Updated Oct. 8, 9:15 p.m. A bid for Texas Instruments' newest chip-manufacturing facility was advanced tonight when Richardson City Council members voted unanimously to amend an existing agreement that would reduce the company's annual property-tax payments. If the company chooses to expand its current Richardson facility, the city would reduce property taxes on the second phase of development within the designated "tax abatement reinvestment zone" at West Renner and Alma roads. The agreement stipulates that property taxes would be abated for Phase 2 business personal property—a category that includes items such as computers, machinery or other movable goods—by 75 percent annually for up to 15 years. The city would also uphold a piece of the original deal that reduces Texas Instrument's real property taxes—or taxes levied on real estate—by 75 percent annually over a 10-year period. Deputy City Manager Don Magner said the company is estimated to invest between $1 billion to $3.4 billion in buildings and manufacturing equipment over the course of the agreement. Combined with the existing facility, Magner said the company expects to employ around 1,600 workers at its Richardson site. Established with Texas Instruments in 2003, the original unified tax-abatement agreement—formed in tandem with Collin County and Collin College—included two phases of development. Phase 2 was not completed by the Dec. 31, 2015, deadline due to several factors, including the state of the U.S. economy at the time, Magner said. Texas Instruments said now is an opportune time to expand its manufacturing capabilities for chip technology, which in 2017 accounted for 89 percent of the company's revenue, Magner said. The proposed 864,000-square-foot expansion would include a chip-manufacturing facility and a parking garage, according to city documents. Collin College board members and Collin County commissioners are expected to also take action on the amendment at upcoming meetings. An official spokesperson for Plano ISD said its board does not expect to take action on its respective incentive application for several months. City Manager Dan Johnson called the opportunity "competitive," noting that Texas Instruments is also considering another location within the U.S. and one abroad. Plano reporter Gavin Pugh contributed to this report. Posted Oct. 8, 12:50 p.m.

Vote on tax incentive deal for $3.2B Texas Instruments expansion project on tonight's Richardson City Council agenda

Richardson City Council members tonight will hold a public hearing and consider incentivizing Texas Instruments to expand its North Richardson facility by amending a 2003 economic incentive agreement that reduces the company's property tax payments. Up for a public hearing and council consideration is an ordinance that would designate a new, 92.4-acre "tax abatement reinvestment zone" at the northwest corner of West Renner and Alma roads, where the company's existing chip manufacturing plant is located, according to the council agenda item. Through approval of the agreement with the city of Richardson, Texas Instruments would make property tax payments based on a reduced assessed value determined by the Collin County Appraisal District. In a separate agenda item the council will consider amending a 2003 tax incentive agreement with Texas Instruments. Plans for a Phase 2 expansion were included in the original deal; however, the project was not constructed during the time period outlined in the agreement's terms. Therefore, the company must be granted a new incentive, the resolution says. The joint resolution also includes Collin County and Collin College. In August, Community Impact Newspaper reported that the Plano ISD board of trustees approved an application for a similar agreement with Texas Instruments—one that would cut property taxes payments by $100 million  over the span of a decade. The $3.2 billion project would bring an estimated 650 new jobs to Richardson by 2030, 25 of which would earn an annual salary of $117,589, according to the PISD application. Construction on the expansion—which will include a 864,000-square-foot chip-manufacturing plant, a 317,000-square-foot "clean room" and a parking garage—could begin next year, with commercial operations beginning in the first quarter of 2022, the company said. Plano reporter Gavin Pugh contributed to this report.