Commissioner outlines requirements for her approval of Apple incentive

Eckhardt is one of five Travis County commissioners who will likely vote on the rebate at an April 3 meeting.

The county rebate would coincide with an $8.6 million tax rebate from the City of Austin, which council unanimously approved March 22. In exchange for the city incentive, Apple agreed to keep its existing 3,100-person workforce at its Riata Vista Circle campus, hire 3,600 new employees, build a $243 million new campus in two phases by Dec. 31, 2021, and adhere to state and federal laws regarding safety and minimum wage for workers hired to build the campus.

Apple is also in line to receive $21 million from the Texas Enterprise Fund, which is used to attract businesses but requires that Texas must be competing against another state to be the location of the expansion. According to city documents, Apple is also considering locating the center in Phoenix.

However, prior to approval from City Council, some citizens expressed concern that the rebates were not incentives, but gifts and that Apple was not truly considering Phoenix as an alternative.

Resident Brad Parsons told City Council there were reports in Phoenix that Austin was the only location being seriously evaluated.

"Literally, Apple earns in a few seconds what you all are offering," he said. "This is not a true incentive. Apple does not need nor deserve these proposed tax giveaways over 10 years in order to decide whether to expand their footprint already in Austin."

Kevin Johns, director of economic growth and redevelopment services for the city, said it is difficult to confirm if a business is considering other locations, so instead the city places emphasis on how much it could make from the deal. Johns said in this case, the city expects to net $14.6 million over 14 years.

Eckhardt has gone on the record with concerns about Apple's need for the rebate and in the statement addressed claims that Phoenix was not an actual competitor.

"Even if Phoenix is or was a serious contender for Apple's expansion plans, a bidding war between Phoenix and Austin serves only to guarantee that Apple will receive preferential tax treatment wherever it locates, not because Apple needs it, but because Apple commands it," she said. But, she added, "I am willing to overlook the weakness in the 'competitive site' argument if Apple helps the county achieve some public good that the market isn't supplying on its own."