The Charles Schwab Corp. plans to expand its presence in Austin by adding 823 new jobs and investing $210 million during the next 10 years, Gov. Rick Perry's office announced July 24.
The state's $4.5 million grant for the company is contingent upon approval of a local incentive agreement by Travis County. Commissioners will discuss a draft incentive agreement July 29 and consider voting on the agreement Aug. 5.
The San Francisco–based company already has about 1,000 employees based out of its facility at 12301–12401 Research Blvd. Charles Schwab first opened a branch office in Austin in 1982.
"We have deep roots in Austin, and it's a great place to live and work," said Sarah Bulgatz, Charles Schwab's director of public relations. "We have the ability to recruit from among a well-educated workforce, and we like the business-friendly climate."
Documents released by Travis County indicate the company will construct a new facility between 200,000–300,000 square feet in size on 50 acres of land in the county's Precinct 2, which includes portions of North, North Central, Northeast and West Austin. The investment would increase the tax base for Travis County, the city of Austin, Austin ISD, Austin Community College and Central Health.
Bulgatz said details of the company's proposed expansion, including an exact location of a new facility, in Austin are contingent upon the county's approval of the incentive agreement.
If Travis County approves the performance-based grant, Charles Schwab would receive a 48.5 percent rebate on ad valorem property taxes for its new facility plus an additional 5 percent rebate if the company achieves Leadership in Energy and Environmental Design status for the building, according to county documents. The county estimates the grant amount would be about $3.6 million for the 10-year period.
The average salary of the new jobs will be $79,602 with the lowest 10 percent of job salaries averaging $39,733. The county will require an $11 per hour wage floor for construction workers of the new facility, according to county documents.
Charles Schwab also announced plans to create 445 jobs in El Paso and invest $21.5 million. The state will provide a $1.45 million grant for the El Paso project.
"Texas has focused on creating an economic climate that grows all industries, from high-tech to energy to financial services, through our combination of low taxes, smart regulations, fair courts and a skilled workforce," Perry said in a news release. "These [Texas Enterprise Fund] investments in Schwab are the latest in a long line of expansions in El Paso and Austin that will create hundreds of jobs and opportunity for Texans."
According to the governor's office, the state has invested almost $560 million through the TEF in companies to create about 75,000 jobs and invest nearly $24 billion in the state. The fund was created in 2003 to promote job growth in Texas. Visit the TEF website for more information.
