Government
BY BEN THOMPSON & CHLOE YOUNG
Travis County to withhold some of Tesla tax rebate Travis County is lowering its tax rebate to Tesla due to “partial noncompliance” with a perfor- mance-based local incentive agreement. Since 2020, the county promised Tesla tax breaks to build the 10-million-square-foot Giga Texas car manufacturing plant near Del Valle. On April 7, Travis County commissioners voted to withhold 9% of funds for 2020-22 after receiving “incomplete documentation” from the Colorado River Project, a Tesla subsidiary, County Judge Andy Brown said. “We have to continue to demand accountability in future compliance conversations,” Commissioner Ann Howard said. “I’m grateful for the work and the good, but it comes with a price, and we need to be accountable to the people for that.” The overview Under the agreement, Tesla would receive a 70% rebate on its maintenance and operations property taxes for the first $1.09 billion invested through Giga Texas. The company could receive a 75% rebate for investments beyond $1.09 billion and up to an 80% rebate for investments beyond $2 billion. Tesla was projected to receive a $14.65 million rebate over 10 years, according to initial county estimates from 2020. A Travis County spokesperson said the county has not yet calculated how much of a rebate Tesla will receive for 2020-22. To acquire these rebates, the company was required to create at least 5,001 new full-time jobs—50% of which had to be filled by Travis County residents—among other requirements. All employees had to receive a minimum base wage of $15 per hour and at least $47,147 a year for full-time jobs, according to county documents.
Austin moves to expand mixed zoning City Council took the first step toward broadening the types of multiunit housing that can be built in Austin neighborhoods and allowing more mixed-use development citywide. What happened On March 26, council advanced the creation of two new zoning categories over the year ahead meant to support: • Multi-unit, “missing middle” housing at scales in between single-family homes and bigger apartment complexes • Transit- and pedestrian-oriented develop- ments blending residential and commercial space, from smaller corner stores to larger mixed-use buildings Council member Paige Ellis said improved mixed-use zones can support a wide variety of development, from denser apartment proj- ects desired near downtown and transit lines to smaller businesses near neighborhoods. And Mayor Kirk Watson called missing middle a “logical step” toward improving housing affordability and choice. “Having a well-rounded, robust, and active housing market means addressing what’s missing, and these mid-density developments are what’s missing,” he said. The two concepts, laid out in a resolution from Ellis, will now be worked into new zon- ing in the year ahead. Her measure built on a recent city study into Austin’s current housing stock and recommending policy changes.
Tesla tax breaks Travis County extended tax relief to Tesla for the development of its Giga Texas plant.
County grant percentage:
• 70% in all payment years for first $1.1 billion invested • 75% for investments over $1.1 billion up to $2 billion • 80% for investments over $2 billion
As of 2022, Tesla:
Invested over $5.8 billion
Created nearly 12,300 new jobs
Jobs averaged hourly pay of $39.72 , and $26.53 for construction contractors
SOURCE: TRAVIS COUNTY/COMMUNITY IMPACT
“We are holding Tesla accountable,” Commis- sioner Brigid Shea said. “They have also met and significantly exceeded the key requirements in the contract of creating a very large number of very good paying jobs for people who have less than a college degree.” The update Tesla provided incomplete documentation on its building standards, construction site safety, mini- mum hourly wage, and janitorial and food contrac- tors. Tesla also exceeded many of the agreement’s provisions, Christy Moffett, the county’s director of economic development and strategic investments, said. As of 2022, Tesla invested over $5.8 billion into the property, surpassing the original target of nearly $178 million.
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