From the Apple Newsroom website. Apple to build new campus in Austin and add jobs across the US Cupertino, California and Austin, Texas — Apple today announced a major expansion of its operations in Austin, including an investment of $1 billion to build a new campus in North Austin. The company also announced plans to establish new sites in Seattle, San Diego and Culver City and expand in cities across the United States including Pittsburgh, New York and Boulder, Colorado over the next three years, with the potential for additional expansion elsewhere in the US over time. The announcement caps a year of continued job creation. Apple added 6,000 jobs to its American workforce in 2018 and now employs 90,000 people in all 50 states. As announced in January, the company is on track to create 20,000 jobs in the US by 2023. In 16 states, Apple today employs over 1,000 people. “Apple is proud to bring new investment, jobs and opportunity to cities across the United States and to significantly deepen our quarter-century partnership with the city and people of Austin,” said Tim Cook, Apple’s CEO. “Talent, creativity and tomorrow’s breakthrough ideas aren’t limited by region or zip code, and, with this new expansion, we’re redoubling our commitment to cultivating the high-tech sector and workforce nationwide.” Austin Campus Apple’s newest Austin campus will be located less than a mile from its existing facilities. The 133-acre campus will initially accommodate 5,000 additional employees, with the capacity to grow to 15,000, and is expected to make Apple the largest private employer in Austin. “Apple is among the world’s most innovative companies and an avid creator of jobs in Texas and across the country,” said Texas Governor Greg Abbott. “Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers. I thank Apple for this tremendous investment in Texas, and I look forward to building upon our strong partnership to create an even brighter future for the Lone Star State.” Jobs created at the new campus will include a broad range of functions including engineering, R&D, operations, finance, sales and customer support. At 6,200 people, Austin already represents the largest population of Apple employees outside Cupertino.
BOOOOOOOOOOOOOOOOOOOOOO! I'm sick of Austin growing. Nearly 20 years ago I moved 35 miles from town thinking I was far enough away to eventually retire in peace & quiet. Now Austin is so big its invading my rural space. I mean, business out here at the ranch has never been better, but at a steep price for sure.
My understanding is they got state funds from the Gov Good Hair program, but no local tax breaks or funds.
I stand corrected. In my Taylor Daily Press the front page story was about this. Williamson county gave them a 65% property tax break. They have 12 years to bring on 4,000 employees.
I was talking with a family friend who owns quite a bit of property in that area about the sale and I found out it was them who sold to Apple. I was surprised as the family is very picky about who they sell to. Not that Apple isn't a good company to sell to, but they hold on very tightly to their land to protect family long term interests. The final nudge was an agreement for a percent of Apple profits over the next 75 years. Is that common for companies to do that? I guess Apple really wanted to be in Austin.
Credits and incentives is a big and lucrative area of practice. I worked on these types projects with large manufacturing companies many years ago. It's a strategic game by looking at different sites in different states and counties to get them in a bidding war for the company to locate in their jurisdiction. Everything is on the table when negotiating with the state and local economic development agencies including free or reduced price land, property tax abatements, employment and employment tax credits, infrastructure (roads, power, water, sewage and so on), and other perks for a defined number of years. Whichever jurisdiction offers the best deal generally wins.
Absolutely! Its a "win-win" scenario for both Apple and the state. Downside: what happens if Apple incurs a loss?