It is the first of four political approvals needed before Central Texas can submit a formal incentives package in hopes of landing a proposed $3.5 billion semiconductor factory from the South Korean company.
The package, which is expected to top $200 million in incentives from the city, county, Manor school district and state, has been negotiated in detail over the past four months. It is not expected to encounter much formal opposition, as seen by the City Council's 7-0 approval of the tax and utilities incentives.
The city's incentives package includes 10 years of 100 percent property-tax abatements on the project, followed by 10 years of 75 percent abatements. Without the tax break, Samsung would pay an average of $3.8 million a year in city property taxes for the factory in the first 10 years after it is built.
Central Texas is eager to win the plant. The massive factory would employ 700 Samsung workers and an additional 200 workers from equipment and material suppliers. It also would be the largest user of water and electricity in Austin.
The plant would be Austin's first new semiconductor factory since Samsung completed its first chip plant here in 1998. The company employs about 970 people in Austin."
