[ad_1]
One of the largest economic development projects in Texas history is due to be built in Williamson County.
Samsung is larger than any single company in central Texas before and is expected to build a 6 million square foot facility that will create 1,800 higher-paying jobs in the area.
The project includes $ 6 billion in infrastructure, land and construction costs, as well as private property, machinery and equipment valued at $ 11 billion. The approximately 1,288 hectare property for the project is south of Hwy. 79 and west of FM 973, southwest of downtown Taylor.
Williamson County judge Bill Gravell Jr. told Community Impact Newspaper on Sept. 7 that negotiations and work on the project had been completed on a daily basis since January when district officials met Samsung executives at Dell Diamond in Round Rock.
“What we have to offer is the perfect combination of great schools, safe communities and quality of life,” said Gravell. “We have an existing world-class workforce and an ecosystem around it.”
Gravell said that along with the Samsung jobs, thousands of contractors will also be working at the facility. The project will also create 6,500-10,000 direct build jobs during the construction of the plant, according to Williamson County.
“When I first toured the Austin facility, I was really amazed at the number of jobs that weren’t Samsung jobs,” Gravell said of contractors. “For me, that was the turning point I wanted in Williamson County, and we were all there.”
The shortage of semiconductors – devices with nodes, transistors, and integrated circuit chips – is a global problem as production slows and the supply chains of vehicles, computers, and other electronics become challenging.
“Samsung wants to be involved immediately,” said Gravell. “Like Apple and Dell, I think they see the value in doing business with [Williamson County]. “
The agreements
At a joint meeting of the Williamson County Commissioners Court and the City of Taylor on September 8, the two bodies unanimously approved economic agreements to partner with Samsung for a $ 17 billion semiconductor manufacturing facility.
Among other things, the Chapter 381 Economic Incentive Agreement with Williamson County requires Samsung to have the 6 million square foot facility completed by January 31, 2026 with an occupancy certificate, but staggered construction with various goals to be achieved. The first phase of construction for 2.5 million square feet would open by December 2023, and Samsung would also create 1,800 full-time jobs, also staggered during the expansion.
In return, Williamson County will refund 90% of the value taxes Samsung paid on the property for 10 years. If Samsung meets the terms of the agreement, a 10-year extension will be offered at an 85% discount.
For Williamson County, the investment is reported to be a gain of $ 135 million in additional ad valorem property tax revenue over a 30-year period. The county currently receives $ 1,298 a year in taxes on the same property.
Valerie Covey, commissioner for Williamson County Precinct 3, said although the Samsung facility is located in Taylor, the entire district will benefit greatly from it.
“I can support this project and this company because … we need chip manufacturers here in the United States,” said Covey at the joint meeting on September 8th. On August 20, the Texas Comptroller of Public Accounts notified Taylor ISD that it had issued a certificate of limitation on the estimated value of the facility. Under the agreement, Samsung would cap the estimated taxable value of TISD Maintenance and Operations Ad Valorem tax of $ 80 million per year for
10 years starting in 2024. The valuation cap, known as the Chapter 313 Limit of the Texas Tax Code, was an added incentive for Samsung to locate its Taylor facility.
According to district documents, Samsung would expect savings of $ 314.11 million in 2022-38 due to the 10-year cap.
TISD Superintendent Devin Padavil said the deal will also benefit the district by providing 24 internships per year for the next 30 years.
“The real chance here is that it opens up in the minds of our children the ideas that their future may have,” said Padavil.
On September 8th, Taylor City Council passed Tax and Development Agreements that provide property tax rebates under a High Tax Reinvestment Zone, or TIRZ, for 92.5% for years 1-10, 90% for years 11-20, and 85% for years will include 21-30 as long as the terms of the agreement are met.
On September 9, the Taylor City Council met in consecutive sessions to designate the 1,288 acres of land in the city’s extraterritorial jurisdiction as TIRZ, allowing the city to lower property taxes for property owners.
Once Samsung owns the property, it would mean the company would be exempted or reduced from some of the taxes on the property. Samsung would also apply for voluntary incorporation into the city of Taylor for community services.
The competition
Samsung had its eye on several locations that had recently been limited to Williamson County and Austin, Texas; Goodyear, Arizona; Genesee County, New York; and South Korea, where Samsung is headquartered.
Samsung said in Applications that Texas needs tax treaties to compete with other potential locations.
“Without the estimated capitalization price, the company would likely locate the project in Arizona, New York, or Korea,” the filing says in the application.
The project had several local options in central Texas, including Travis County and the city of Austin, where Samsung has a large presence with a semiconductor plant along East Parmer Lane.
Documents reviewed by the Community Impact Newspaper in January showed that Samsung had already turned down an offer from the city of Austin that contained nearly $ 650 million in incentives over five years. Instead, the company applied for 100 percent tax exemption over 20 years.
Although Samsung had not officially announced its new location at the time of going to press on September 22nd, Williamson County officials are confident the plant will come to Taylor.
At the joint meeting of the district and city on September 8th, several residents, business owners and district officials spoke out in favor of the project.
Precinct 4 Williamson County Commissioner Russ Boles said Williamson County was once an area people left when they grew up. Well, he said, there is no reason for a company like Samsung not to compete with other fields.
“It has become and it really is a wonderful place,” said Boles. “With executives in front of me, I was able to start my own business and raise my family here. Williamson County is a place of opportunity. “
Brian Rash contributed to this report.
[ad_2]
