Posting Language
Title
Conduct a public hearing to present details and staff evaluation of an application for an economic development agreement from NXP USA, Inc., under the City of Austin Chapter 380 Economic Development Policy.
De
Lead Department
Economic Development Department.
Fiscal Note
This item has no fiscal impact.
For More Information:
Sylnovia Holt-Rabb, Director, Economic Development Department, 512-974-3131; Arnie Jacob, Business Process Consultant, 512-974-7786.
Additional Backup Information:
The Economic Development Department requests City Council's consideration of a proposed ordinance authorizing the negotiation and execution of an economic development agreement with NXP USA, Inc. (NXP). NXP submitted an application to the City for a Chapter 380 economic development agreement.
NXP has two existing manufacturing facilities in Austin, located at 3949 Ed Bluestein Boulevard (ATMC) and 6501 W. William Cannon (OHT). The Chapter 380 economic development agreement will act as an inducement for NXP to select its Austin campuses as the location for an expansion of its semiconduction wafer manufacturing capacity. If this project is selected over competing locations, the non-viable production lines at ATMC and OHT will be removed and replaced with manufacturing capabilities for semiconductor wafers that better meet current market demands. Without the additional capital investment, utilization, and productivity of NXP's Austin operations would continue to decline as its existing product lines become obsolete. The prospective total direct economic impact of the project across the two campuses would be the recovery of 53 jobs and a capital investment of $290,800,000.
The project is eligible for consideration under the City's Chapter 380 guidelines and received the necessary score for a base reimbursement of 40 percent (Base Award) of property taxes paid to the City. Staff recommends a 10 percent additional award (Additional Award) be provided to th...
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