Posting Language
Title
Authorize the negotiation and execution of a Business Expansion Program economic development agreement with Southwest Airlines Co. for a jobs-based award of $2,750 per job hired in the City of Austin over a five-year term, and approve an ordinance providing an exemption of the requirements Ordinance Nos. 20180830-057 and 20240926-013 to support Southwest Airline Co.'s business expansion at the Austin International Airport. Funding: Funding is contingent upon approval of future Economic Development Department's Economic Incentive Reserve Fund Budgets and contract performance and compliance evaluations.
De
Lead Department
Austin Economic Development.
Fiscal Note
A total of $19,800,000 in annual local tax revenue with $11,850,000 recognized directly by the City of Austin is projected to result from the approval of this agreement. Maximum incentive payments to Southwest Airlines are estimated at $5,500,000 in total over the course of a five-year term if all performance and compliance criteria are met. Funding for incentive payments is contingent upon the annual appropriation of funds to the Economic Incentive Reserve Fund by City Council. Eligible sources of funding for the Economic Incentive Reserve Fund may include, but are not limited to, sales taxes, property taxes, mixed beverage taxes, and grants and private donations. Staff shall explore a diverse complement of funding sources to support the Economic Incentive Reserve Fund's sustainability in future years.
For More Information:
For more information regarding this Request for Council Action, Please Contact: Anthony Segura, Interim Director, Austin Economic Development.
Additional Backup Information:
Southwest Airlines Co. (Southwest) has served Austin International Airport (AUS) and the City of Austin for 48 years as a provider of air travel, a job creator, and a dedicated community partner. The company is in the top ten largest private employers in the State of Texas and the larges...
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