From noglstp-request@elroy.jpl.nasa.gov Wed Dec 1 09:02:58 1993 Received: from elroy.jpl.nasa.gov by mail1.its.rpi.edu (4.1/SMHUB42); id AA01334; Wed, 1 Dec 93 09:02:55 EST for buckmr Received: by elroy.jpl.nasa.gov (4.1/SMI-4.1+DXR) id AA26199; Wed, 1 Dec 93 05:58:10 PST Resent-Date: Wed, 1 Dec 93 5:58:26 PST Resent-From: noglstp-request@elroy.jpl.nasa.gov Message-Id: <9312011358.AA26199@elroy.jpl.nasa.gov> Return-Path: Subject: (LONG) Apple pulls plug on relocation project To: noglstp@elroy.jpl.nasa.gov Date: Wed, 1 Dec 93 5:58:26 PST Cc: domestic@cs.cmu.edu X-Mailer: ELM [version 2.3 PL11] Resent-Message-Id: <199312011358.FAA09935@mail.netcom.com> From: lfern@netcom.com (T. David) Resent-Reply-To: lfern@netcom.com (T. David) Sender: noglstp-request@elroy.jpl.nasa.gov Status: U >From the Dec 1, 1993 Austin American Statesman: Apple pulls plug on relocation project Denied tax break by Williamson County, computer giant says it may leave state By R. Michelle Breyer American-Statesman Staff GEORGETOWN- Apple Computer Inc. tabled its proposed project in Williamson County on Tuesday and suggested it may move all operations out of Texas afer county commissioners defeated a tax incentives package for the computer giant because of the company's domestic partners policy. "It is unlikely we will locate in Williamson County because of the tax abatement issue," said Lisa Byrne, spokeswoman for Apple in Cupertino, Calif. "We were very disappointed with the vote." The measure, which would have given Apple property tax breaks of up to $750,000 over seven years, was defeated by a 3-2 vote shortly after the commissioners unanimously approved an abatement for Dell Computer Corp. [which has no DP benefits or EEO protection]. The commissioners' vote shocked many in the Willaimson County business community who believed the $80 million Apple project was all but a done deal. Meanwhile, officials in Austin, stung by Dell's decision to move its sales, service and support activities to a 350-acre site in Round Rock that would employ 1,500 tried to capitalize on the commissioners' decision and recruit Apple to Travis County. Earlier this year, the Cupertino, Calif., company announced plans to build its U.S. Customer Support Center on a 129-acre site south of RM-620 on Parmer Lane. The center's operation, which is in leased space in Northeast Austin, employees 700 people. The support center at the proposed site, which is in the extra-territorial jurisdiction of Austin, could have employed an estimated 1,400 people over the next few years, said Bill Keegan, spokesman for Apple. Apple officials also have said that in time the Williamson County site could expand beyond customer service to include research and development and marketing. The site could accomodate up to 750,000 square feet of space and could employ several thousand people over the next few years, Apple officials said Tuesday. Comstruction on the first phase of the facility was expected to begin in the spring. By the year 2000, a total of 4,500 jobs and millions of dollars in payroll would have been created as a result of Apple's move to Williamson County, according to an economic impact study by Texas economist Ray Perryman. During that period, the facility would generate $52.4 million in wages and salaries and would pump over $300 million into the local economy, the study said. Aplle has donated $70,000 in cash and computer equipment to 30 Austin-area non-profit organizations since it moved to Austin in July 1992. "Suffice to say, the impact is significant," Commissioner Mike Heiligenstein, a supporter of the abatement, said during the meeting. In an employee memo Tuesday, Jim O'Neil, site director of Apple's Austin facility, said the company has asked commissioners to reconsider. "Should they not do so, it is clear that we would not locate our facility in Williamson County," O'Neil said. "We would then review alternative site options. Regrettably, this means leaving Texas." In October, Commissioners Jerry Mehevec and Greg Boatright pledged to oppose the tax break because Apple provides benefits such as health insurance to domestic partners of gay and lesbian employees. Apple's proposal is the first tax abatement Williamson County commissioners ever have voted down, said Commissioner David Hays, who surprised many people by voting against the abatement. "If I had voted 'yes,' I would have had to walk into my church with people saying, 'There is the man who brought homosexuality to this county,'" Hays said. Going into Tuesday's meeting. business leaders believed Commissioners Hays and Heiligenstein would vote in favor of the abatement, Mehevec and Boatright would vote against it, and Williamson County Judge John Doerfler would be the swing vote. In the final vote, Mehevec, Boatright and Hays voted against the abatement, while Heiligenstein and Doerfler supported it. Business leaders were caught off guard by Hays' votes. A letter to the editor written by Hays was published in Monday's Round Rock Leader rallying support for Apple's tax abatement. "I do not condone domestic fringe benefits as supported by the City of Austin and Apple Computer," he wrote, "However, I do support a policy of limited government and free enterprise. Government should not be a social engineer; it should not tell private industry how to run its businesses!" Hays, a new commissioner, said he slept little Monday night as he grappled with one of the toughest decisions he has ever had to make. His final decision, he said, was made Tuesday morning. "For me it boiled down to values," Hays said. "The people felt we were compromising our values. That hurt me. The only thing you have are your values, integrity and character. When people you care about question that, you have to wonder if bringing in this industry is worth it." Hays said he received more than 100 calls from "Christians from all over the county" and people who had worked on his campaign. When the county raised taxes 8 percent, he said he received only five calls. Randy Smith, a Leander City Council member who spoke out against the abatement, said Apple's policy could lead to broken homes, a higher tax rate and the spread of disease throughout the county. "It could undermine the foundations of our community," he Staudt, who spoke to commissioners twice during the meeting. "If Apple goes elsewhere, this community will prosper because we've taken a stand for strong families." Others in the area viewed it as a blatant attempt to interfere with a company's policies - a move they believe will strike a damaging blow to the area's economic development efforts. "Apple would have been a beautiful company to have in the community," said Joe Beneat, owner of Manhattan's a popular Round Rock watering hole. Beneat is a member of Round Rock's Century Club, a group of business people who work to recruit companies to the city. He said he believes Tuesday's vote has hurt their efforts. "This sends a clear message that Williamson County doesn't want to work with businesses," Beneat said. Phil Brewer, president of the Round Rock Chamber of Commerce, sadi he had been cautiously optimistic the abatement would pass. "Everyone was," said Brewer. "I'm hearing concern and disappointment. It's negative, it really is." Brewer, who has spearheaded the city's economic development efforts, said he will be going to California at the begining of the year to mend fences. The Round Rock Chamber of Commerce has focused much of its recruitment effort on Northern California's Silicon Valley, where Apple is based. Several Austin City Council members drafted a letter Tuesday to Apple's O'Neil underscoring the city's support for the company and its personnel policies. The council voted 5-2 in September to give benefits to domestic partners of city employees. The City Council members reiterated the city's previous offers of assistance, which include an expedited planned development agreement ans assistance in evaluating alternative sites in Travis County. "We value your presence in our community and we appreciate the lengths Apple has gone to in responding to the needs of its employees." said the letter signed by Council Members Max Nofziger, Gus Garcia and Brigid Shea. In a statement, Gov. Ann Richards said she had talked with Apple officials Tuesday and said she will continue to promote other sites in Texas, although she respects Williamson County's right to make its own decision. "Apple is a great company. They produce a great product, and they have been a good corporate citizen here in Austin," Richards said. -- T. David