[Updated 9:15 a.m. Feb. 7 to provide information on the Texas Enterprise Fund]
The city of Austin announced Feb. 6 that it will consider economic development agreements with two California-based companies that would create a total of 640 new jobs.
Private security firm Websense and file-sharing software company Dropbox would invest a combined $15 million for a total $2.35 million net benefit to the city, according to the city's Economic Development Department.
"We're pleased that two outstanding companies are considering investing in Austin and creating job opportunities for Austin workers," Economic Development Director Kevin Johns said in a news release. "Websense and Dropbox's proposed investments would support the diversification and strategic growth of Austin's economy."
The governor's office is also planning to offer Websense $4.5 million from the state's Texas Enterprise Fund for its investment and offer Dropbox $1.5 million. The TEF is designed to promote job creation in the state, and offers are contingent upon local incentives.
If City Council approves the incentive deals, these companies would represent the second and third economic development agreements approved in 2014. On Jan. 30, City Council approved a $679,000 incentive deal with athenhealth Inc. for its expansion in the Seaholm redevelopment project.
In 2013, the city approved only one incentive deal, for $1.7 million with National Instruments, to build a research and development center and hire 1,000 new employees.
Websense, based in San Diego, would relocate its headquarters to about 90,000 square feet of space at 10900-B Stonelake Blvd., in North Austin, according to its business information form, or BIF, submitted to the city. It would hire 470 new employees with an average wage of $82,000.
The project completion date is estimated by the end of 2015, and the company would receive about $438,000 from the city in the form of a performance-based grant.
Dropbox, headquartered in San Francisco, is considering expanding its downtown Austin office, which it recently opened and is in the process of hiring 30 people, according to its BIF. The company is seeking office space for about 30,000 to 40,000 square feet to expand and hire about 170 new jobs with an average annual wage of $59,000. Dropbox would receive about $244,500 from the city in the form of a performance-based grant.
A presentation to city staff will take place at 10:30 a.m. Feb. 13, and the public hearing on the two proposals will be at 1:30 p.m. Feb. 20. Both meetings will be held in the City Council Chambers, 301 W. Second St.
The public comment period regarding the economic development proposals will continue through 5 p.m. Feb. 16. Additional information about the meetings may be found on the Economic Development Department's website.
