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Tesla to Travis County: Austin is at the top of our list, but we need a 20-year tax rebate deal

The Model Y is one of two Tesla vehicles that would be produced in the proposed Austin factory.
Travis County is at the top of Tesla's list of possible locations for a new "Gigafactory," a representative for the electric carmaker told Travis County commissioners yesterday—it also wants a 20-year break on property taxes.
The meeting marked the first time a proposed $14 million economic incentives deal—which would see Tesla build a $1.1 billion factory in Southeast Travis County, hire 5,000 workers and receive a significant county property tax rebate for 20 years—was discussed publicly.
Rohan Patel, Tesla's senior global director for public policy and business development, told commissioners that Travis County stands out among other contenders, such as Tulsa, despite Texas' burdensome property taxes.
This is a particular concern for Tesla, Patel explained, because the company relies on "some of the most expensive equipment on the planet," which contributes to its state property tax bill.
"The incentives here in Texas and Travis County would not be a reason for us to choose this location … but they are a prerequisite to make the economics of a factory work," he said.
Tesla looks to fast-track approval of an Austin 'Gigafactory' (Video by Ethan Hunt)www.youtube.com
A long-term deal
Documents published in advance of the meeting provided tax estimates for only 10 years, but at the meeting Diana Ramirez, director of economic development and strategic investments for the county, and Patel confirmed that the company has requested a 20-year rebate term, the same as an earlier agreement between the county and Samsung.
Competitors have offered Tesla better terms, Patel said, but Travis County stands apart because of its diverse workforce, a potential partnership with Del Valle ISD and the opportunity to transform a mining site into a sustainable factory.
Travis County staff have negotiated a proposed deal that would see Tesla pay its full property tax bill to the county each year and, if it complies with the agreed-upon terms, received an 80% rebate for 10 years and then a 60% rebate for another 10 years following.
Tesla is also negotiating a separate $68 million economic incentive agreement with DVISD.
For and against
More than 40 people signed up to speak on the proposal during the public comment portion of the meeting.
Ed Latson, executive director of the Austin Regional Manufacturers Association, said large manufacturers such as Tesla are most able to move the needle on job creation. "I think what's before us and what's before you, is an opportunity to change generations," he told commissioners.
But many also spoke in opposition to the proposal, raising concerns about Tesla's troubled history with public subsidies, barring entry of state safety inspectors into its factories and flouting of shelter-in-place rules.
Jordan McCray, a resident, asked, "How can we provide public subsidies to a company that has demonstrated such disregard for the rule of law and the safety of its workers?"
The Commissioners Court will take up the deal again next week and may vote on it, County Judge Sam Biscoe said.
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Popular
COTA's multi-turn track is more challenging than it looks, says Austonia's Claire Partain. (Laura Figi/Austonia)
Few of us will ever feel the thrill of whipping through Circuit of the America's 23-turn track at the 220+ mile per hour speeds of Formula 1 racers. But thrill-seekers still rev their engines at COTA thanks to its go-kart track and ziplining service.
Here's what to expect when go-karting at COTA firsthand from Austonia's Claire Partain.
1. Go for the package deal
(COTA Karting/Twitter)
Schedule ahead of time online. A 10-minute race at COTA's karting track is $35, and tacking on a ride on the zipline is just $5 more. Go big or go home.
2. Get your gear on
Go-karting gear includes a head sock and helmet. (Laura Figi/Austonia)
The track is located just off the COTA Boulevard entrance near the main course. Get to the track before your race is scheduled to start so you can watch the training video and try on a helmet and a head sock, which functions like a ski mask and goes on under your helmet. It's somehow even less cool-looking than it sounds.
3. To the track
Head to the track! Attendees will pick out a kart for you and make sure you're all strapped in. The first round is a slower round, but people start slamming on the gas pretty much immediately.
4. On the track
Track time! (Laura Figi/Austonia)
These go-karts go up to 55 mph, and some turns (including the traffic-inducing second-to-last curve) were kind of tough to navigate. Other than avoiding barriers, the most unexpected obstacle I had was avoiding other go-karters who had crashed. Passing people is exhilarating, but don't be the annoying driver who passes people on a hairpin curve either.
When crashes happen, all of the karts are programmed to sputter and slow down, so don't panic like I did and ask why your kart has stopped going fast. Move to the side and wave your hand to get help if your go-kart malfunctions otherwise.
5. Revel in your victory
(Laura Figi/Austonia)
Karting is a great way to find out who's the Lewis Hamilton of the family. At the end of the race, COTA will email you your results and give a breakdown of your fastest lap times. There's also a podium for those of us who win the race (I got sixth).
5. The zipline
The zipline takes you up above both the COTA and karting track. (Laura Figi/Austonia)
After you've had your taste of adrenaline, get some more at the nearby zipline ride. Unlike traditional ziplines, this route has two seats that take you up and backward before bringing you back down. Grab some quick views of the entire track and hold tightly onto your phone while up top. Other than that, it's a pretty smooth ride.
(Laura Figi/Austonia)
Happy karting!
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Willie Nelson's Fourth of July picnic made a comeback at Austin FC's Q2 Stadium Monday night. (Q2 Stadium/Twitter)
Q2 Stadium swapped its Verde for red, white and blue as country music legend Willie Nelson returned for his first in-person Fourth of July Picnic since 2019 on Monday.
The music fest included fireworks, fun merch and acts from country greats including Charley Crockett, Midland, Brothers Osborne, Allison Russell, Tyler Childers, Jason Isbell and Austin's own Asleep at the Wheel. And while Q2 will have some kinks to straighten before it becomes a concert-hosting regular, Nelson's unifying spirit kept things cool during the 12-hour outdoor event.
Midland performed at Willie Nelson's Fourth of July Picnic. (Q2 Stadium/Twitter)
Doors opened at 11 a.m., and Asleep at the Wheel was on the stage by 12 p.m.—though as one Reddit post pointed out, there weren't many people there to see them play.
Q2 Stadium stayed sparsely populated for the first half of the day. (Claire Partain/Austonia)
Per Q2 Stadium policy, attendees weren't allowed to re-enter the venue after leaving, so anyone who wanted to watch both an afternoon and Nelson's big performance were stuck at the venue for hours straight. That opened up the perfect opportunity for customers to snatch up snacks, water and beers, which emptied wallets even faster than at Austin FC games. Nothing says "the end is nigh" like $15 beers.
An open-air, 20,500 seat venue, Q2 Stadium sometimes struggled to carry sound clearly, and between-song banter was often limited to an incomprehensible garble. Still, Tyler Childers' commanding growls came through, Alison Russells' multi-instrument ensemble shone and Nelson's strums on his trusty guitar, Trigger, were front and center by the end of the night.
Fans found it hard to look away from Tyler Childers' enrapturing performance. (Jakob Rodriguez)
The July 4th picnic, which was most recently held at Circuit of the Americas from 2015-2019, benefitted from Q2's more central location, and the large venue offered plenty of room for attendees to mull about.
As the sun mercifully dipped below the horizon, the music paused for a 15-minute fireworks show.
But the July 4th staples weren't the main event. At 89, Nelson didn't disappoint, sitting calmly as he performed alongside his family members and even gubernatorial candidate Beto O'Rourke, who made a surprise appearance midway through the show.
.@BetoORourke and his son just joined @WillieNelson on stage for his annual 4th of July picnic in Austin pic.twitter.com/2kgr5yDogG
— Jeremy Wallace (@JeremySWallace) July 5, 2022
At times wistful, joyful or both, Nelson took the crowd through hits from "On the Road Again" to "Always on My Mind."
And as each favorite was played, all of the heat and stress of the day were encompassed by Nelson's voice, his storytelling and more as Austinites new and old gathered for the decades-old tradition.
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