DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: 8
SUBJECT:
City Council consideration of a Tax Abatement Agreement with Ernst & Young U.S. LLP (EY) and Farinon Building II, LLC (Farinon), and an Economic Development Incentive Fund (EDIF) Grant Agreement with EY, and nomination of EY project as a Texas Enterprise Zone Project.
SUMMARY:
Ernst & Young has chosen to expand its financial and technology support services in San Antonio. The company plans to make a capital investment of $8.5 million in real and personal property, create 600 new full-time jobs over five years, and maintain their current San Antonio employees. Staff is requesting City Council action on the following items related to the Ernst & Young project: (A) an Ordinance approving a 6-year, 100% Tax Abatement Agreement based on a capital investment of at least $8.5 million and the creation of 600 new full-time jobs over five years at the site; (B) an Ordinance approving a performance-based Chapter 380 Economic Development Incentive Fund (EDIF) Grant Agreement up to a maximum of $309,000 based on 309 new full-time jobs making $50,000 or more annually within the first five years; and (C) a Resolution nominating EY for designation as a Texas Enterprise Zone Project.
BACKGROUND INFORMATION:
EY is owned by approximately 3,200 US partners and principals and is a member of Ernst & Young Global Ltd., an organization founded in 1894 and based at 5 Times Square, New York, New York, with additional offices in the United States, Middle East, Australia, Europe, and Asia. The company is one of the "Big Four" accounting firms and in 2016 ranked No. 3 on Accounting Today's ranking of the top 100 accounting firms according to U.S. revenue. The company provides assurance, tax, auditing, advisory, enterprise risk management, entrepreneurial, and technology and security risk services to public and private companies in the automotive, energy, chemicals, financia...
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