After more than two hours of public speakers on the subject, Austin City Council revamped future economic development incentive agreements at its Oct. 24 meeting by establishing eligibility standards for applicants to fulfill so they can take part in the program.
The topic was a contentious issue, with more than 250 people signed up in favor of it, though very few were signed up to speak against it. In particular, speakers focused on the requirement of a prevailing and living wage in order for a business to be eligible for an incentive agreement.
"This is not about trying to stop, stifle or hurt job growth or the economy," said Councilman Mike Martinez, who sponsored the resolution. "In fact, it's the exact opposite. It's about creating the jobs we need in Austin with the companies that we need here in Austin, who understand the values we are trying to impart in this policy."
The resolution created a matrix for staff and council to use to approve incentive deals. Part of that matrix criteria includes requirements for an applicant to provide a prevailing wage for construction workers. For prevailing wages that fall below the city's living wage, companies applying for an economic development incentive must provide a living wage for construction workers. The resolution also requires the applicant to provide at least a living wage for full-time employees and contract employees.
