Title
Consider a resolution authorizing the Mayor to execute a First Amendment to the Economic Development Program Agreement with Dell Inc.
Body
In August 1993, the City of Round Rock entered into the first Chapter 380 Economic Development Agreement in Texas with a growing entity known at the time as DELL COMPUTER CORPORATION. The 1993 agreement established the terms that kick-started the sustainable growth of Round Rock, from which both the community and the state of Texas have greatly benefited over the past three decades.
The terms of the original agreement solidified what is now a statewide philosophy of performance-based economic development programs.These terms presently require a monthly "Program Payment" of 50% of "Property Tax Revenues" as well as 62.5% of "Includable Revenues.” Includable revenues are primarily based on Round Rock's "One Cent Sales Tax Revenues."
It is important to note that the local option sales taxes for property tax reduction, as well as the Type B corporation, are not subject to the original agreement or this amendment.This amendment simply extends the termination date of the agreement to December 31, 2099, and updates the company name to DELL INC.