Travis County Commissioners Court
October 12, 2004
Item 17
17 was on the court's agenda two weeks ago, we said we would have it last
week, but we only had three members of the court present. Therefore at my
request we delayed action one week, it's to consider and take appropriate
action on request for economic incentives agreement for advance technology
development facility, inc., A for profit subsidiary of Sematech, inc., A nonprofit
corporation engaged in high technology research. We did not bless this contract
last time it came before us, we delayed that blessing to figure out what the
financial impact will be. Yesterday, our own leroy took a real good look and
conducted a financial analysis which he presented to us in a one-page printout.
This basically is the Sematech nonprofit transferring all of the capital to
the subsidiary, that value now is $45 million roughly.
>> that's correct.
>> in addition the subsidiary will acquire over the next
ten years $100 million in capital equipment and if we apply the proposed incentive,
then the present day value of that will be $2.7 million. Over a ten year period
it will be $3.4 million. The city's financial package was a little bit more
than that.
>> right. It was projected to be about $2.9 million present
value. The city's calculation did not take into account the 8-year depreciation
of the equipment. In conjunction with Sematech, i've worked through the TCAD
guidelines and applied those to these numbers and come up with this spreadsheet
with 2.7 million present value on the incentive package.
>> and we do have mr. Flowers and a Sematech representative
here with us if we do have questions. Two weeks ago we kind of routinely
took another week to mull over it, digest it a little bit, and this really
is to bring it back to give the go ahead and put together an appropriate contract.
Typically we try to work with the city of Austin to make sure that we have
pretty much the same terms and conditions and that would be my recommendation.
This time precinct 4 Commissioner Gomez is not here, but I suspect she would
like to proceed without her.
>> I second ob her behalf.
>> I move approval on her behalf. Anymore discussion? Any
additional comments? Moving in the right direction. A good move. All in favor?
That passes by unanimous vote. Thank you very much. Thank y'all for your patience
also.
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Last Modified: Wednesday, October 26, 2005 3:37 PM