City approves economic development agreement for Emerson expansion
Round Rock City Council approved an economic incentive agreement on Thursday, Feb. 24, with Emerson that will result in $9 million in new investment and at least 50 new jobs created.
The Round Rock Transportation and Economic Development Corporation and the City Council approved a Chapter 380 agreement with the company, which has been located in Round Rock since 2011, at their respective regularly scheduled meetings Thursday evening.
Emerson is a global engineering, technology and software company that specializes in helping manufacturers around the world optimize their operations for improved production, reliability and safety, as well as meet sustainability goals. The agreement requires Emerson to invest at least $9 million in real property improvements and business personal property at its existing headquarters located at 1100 W. Louis Henna Blvd. by Dec. 31, 2023. In addition, it must add 50 to 60 additional employees as a result of the proposed expansion and improvements by the end of the agreement.
“Emerson continues to be one of Round Rock’s largest employers and has been an essential community partner for more than a decade,” said Jordan Robinson, Interim President and CEO of the Round Rock Chamber. “We are thrilled that Emerson is committed to investing in its Round Rock headquarters to build a next-generation workspace and collaborative environment for its current and future employees.”
In consideration for Emerson meeting its obligations, economic incentive payments (EIPs) totaling $500,000 will be issued through the City’s Type B sales tax fund, divided into two payments made when the company is issued a building permit and Certificate of Occupancy. The agreement is performance-based and includes clawback provisions should Emerson not fulfill its obligations.
City Council also passed a resolution Thursday evening nominating Emerson for the Texas Enterprise Zone Program (EZP), which is a state sales and use tax refund program designed to encourage private investment and job creation. If selected by the state to participate in the program, the project must commit to hiring 35% economically disadvantaged individuals, veterans or enterprise zone residents for new or replacement personnel at the facility, for certified jobs over the next five years, due to being located outside of a designated enterprise zone.
“Emerson moved to Round Rock more than 10 years ago and has appreciated the long-term support and collaboration with the City of Round Rock and the business community here,” said Nathan Pettus, president of Emerson’s Process Systems and Solutions business. “We thank the City for this continued support of our capital investment plans that will help us attract and retain employees and grow our business in Round Rock.”
Emerson was represented at the meetings by Michael Lateur with Kroll LLC.
The City’s economic development program, which includes incentive payments such as the one approved Thursday night, has generated an additional $494.9 million in net taxes to be used on City of Round Rock services and programs since its inception over 15 years ago.
The post City approves economic development agreement for Emerson expansion appeared first on City of Round Rock.
Source: City of Round Rock