Texas' relocation tab jumps to $61M this year

Jul 9, 2014
Austin Business Journal

The Texas Enterprise Fund has spent at least $61.1 million this year to lure companies and jobs to the state, with the most recent allocation of $8.6 million going to bring Active Network LLC to Dallas


The incentive money promised so far could bring 5,222 jobs and $394.4 million in capital investment by companies headed to Texas from out of state, according to figures from Gov. Rick Perry’s office


Active Network is relocating its headquarters from San Diego to downtown Dallas, creating 1,000 jobs and $13 million in capital investment, according to Perry’s office. The average salary for the jobs is $72,000 per year


In addition to the state incentive, a city incentive package is expected to be presented to the Dallas City Council in August. A city incentive package is required for the state incentives package to go into effect


Active Network is the latest California company this year to receive multimillion-dollar incentive packages to relocate to North Texas. The biggest package has been promised to Toyota, which will receive $40 million in Texas Enterprise Fund money to move its U.S. headquarters to Plano from Torrance, California. In addition, the Plano City Council in May approved an economic incentive package for Toyota that links $6.75 million in grants to moving the headquarters and providing 3,650 full-time jobs


Omnitracs, the other company bought by Vista Equity in 2013, has been identified in press reports as a potential tenant for Dallas' KPMG building, which is the skyscraper where Active Network is headed


The Legislature created the TEF in 2003 and reauthorized funding in 2005, 2007, 2009, 2011 and 2013 to fuel growth of Texas businesses and create jobs statewide. TEF projects must be approved by the governor, lieutenant governor and speaker of the House


To date, the TEF has invested more than $560 million and closed the deal on projects generating about 74,800 new jobs and more than $24 billion in capital investment in the state, according to the governor’s office



Print Article opens in new window