Austin Courted United Airlines, Denied LCRA Rates
Utility Rate Hike Denied:
The Council rejected an ordinance that would have allowed the Lower Colorado River Authority (LCRA) to change its rates within city boundaries.Major Incentive for United Airlines:
An extensive incentive package was approved to attract a United Airlines maintenance facility to Austin.Generous Perks for United:
This package included a 10-year property tax abatement, tax-exempt bonds for construction, and waived city building/development fees until 1998.Flexible Site, Direct Pitch:
The facility's location was made "site neutral" (allowing for the new airport or Bergstrom Air Force Base), and a councilmember was designated to present the proposal to United Airlines in Chicago.
Full Transcript
UST M FOUNDED 1819 Austin City Council MINUTES For April 17, 1990 SPECIAL CALLED MEETING Council Chambers, 307 West Second Street, Austin, Texas Mayor Cooke called to order the special called meeting of the Council, noting the presence of all Councilmembers. ORDINANCE DENIED The Council, on Councilmember Barnstone's motion, Councilmember Carl-Mitchell's second, DENIED adoption of an ordinance regarding the Lover Colorado River Authority's request to change its rates within the City's corporate boundaries. (6-0 Vote, Mayor Pro Tem Shipman out of the room) PROPOSAL FOR UNITED AIRLINES Motion Councilmember Carl-Mitchell made a motion, seconded by Mayor Cooke to adopt a resolution approving an incentive package proposal for United Airlines maintenance facility as follows: "That the City Concil hereby adopts the (above) premises as findings and extends the following incentives, in accordance with state and local legislation, as inducement for the location of the new United Air Lines maintenance center complex ag Austin's new airport, as follows: 1. Abatement of all City of Austin real and personal property taxation to provide tax savings for a ten year period, 2. Provision of tax-exempt special facility revenue bonds to finance the construction costs of the facility, 3. Waiver of City of Austin building and development fees through 1998, 4. Special allocation of City employee team to facilitate United Air Lines site development and construction needs. Friendly Amendment Councilmember Barnstone offered a friendly amendment: "on the line where it says inducement for the location of the new United Air Lines maintenance center complex at Austin's new airport, add, or at Bergstrom Air Force Base, if available". Councilmember Carl-Mitchell and Mayor Cooke accepted the friendly amendment. After discussion they said it should be "site neutral". Friendly Amendment Mayor Cooke offered a friendly amendment that Councilmember Carl-Mitchell be on point, go to Chicago, and represent Austin to present the proposal. Councilmember Carl-Mitchell accepted the friendly amendment. Roll Call on Motion with Friendly Amendments ADJOURNMENT 7-0 Vote Council adjourned its meeting at 5:45 Ρ.Μ.