Council endorses Dell for state incentives program

The Austin City Council cleared the way Thursday for Dell Technologies to invest $10 million at its Parmer Lane facility and retain nearly 500 jobs through a state incentives program.

The council approved a resolution designating the company as an enterprise zone project under the Texas Enterprise Zone program, which would allow Dell to get a refund on its state sales and use tax. The Governor's Office of Economic Development and Tourism has the final say on the designation.

In its project summary, Dell said it plans to invest about $10 million at the facility over a five-year period. Dell would use $8 million for remodeling the building and "support the headcount growth of new employees." The rest of the investment would go toward new conference areas, smart building technologies, a loading dock and more.

Nearly 500 jobs would be retained and 40 full-time jobs would be created through the investment, according to the proposal.

"This complements our ongoing investment in our people, our facilities and our deep-rooted commitment to the Central Texas community," Dell said in a written statement following the vote.

The maximum possible refund from the state would be $1.25 million. The designation would not include any tax breaks from the city.

"The renovations and new equipment will allow Dell to continue to employ highly talented individuals and continue offering its wide ranging and award-winning products and services," the project summary said.

If approved, the designation would be Dell's first enterprise zone in Austin. In 2017, the governor's office approved four Texas Enterprise Zone projects for Dell in Round Rock, according to state records.

The state may award 105 designations every biennium. Austin can designate nine projects for the Enterprise Zone designation every two years.

Round Rock-based Dell, which is Central Texas' largest employer, employs 1,700 people at its Parmer Lane facility. The company has about 13,000 employees in Central Texas.