Austin Risks Losing Apple Expansion Over Incentive Delays

Apple’s frustration over delays in incentive approvals for its planned 3,600 employee expansion in Austin could cause the proposal to fall apart. The county is apparently still debating the incentives the government will offer the Mac and iPad maker, and is seeking more conditions before approving the deal.

Austin Apple expansion deal could fall throughAustin Apple expansion deal could fall through

Travis County approved its incentives in principle on April 17, but has since been dragging its heals. The deal would give Apple US$35 million in incentives over a ten year period, and between $5.4 million and $6.4 million would come from the county.

Right now, however, Travis County officials are delaying their approval, putting the whole deal in peril, according to The Statesman. Without the county’s involvement, Austin and Texas won’t be able to follow through on their incentive offers.

“This deal is not done,” said Dave Porter, the Austin Chamber of Commerce senior vice president for economic development. “It remains in peril. And Apple is frustrated.”

Apple has been planning on building new office space in Austin to house some 3,600 more employees in the city. The state of Texas offered $21 million in incentives, and Austin offered to kick in an additional $8.6 million to help bring jobs to the economically stressed area.

Travis County officials have delayed their vote until next week. There isn’t any guarantee, however, that Apple will get the approval it wants since the company is still negotiating with the county.