Orange County NC Website
From Economic Base to Economic "Basin ": Keeping UNC <br />Ideas Here <br />A Case Study of the Economic Incentive Process of Austin, TX <br />The following research is a best - practice case study of the economic development process employed by <br />the City of Austin, Texas. 'Documentation of best practices' was requested in Research Task #3 and case <br />study research was promised in the original scope of work. I preface this writing only to explain that this is <br />neither a strict comparison of the technology commercialization process at the University of Texas - Austin <br />nor an explanation of Austin's efforts to retain entrepreneurial activities from the university. Instead, this <br />case study outlines the economic incentive process employed in Austin, a home of state government, a <br />major university, and established industries but also a city which faces environmental and social equity <br />tensions. At the end of this document you will find an Author's Note which explains more of the <br />background of this case study. <br />The Commissioners of Orange County can benefit from understanding how the process has evolved in <br />recent years to address issues of social equity and public disclosure. Final recommendations will be <br />made to add to an understanding of how government can proactively address companies with interest in <br />locating in Orange County. <br />Executive Summary <br />Austin, a city which claims to be more selective than peer cities when offering economic <br />incentives, has 7 active economic development agreements. Since 2003, the City has used a <br />structured process in evaluating the potential for incentives. A reduction in property taxes or <br />other accrued liabilities has been the normal means for these incentives. In return, the city has <br />made minimum requirements regarding site location, water regulation compliance, capital <br />investment, and job creation. Moreover, the process has, in recent years, added steps to the <br />process of evaluation and compliance review which address social equity and public disclosure. <br />A descriptive account of Austin's most recent economic development agreement with a solar <br />technology company, HelioVolt, is included to enrich the understanding of these mutually - <br />benefiting contracts. Final recommendations for Orange County include: <br />• Provide alternative means to reach mutually- benefiting goals <br />• Make "place" matter by grounding a company in Orange County <br />• Set the expectation of prospective companies through a structured process <br />Figure 1: Austin's Economic Development Incentive Process <br />921 Page <br />