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AlphaGraphics asks Hutto EDC for $400,000 in performance-based incentives to open production hub
Summary
AlphaGraphics presented a plan to open a Hutto location and requested $400,000 in city/EDC incentives (plus $125,000 in private in-kind discounts), saying the investment would create local production capacity, about 6–7 full‑time jobs and an estimated 10‑year economic return of roughly $3.5 million.
AlphaGraphics asked the Hutto Economic Development Corporation on June 8 to approve a performance-based incentive package that would help the company locate production equipment and staff in Hutto rather than outsourcing manufacturing to Austin.
“Project Air is a relocation of a downtown commercial business,” EDC staff said at the start of the public hearing. Jane Harvey, introduced by staff as the AlphaGraphics representative, said the company has signed a lease at Edgemont and Highway 79 and has already invested more than $40,000 and hired its first local employee. “The ask is a $100,000 for initial equipment technology reimbursement…$65,000 for furniture and fixture launch cash-flow stabilization…$60,000 in early job creation payroll grant…$50,000 opening startup grant…and $50,000 in sales tax reimbursement,” Harvey said, summarizing a $400,000 direct incentive request and an additional $125,000 in discounts and in‑kind services the firm offered the community.
Harvey and her team said the incentives would allow AlphaGraphics Hutto to install production equipment locally, accelerating launch and shifting roughly 80% of production to the Hutto site. The presenter estimated the operation would reach “6.5 FTEs” (six full-time employees and a part timer) with the incentive support and projected annual sales approaching $2 million within 10 years. The company’s 10‑year return-to-community estimate—combining tax benefits, payroll and local spending—was presented as about $3.5 million, or an 8.76x return on the $400,000 incentive.
Board members asked for clarifications on taxable sales share, turnaround times and the hub‑and‑spoke production model. Harvey estimated roughly 85% of the firm’s revenue would be subject to sales tax and said couriering production from Austin adds about one day to turnaround time; with local production, the company would be able to deliver faster. Staff later noted the EDC board would recommend consideration by city council for any incentive agreement; the EDPA for Project Air was deferred to a later meeting for formal consideration.
