelle and other celebrities at the popular Texas venue for a night on the town.
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With the first overall pick, Austin FC is likely to choose Clemson midfielder Philip Mayaka, a promising Generation adidas signee.
As Major League Soccer's only expansion team this season, Austin FC will receive first pick in all three rounds of the MLS SuperDraft on Thursday.