Number of New Jobs Created With Public Private Initiatives
The purpose of the Global Business Recruitment and Expansion (GBRE) Program is to encourage expansion of businesses and increase job creation and tax base within Austin’s Desired Development Zone. Agreements authorized by Chapter 380 of the Texas Local Government Code provide assistance for economic development and increase job creation. Additionally, Media Production and Development Zone (MPDZ) and Texas Enterprise Zone (TEZ) designations for projects help to create and retain jobs. The TEZ program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state. The MPDZ incentive, administered by the Texas Film Commission, is a two-year exemption on sales and use taxes normally charged on the construction, maintenance, expansion, improvement, renovation, and equipping of media production facility.
This measure is the cumulative total of jobs created by projects approved during the fiscal year through the Chapter 380, TEZ, and Small Business (SBP) programs.
FY 2015-16 Results
The number of jobs created in FY 2015-16 was 439, 44% below the established goal of 785 jobs.
Assessment of Results
In FY 2015-16, 429 jobs were created due to public and private initiatives, a 150% increase from the previous fiscal year. In FY 2014-15 and FY 2015-16, City Council did not approve new economic development agreements, resulting in a decrease in job creation than in previous years. In FY 2015-16, 139 new jobs came from Small Business Programs (SBP) through the Business Solutions Center (BSC), Family Business Loan Program (FBLP), and technical assistance services, and 300 were from Media Production and Development Zone (MPDZ). In addition to the new jobs created, in FY 2015-16 620 jobs were retained in Austin through the Texas Enterprise Zone (TEZ) and MPDZ programs. The TEZ project also brought capital investment of $11 million.
Economic development efforts in FY 2011-12 and FY 2013-14 resulted in significant increases in job creation compared to historical trends. In FY 2011-12, three Chapter 380 agreements created 4,139 new, full-time jobs, and also brought capital investment of $343 million. In FY 2013-14, 1,247 jobs were created through six Chapter 380 agreements, 368 jobs were created through SBP (of which 52 were from FBLP), and 700 from the TEZ program. The six Chapter 380 agreements executed in FY 2013-14 also brought an estimated $69.7 million of investment to Austin.
Economic Development has revised its focus to emphasize creating jobs for low and moderate income persons. This effort includes encouraging location and expansion of businesses within lower-income census tracks using the Chapter 380 and TEZ programs for projects that create and retain jobs. SBP will also continue its efforts to work with existing small and locally-owned businesses to help them expand. GBRE will evaluate Austin’s economic competitive advantages and propose new programs to strategically position the city for the future. New incentives may include the Einstein Project, an economic intervention initiative designed to remove children from poverty through mentoring and tutoring.
For more information contact David Colligan, Global Business Recruitment and Expansion Manager, at (512) 974-6381.