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Figure 2: Economic Development Matrix <br />Article I. 0c-erall Economic and Fiscal Impact <br />Grant <br />Date <br />(jobs and income, net fiscal impact, desirable public <br />25% of Property Tax (20 years) <br />benefits, in growing target industry, firm <br />May 15, 2003 <br />80% of Sales Tax (Years 1 -5) <br />headgnartars operation, large employer -500 or more). <br />50% of Sales Tax (Years 6 -15) <br />Firm -Based <br />Small <br />hiadium <br />I.aree <br />Points - <br />10 <br />20 <br />30 -. <br />Linkage; to the Local Economy <br />(uudennitized segments of <br />workfoma or space, contracting <br />opportunities nith. local firms, add to <br />local eesaGmic bmz, compete <br />with emsfing local firms) <br />Poor <br />Acceptable <br />strop <br />Points <br />0 <br />is <br />19 <br />Ch3reCter ofTob.lLabor Practices <br />(hiring fi'om local laborkice versus in- nngrams, <br />average andmedim wage, wage snuchue <br />commitment to worker training, diversity in hiring <br />and promotion) <br />Poor <br />Acceptable <br />Excellent <br />Points " <br />0 <br />le <br />25 <br />Infiashnchuz Impact <br />(disproportionate demand on <br />community utfi'ashucture - water, <br />utilities, trarmpmtition) <br />Low <br />Disproponionate <br />Proportionate <br />Impact <br />Points " <br />0: <br />5 <br />10 <br />Quality ofLifr!Cultmal Vitality (film has ctilhu -d <br />outreach and employee philanthropy program) <br />Unacceptable <br />Acceptable <br />Excellent. <br />Paints - -: '. <br />`0' <br />10 <br />Austin Green Building <br />Program (2 -star green building orLEED certified <br />rating) <br />No <br />Yes <br />Boum Points <br />0 <br />10 `. <br />110 <br />Total Possible Points <br />Should the company <br />meet both minimum <br />requirements, the <br />company is then <br />evaluated by a scoring <br />matrix, shown in Figure <br />2. The matrix has 6 <br />major categories, each <br />with point totals and 3 <br />within-category <br />rankings for a total <br />possible 110 points. <br />The categories are <br />Overall Economic and <br />Fiscal Impact, Linkages <br />to the Local Economy, <br />Character of Jobs and <br />Labor Practices, <br />Infrastructure Impact, <br />Quality of Life and <br />Cultural Vitality, and <br />participation in the <br />Austin Green Building <br />Program. <br />Firms with a score <br />between 81 and 100 <br />may qualify for up to <br />50% of the net present <br />value of the estimated <br />total tax liability over 10 <br />years. Firms with 61-80 <br />points may qualify for <br />30 %, and a score <br />below 60 disqualifies <br />the firm. As a rule, total <br />incentives will neither exceed 50% of this net present value nor 80% of the total tax liability in any single <br />year. Each category contains quantitative and qualitative sub - measurements to determine point total. <br />There is one category called "Extraordinary Economic Impact' which is not shown here. The Council <br />reserves the right for additional consideration for companies that meet 1 of 4 special criteria: production of <br />an emerging technology, creation of more than 500 jobs, the potential for State funding, or involvement in <br />a targeted industry. <br />After this step is completed, the agreement moves into the political process, from Economic Development <br />Committee to City Manager, drafting by the legal department, and ending with a vote by City Council. <br />Table 1: A Review of Austin's Active Development Agreements <br />Project / Company City Council Approval <br />Grant <br />Date <br />Project -Based <br />25% of Property Tax (20 years) <br />Domain <br />May 15, 2003 <br />80% of Sales Tax (Years 1 -5) <br />50% of Sales Tax (Years 6 -15) <br />Firm -Based <br />941 Page <br />