New higher ed campus deal signed

South University is an accredited university with 13 campuses in nine states. The school offers a variety of four-year graduate and undergraduate degree programs. The Austin campus includes business administration, criminal justice and nursing programs.

Incentives

The new incentive deal—which was approved by City Council on Dec. 19—calls for the construction of a $7 million, 42,000-square-foot campus directly adjacent to the Emerson buildings. Ben White, vice president of economic development for the Round Rock Chamber of Commerce/Economic Development Partnership, said the developer of the property plans to close on the land in February and begin construction on the campus soon after. South University has agreed to lease the property through at least Dec. 31, 2018, and retain at least 55 full-time employees by the fifth year of the agreement. The school hopes to have the new campus open by February 2015, White said.

"The [Louis Henna Boulevard] corridor is hot right now with its access to [SH 45 N] and Loop 1," White said. "Higher education is a target sector for Round Rock right now, and we are excited to add another campus."

South University will become the fourth higher education campus within Round Rock's city limits. The city already hosts Austin Community College, Texas State University–Round Rock and the Texas A&M Health Science Center campuses.

In exchange for constructing the building and relocating the campus, the city of Round Rock and the Williamson County Commissioners Court agreed to grant the developer and school a series of incentive packages.

Douglas Allred Co., a San Diego–based real estate development firm, will receive a four-year, 40 percent property tax abatement from the city, as well as an agreement to waive up to $50,000 worth of permit fees. On Jan. 7, the Williamson County Commissioners Court also granted the company a four-year, 40 percent county property tax abatement conditional on the building being completed by the end of February 2015.

As an incentive for hiring at least 38 employees upon opening, the city also granted South University a one-time $75,000 grant. The chamber also agreed to provide the school a $25,000 grant from its Momentum Fund, which utilizes private-sector revenue from donors to support local economic development.

The chamber estimates the city's investment and incentives toward South University will be paid back in two years through the new tax revenue that is generated.

Job creation

The deal with South University capped off a year in which Round Rock drew new companies from throughout the state and nation. In June, the city recruited ClearCorrect, a removable dental braces manufacturer, to relocate its headquarters and manufacturing facilities from Houston. The city also reached agreements with ThermaSol, a California-based steam shower manufacturer, and Insys Therapeutics, a pharmaceutical manufacturer, to respectively relocate to and expand their facilities in Round Rock. In addition to South University, those companies will add at least 230 full-time jobs to Round Rock's employment base.

The city also saw the opening of or secured deals with major retailers Bass Pro Shops, Gander Mountain and H-E-B.

"We are so lucky to be in such a strong community," said Bryant Smith, chairman of the chamber's board of directors. "The quality and range of the projects we've been able to attract this past year will not only diversify our economy, but also add to every aspect of life in our city."