Holy crap!! As I was getting my cup of coffee this morning
at my local 7-11 around 5:20, I happened to read the front page of the Statesman,
it said, “Apple deal 'in peril' over delays in approving incentives.” Are you
kidding me! I actually had to stop and read it again to make sure I caught that
right.
Ok,
Travis County Commissioners Court, what is the big deal? Companies, like Apple,
don’t just decide one day to build huge campuses and offer to a city and county,
3600 jobs over a ten year period, without some kind of tax incentives thrown in
to sweeten the deal for them, the company. In my research today I did find that
Austin apparently strives itself on the ability to get companies to relocate
here without offering many incentives. But come on! It’s not like Apple is
asking for all that much from Travis County as far as I’m concerned.
Here is
the deal: Apple wants to invest $304 million dollars on a facility here in
Austin and in the people of the greater Austin area. Decisions like that are
not made lightly and require years of research, development and capital. The
total government incentives that Apple is looking for is $21 million from the
state’s Texas Enterprise Fund, which is, “A ‘deal closing fund’ that has the
flexibility and financial resources to help strengthen the state’s economy”,
according to Governor Rick Perry’s site. The deal on the table is also for $8.6
million in tax incentives from the City of Austin, and here is the hang up, the
$5.4 – $6.4 million from Travis County. Like I said, not really a drop in the
bucket, compared to the total money invested by all of the parties involved and
the huge boost in our local economy.
Now, I will play devil’s advocate for
a moment and give the “other side” its fair shake. According to the Statesman,
“Bill Aleshire, an attorney and former Travis County judge, and Ed Wendler, an
Austin-area developer, picked through the county's draft final contract with
Apple, pointing to parts of the contract they said will allow Apple to fall
short of the requirements by the Commissioners Court. 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,"
Aleshire said. "I just thought that was a major flaw. It showed up in
several ways in several places." With that being said, I don’t understand
why anyone would wait to bring up flaws this late in the game, after the
Commissioners Court already gave the deal their blessing back on April 17th.
Well that’s all the time and room I’m
going to give the other side. I thought I should be fair though, and let you
the reader, make a decision based on fact, not just my opinions. I am all about
corporate expansion and the creation of jobs though. Especially, the entry-level
help-desk workers that this deal promises to employ and not to mention all the trades jobs this kind of a deal brings to an economy. Everyone has to start
somewhere, and Apple is saying that the jobs will pay around $34,000 a year.
Not bad, especially when you are one of the approximately 7% among our
unemployed. Those wages will pour so much more money back into this economy
then Apple could ever take out.
I’m
also for the tax breaks and incentives that a government must provide,
especially in this day and age, to those companies that want to expand. Apple
could go anywhere they want, they are choosing here, I would hate to hear that
the deal fell through based on a $5-6 million question that no one really has
the answer to. If the attorneys for both sides can come to an agreement that
works for everyone, then great! But let us not lose the deal over attorney word
jockeying.