PRESENTER: Presenter
Jeff Jewell, Director of Economic and Community Development
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SUBJECT: Title
Approval of a resolution recommended by the New Braunfels Economic Development Corporation authorizing an expenditure of up to $300,000 to TaskUs, Inc. for a project to promote or develop new or expanded business enterprises that create or retain primary jobs.
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DEPARTMENT: Economic & Community Development
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COUNCIL DISTRICTS IMPACTED: 3
BACKGROUND INFORMATION:
TaskUs is a business process outsourcing firm currently operating out of its New Braunfels headquarters. The company, founded in 2008, relocated to New Braunfels from San Antonio in 2018 and occupies 35,000 square feet in the Heritage Business Center. Currently, the company employs approximately 450 local employees and is seeking to expand their New Braunfels operations and add another 750 positions for a total of approximately 1200 local jobs.
ISSUE:
In order to expand to meet current and projected business needs, the company needs to expand their physical footprint. They are proposing to occupy an additional floor at their current location. This expansion will require tenant finish-out and furniture, fixture, and equipment (including a new back-up generator that can provide emergency power to the entire facility).
TaskUs is requesting a development incentive for up to $300,000 as a tenant improvement and development cot offset. The proposed terms of the incentive agreement are:
• Within 12 months of opening the expanded facility area, the Company will employ 700 full-time employees (this figure will increase to 750 within 24 months)
• Guaranteed local annual payroll will be $33,000,000 within 12 months of opening/occupying the expanded facility and $35,400,000 within 24 months
• On or before January 1, 2023 the combined ad valorem and business personal property total value will be at least $3,000,000 more than the established value of $21,300,380 as established on January 1, 2021.
FISCAL IMPACT:
This expansion project is projected to provide a 10 year net financial benefit to the City in the amount of $300,000 (not considering indirect impacts) and create 850 local jobs with weighted average annual salaries of approximately $47,000.
Recommendation
RECOMMENDATION:
The New Braunfels Economic Development Corporation Board met on December 16, 2021 and recommended approval of a tenant improvement offset incentive in an amount up to $300,000.
Staff recommends approval.