News from Round Rock ISD
District officials decline $900M Toppan Photomasks semiconductor project proposal ROUND ROCK ISD The board of trustees
LOCAL INVESTMENT Toppan Photomasks sought a chapter 313 taxable value limitation with some conditions:
Place 3 Trustee and board President Amber Feller spoke in support of increasing domestic manufac- turing ahead of the vote. “From a national security standpoint, I do think it is really important,” Feller said. “I do love when we can bring manufacturing to America. The problem with doing that is labor is so much more expensive in America.” Representing the company, Sara Leon and Michelle Alcala of Leon Alcala PLLC told the board that Toppan Photomasks sought a total value limitation of $100 million for management and operations as well as $773 million for interest and sinking for a set period of time and would bring 250 manufacturing jobs to the area. If not Round Rock, Leon said the company would seek another location outside of Texas. An investment of this size would also go toward reducing the district’s recapture—excess local tax revenue paid back to the state—but it is unclear how much, Leon said. Chapter 313 applications were not renewed as part of the state tax code during the last Texas legislative session, and will be phased out Dec. 31.
declined a Chapter 313 application from Toppan Photomasks, a manufacturer of components used in semiconductors. The company proposed a total of $900 million in economic investments within the district, but officials passed on the agreement during a May 19 meeting. Under the 313 Taxable Value Limitation applica- tion, which typically allows for a 10-year limitation on taxable property value in a school district under the Texas Economic Development Act, RRISD would have been reimbursed for any revenue lost over time, according to a representative of Toppan Photomasks. Place 4 Trustee Cory Vessa recused herself from the 3-3 vote due to what she called a conflict of interest, and the “no” votes came from Places 1, 2 and 7 Trustees Jun Xiao, Mary Bone and Danielle Weston. The trustees did not indicate why they voted the motion down, and it is unclear whether the application may be brought before the board again, according to district staff.
$900 MILLION total economic investments to the RRISD tax base *The caps apply to taxable value and are not representative of $900 million investment
$100 MILLION* value cap for the management and operations rate $773 MILLION* value cap for the interest and sinking rate
Bring 250 manufacturing jobs to Round Rock
Lower recapture payments due to the state of Texas
SOURCE: SARA LEON, LEON ALCALA PLLC/ COMMUNITY IMPACT NEWSPAPER
COMMUNITY IMPACT NEWSPAPER • COMMUNITYIMPACT.COM
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