DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: 1 and 5
SUBJECT:
An Ordinance authorizing amendments to agreements between the City of San Antonio and Oracle America, Inc., and Site B Data Services LLC.
SUMMARY:
Staff is requesting City Council action to approve amendments to agreements of the City of San Antonio (City) as follows:
A. First Amendment to a Chapter 380 Economic Development Program Grant Agreement with Oracle America, Inc. (Oracle) passed and approved on May 15, 2014; and
B. First Amendment to a Chapter 380 Economic Development Program Grant and Loan Agreement with Site B Data Services, LLC (Site B) passed and approved January 14, 2010.
ITEMS FOR CONSIDERATION:
A. ORACLE
BACKGROUND INFORMATION:
Founded in 1977 and headquartered in Redwood City, CA, Oracle is a global provider of enterprise software and computer hardware products and services with $37 billion in revenue in 2016. A Fortune 500 company, it employs over 136,000 people worldwide.
In response to continued growth due to the acquisition of new customers and the expansion of existing client relationships, Oracle chose to expand at the facility located at 613 NW Loop 410 in City Council District 1 and create 200 new jobs.
On May 15, 2014, City Council approved a Chapter 380 Economic Development Program Grant Agreement with Oracle America, Inc. (Oracle Agreement). The Oracle Agreement provides for a grant payment of $5,000 per full time job, contingent on the company creating and maintaining a minimum of 200 jobs earning a minimum annual salary of $70,000, excluding benefits, by December 31, 2016. Currently, the company is exceeding its job creation requirements at the San Antonio site; however, it miscalculated the wages that it is required to pay all employees under the Oracle Agreement and has requested an amendment to its grant agreement. No grant payments have been made to Oracle thus far.
ISSUE:
Oracl...
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