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Board approves $2 million performance grant and 10-year sales-tax rebate for Texas Materials headquarters
Summary
The Type A board approved a performance-based package for Texas Materials (CRH Americas) that includes a $2,000,000 grant, a 10-year sliding sales-tax rebate, and company commitments to $3,000,000 in capital investment and maintaining 169 full-time jobs.
The Cedar Park Economic Development Type A board approved a performance-based economic development agreement to anchor Texas Materials (a CRH Americas group company) in a 50,000-square-foot office in the Cedar Park Town Center neighborhood.
Staff described the package as a $2,000,000 performance-based grant coupled with a 10-year rebate of the EDC's portion of sales tax on a sliding scale: 100% in years one and two, 90% in years three and four, 80% in year five, and 75% in years six through ten. Staff said the company also will contribute $3,000,000 in capital to finish out the building and has committed to hire and maintain 169 full‑time employees; if the company extends its lease another 10 years, the rebate would continue at 75% for that extension period.
Jimmy Ball, Texas Materials director of land resources, told the board the company seeks consolidation and growth in the Cedar Park office and said the site near Costco will be convenient for employees. "We can actually double our employee count ... we can get up to about 160," Ball said when discussing capacity and future hiring plans. Staff said financial metrics show a payback of about 1.7 and a 95% rate of return on the project assumptions presented to the board.
A motion to approve was offered and seconded; the chair called for the question and recorded aye votes. The board approved the resolution and the performance agreement will proceed under the terms discussed.
