Home > The Ticker
Council members praise two tech projects
Austin City Council members heaped praise Wednesday on two tech companies - Facebook Inc. and Yingli Green Energy Americas Inc. - that are considering expansion projects in the city.
Facebook, a leader in Internet social networking, has applied for $200,000 in city incentives over 10 years for an online sales and operations office that would employ 200 people over four years.
Yingli is requesting $354,565 in city incentives over 10 years in connection with a project that includes a North American headquarters and solar panel assembly plant that would employ more than 300 people within three years.
The special council meeting was designed to hear city staff information and comments on the two economic development projects. The council is expected to vote on incentives contracts for both projects March 11.
Facebook has indicated that it will locate in Austin if it receives city incentives. The company already has received a commitment for $1.4 million from the Texas Enterprise Fund. Its expansion would be the company’s first outside of Northern California.
Yingli officials have said they have narrowed their location decision between Austin and Phoenix. The company has not yet received a commitment from the Enterprise Fund. Yingli has said it wants to make its location decision by mid-March.
Council members praised the projects for potentially building Austin’s tech community in green energy and in online social networking.
“I am excited about the competition with Phoenix and I hope we get this passed,” said Council Member Randi Shade. “We really want to be a leader in this industry (solar power) and not be reliant on foreign fuel. This is really an important get for us.”
“Facebook is a launching pad of greater things to come,” said Mayor Pro Tem Mike Martinez. “Facebook is only in its infancy. The opportunities for expansion are unlimited.”
The only criticism of either project came from the Austin Interfaith Council which said it could not get a firm figure for Yingli’s lowest wage for its project. Yingli has indicated that its average wage for entry-level workers would be $13.50 an hour plus benefits.
“Our question is why can’t we get a better deal on wages? Why won’t the company publicly say what its lowest wage will be?” said Louis Malfaro, who is a member of Austin Interfaith’s executive team.
Permalink | Comments (0) | Post your comment
Reports: IBM cuts workers, including in Austin
IBM Corp. fired at least 1,700 workers companywide on Monday, according to an employee organization tied to the Communications Workers of America union.
The organization, Alliance@IBM, said workers were cut in a variety of divisions, including in the Systems Technology Group, which employs workers in Austin. IBM has more than 6,000 Austin employees primarily involved in hardware and software development.
The company did not comment directly on the job reductions.
“We continually remix our skills and structure to meet the changing needs of our clients,” said company spokesman Douglas Shelton at IBM headquarters in Armonk, N.Y.
Permalink | Comments (1) | Post your comment Categories: IBM
Delta adds Austin-Cincinnati nonstop
Delta Airlines is adding a nonstop flight from Austin to Cincinnati, with a schedule that allows one-day trips to the Ohio city.
The flights start June 11. Morning flights leave Austin at 6:30 and arrive in Cincinnati at 10:22. Return flights leave at 8:15 p.m, arriving back in Austin at 10:35.
It’s the second new nonstop to be announced for Austin-Bergstrom International Airport in the past week. Branson AirExpress will start nonstops to Branson, Mo., in May.
Permalink | Comments (11) | Post your comment Categories: Air Travel
Dell postpones closing of North Carolina plant
Dell Inc. told workers at its North Carolina computer assembly factory today that it will keep the plant open three months longer than expected.
Dell had announced it October that it would close the Winston-Salem plant, its largest in North America, in January as part of a move to streamline its manufacturing operations. In December, Dell said the plant would remain open through April. On Friday, the company told workers it was postponing the shutdown until the end of July.
The plant employs 400 workers after 500 jobs were cut in November. Dell also employs an undisclosed number of temporary workers there.
Dell officials said this month that customer demand for computers was surprisingly strong during its fourth quarter, which ended in late January.
Permalink | Comments (0) | Post your comment Categories: Dell Inc
Another award for Austin ad agency
Austin advertising agency LatinWorks has again been named Multicultural Agency of the Year by an industry trade publication.
The recent recognition from trade publication Adweek comes on the heels of LatinWorks receiving the same honor from Advertising Age magazine.
LatinWorks CEO Manny Flores said his agency was “blown away” by the news. “As anyone who has worked with us knows, our team gives it their all every day for our clients, and this recognition affirms that dedication,” he said.
Last year was a breakout year for the Austin agency, marked by a number of new clients such as Burger King Corp. LatinWorks also won a best in show award at Advertising Age’s Hispanic Creative Advertising Awards.
But the agency made its biggest splash with a quirky ad for Starburst candy featuring a candy-chewing llama.
The commercial became a hit on YouTube and was one of the most-liked TV ads of 2009, according to Nielson IAG Ratings. It also won a Silver Lion award at the Cannes International Advertising Festival.
Permalink | Comments (0) | Post your comment Categories: Advertising
Chinese solar manufacturing company proposing $20.7 million Austin plant
A Chinese solar energy company is proposing to build a solar-panel plant in Austin, investing $20.7 million and creating more than 300 jobs.
In return, the city of Austin is proposing to give the company an 80-percent break on property taxes on the plant and equipment.
Yingli Green Energy, the U.S. subsidiary of a large Chinese solar energy company, also is negotiating with Phoenix, Ariz., according to Dave Porter, senior vice president for economic development at the Greater Austin Chamber of Commerce.
The company also has applied for incentives from the U.S. Department of Energy under a federal clean-energy stimulus program, he said.
The jobs would pay an average of about $35,000, ranging from $13.50 an hour for manufacturing workers to $50,000 for 55 staff workers and $125,000 for 2 top executives.
Austin would become the company’s U.S. headquarters, according to the proposa;.
Permalink | Comments (9) | Post your comment
Austin could land 500 Facebook, solar plant jobs
Austin could gain more than 500 new jobs with proposals by a Chinese solar energy company that is considering building a $20.7 million manufacturing plant here and by Facebook to open a sales office here.
Gov. Rick Perry announced the Facebook proposal this morning, and said the state would provide $1.4 million in incentives, conditioned on the approval of local incentives.
Facebook, the top social networking site, would create a 200-employee sales and operations center in Austin, with about 180 of those jobs filled locally. The average wage would be $54,000 a year.
The city is proposing an incentives package totaling $200,000, tied to job creation targets, said Brian Gildea, Austin’s economic development manager.
The city also is proposing property tax breaks for Yingli Green Energy Associates, which is considering Austin for a solar-panel manufacturing plant that would create more than 300 jobs. Austin also would become Yingli’s U.S. headquarters.
Yingli, the U.S. subsidiary of a large Chinese solar-energy company, would get 80-percent property tax breaks for 10 years under an incentives offer from the City of Austin.
The company also has received preliminary approval for a federal clean-energy grant, said Dave Porter, senior vice president for economic development at the Greater Austin Chamber of Commerce.
Yingli also is considering Phoenix, Ariz., Porter said. The company needs to choose a site by March 15 in order to qualify for the federal grant.
The Yingli jobs range from 245 manufacturing workers who would make $13.50 an hour to 45 staffers at $50,000 a year and 2 executives at $125,000 a year.
The City Council will have public briefings on both proposals next month, with public hearings and votes to follow on March 11.
Details on both proposals are on the city’s Web site, at www.ci.austin.tx.us
Permalink | Comments (61) | Post your comment
Intel, Dell pledge to hire more college grads
Intel Corp. CEO Paul Otellini announced an alliance by tech companies to spur the hiring of new college graduates in technical jobs this year. The group includes Dell Inc., one of Intel’s leading customers.
The Invest in America Alliance aims to enhance the nation’s competitiveness in technical fields including clean technology, information technology and biotechnology.
As part of the plan, Intel plans to join with 24 venture funds to invest $3.5 billion in new tech-based companies over the next two years.
It also has joined with a group of companies that have committed to increase hiring of college graduates this year.
“Dell is among a number of companies that are committed to the pledge of increasing college hiring this year,” said Dell spokesman David Frink.
Dell expects to hire about 200 engineering and technical workers in the U.S. this year, up from 150 last year. It also expects to hire college graduates with finance and marketing degrees, Frink said.
Other companies who have pledged to increase college hiring as part of the effort include: Accenture, Adobe Systems Inc., Broadcom Corp., CDW LLC, Cisco Systems, eBay Inc., General Electric Co., Google Inc., Hewlett-Packard Co., Liberty Mutual Group, Marvell Semiconductor Inc., Microsoft Corp. and Yahoo Inc.
Permalink | Comments (11) | Post your comment Categories: Dell Inc
Austin getting nonstop flight to Branson, Mo.
Update: Branson AirExpress is offering $49 fares, each way, to kick off the service.
The new flights will leave Austin at 8 a.m. and arrive in Branson at 9:30 a.m.The return flight leaves at 4:45 p.m. and arrives in Austin at 6:15.
The promotional fares are available through April 17 for flights through June 17.
Additionally, Austin travelers will have another option for flying to Atlanta. They can take the new nonstop to Branson and connect there on AirTran to Atlanta, said Deidre McCormick marketing manager for Branson AirExpress.
Austin is getting a new nonstop flight to Branson, Mo., starting May 17.
The flight to the popular entertainment destination will be operated by ExpressJet but under the name of Branson Air Express, said Jason Zielinski, spokesman for Austin-Bergstrom International Airport.
The flights will be available five days a week, Monday through Wednesday and Friday and Saturday, he said.
Flight times were not immediately available. The airport is holding a news conference later this morning to provide more information.
Permalink | Comments (11) | Post your comment Categories: Air Travel
Pedernales board rejects reform bylaws
JOHNSON CITY - In a contentious meeting this afternoon, the Pedernales Electric Cooperative board balked at passage of new bylaws touted as solidifying reforms the co-op has made over the last 18 months. Among those voting no were the last remaining members of the old guard on the board — directors O.C. Harmon and R.B. Felps. Director James Williams abstained, effectively blocking passage.
The proposed bylaws needed a two-thirds vote of the seven-member board to pass. Board president Larry Landaker, Patrick Cox, Kathryn Scanlon and Cristi Clement voted for passage. The board approved a separate measure, a proposed bill of rights for Pedernales members that outlines their rights to fair elections, access to co-op meetings and open records. That measure will require ratification by the co-op’s general membership at its annual meeting in June.
Permalink | Comments (11) | Post your comment Categories: Other
Austin company buys rights to much-anticipated game
Austin gaming studio Heatwave Interactive has bought the rights to a much-anticipated online game and company officials say the purchase will bring more jobs to town.
The PC game, Gods and Heroes: Rome Rising, is a massively multiplayer online game in the same genre as World of Warcraft.
It had been in development for years, but was shelved after publisher Perpetual Entertainment shut down in 2007.
Heatwave recently purchased the rights to the game and all of the related assets for “pennies on the dollar,” CEO Anthony Castoro said.
The move changes Heatwave’s profile from a local startup to a potential industry-wide player.
The company has restarted development on the game and will be hiring a team in Austin — which will “easily” lead to 20-30 hires, Castoro said.
One benefit to buying a game relatively late in development, Castoro said, is that another company has already put “85 percent of the work in,” leaving Heatwave to work on the finishing touches.
“We think it could be really big,” he said.
But Heatwave didn’t just purchase the rights to a new game — the company also bought the development engine on which the game operates. Heatwave also bought the source code to Perpetual’s online gaming platform — which can now be used to run future offerings from the Austin company.
Before the plug was pulled, Gods and Heroes had been getting significant buzz in the gaming universe. At the 2006 Electronic Entertainment Expo, the game won a number of awards from industry web sites.
“Gods and Heroes was designed for both core and casual MMO players alike and Heatwave is one of the few studios with the talent and experience to fulfill this vision while delivering a final version that will fit with what today’s gamers are looking for,” Chris McKibbin, co-founder of PlayGrid, and former president of Perpetual Entertainment, said in a statement.
Castoro wouldn’t outline a specific timeline, but he said his team will spend “less than two years, but more than a few months” on development.
While Gods and Heroes was originally envisioned as a monthly fee-based game, Castoro said the company will decide whether that’s ultimately the right direction.
“I think what we want to do is make a game that lots of people want to play,” he said. “And we’re going to make it as easy and as fun to get into as possible.”
Permalink | Comments (0) | Post your comment
Michigan medical device company to open Austin office
A Michigan medical devices company will create 30 jobs in Austin with the opening of a marketing and product development office later this year.
Pioneer Surgical Technology announced last month plans to expand into Austin. The company will lease 11,000 square feet of office space in Northwest Austin for an office to open in the second quarter, the Greater Austin Chamber of Commerce said.
The company is based in Marquette, in Michigan’s Northern Peninsula, and develops spine, orthopedic and biologics products. Its manufacturing facility is in Marquette, but it has sales offices in other cities.
Last month, CEO Jeff Millin said the company chose Austin because of its central location to customers and potential customers.
“Having a strategic base of operations here in addition to our Marquette, Mich., headquarters allows us to take advantage of Austin’s proximity and talent, while still maintaining a strong connection to our successful heritage. This is a crucial component of Pioneer’s future growth plans”
Permalink | Comments (2) | Post your comment Categories: Medical Devices
Dell reports stronger revenue in Q4
Dell Inc. reported a healthy increase in revenue for the fourth quarter, which was the company’s first period that included operations from its Perot Systems acquisition.
Dell reported a profit of $334 million, or 17 cents a share on revenue of $14.9 billion for the quarter ended Jan.29. That compared with a profit of $351 million, or 18 cents a share, on revenue of $13.4 billion for the fourth quarter a year ago.
For all of fiscal 2010, Dell reported a profit of $2.05 billion, or $1.05 a share, on revenue of $52.9 billion. That compared with a profit of $2.85 billion, or $1.44 a share, on revenue of $61.1 billion the previous year.
Dell completed its $3.9 billion acquisition of Perot Systems Corp., a major provider of computer services, last November.
Permalink | Comments (0) | Post your comment Categories: Dell Inc
Valence to provide batteries for hybrid yachts
Austin-based Valence Technology Inc. said it signed an agreement to provide rechargeable batteries to the world’s largest sailing yacht maker.
Beneteau Group will use Valence batteries in all of its hybrid electric boats that use a hybrid drive system.
Beneteau estimates that the agreement will produce $9 million in revenue for Valence in the first years. Over the five years of the agreement, the total could be $45 million.
In the past 12 months, Valence’s total revenues have been about $17.4 million
“Beneteau is setting a new blue-water standard for cleaner sailing yachts,” said Valence CEO Robert Kanode.
The hybrid boats emit little or no emissions, reduce fuel use and require less maintenance than traditional diesel marine systems.
Valence shares were up 18.5 percent, to 97 cents, on the news
Permalink | Comments (4) | Post your comment
Heart Hospital price was $83.6 million
MedCath Corp. and the doctors who co-own the Heart Hospital of Austin sold the facility for $83.6 million, according to a securities filing Wednesday morning.
Late Tuesday, St. David’s HealthCare agreed to buy the 58-bed hospital at 38th Street and North Lamar Boulevard, but the price was not disclosed at the time.
MedCath, based in Charlotte, N.C., owned 71 percent of the cardiac specialty hospital and the doctors who founded it 11 years ago owned the rest.
Pending approval by regulators, St. David’s will take over the hospital by the end of June, the securities filing said.
MedCath said it will get $26 million from the sale, after various payments and accounting provisions. They include repayment $35.3 million in secured debt owed by the Heart Hospital.
Permalink | Comments (2) | Post your comment Categories: Health Care
Dell’s investment firm seeking to raise a $500 million fund
Michael Dell’s private investment firm, MSD Capital, is raising a $500 million public fund to invest in distressed European companies.
MSD Capital, which has some $10 billion in assets under management for Michael Dell and his family, plans to open the new distressed asset fund. This is the first time that MSD Capital has opened up an investment fund for outside capital.
A spokesman for MSD Capital declined comment.
According to the Financial Times, the MSD European Opportunity Fund is one of several funds being raised to pursue distressed companies.
MSD Capital’s existing fund has been investing in European distressed and undervalued securities since 2006 with a gross internal rate of return of about 20 percent.
Michael Dell and others tied to MSD Capital are expected to invest at least $225 million in the fund.
Permalink | Comments (0) | Post your comment
LatinWorks gets new national account
Austin advertising agency LatinWorks has been named the Hispanic agency of record for national department store chain Marshalls.
The agency will be charged with developing the discount retailer’s Hispanic advertising strategy. Austin’s biggest ad agency, GSD&M Idea City, is already handling general market work for Marshalls.
“LatinWorks showed an insightful understanding of our Hispanic business needs,” said Emily Trent, Marshalls’ vice president of marketing, in a release.
LatinWorks CEO Manny Flores said in a release that Marshalls is “uniquely positioned” to make gains in the current economic environment.
“It’s with great pride that we join them in accelerating their growth within the rapidly expanding Hispanic market,” Flores said.
Permalink | Comments (2) | Post your comment
Sales tax report is mixed for Central Texas cities
February was a mixed bag for Central Texas cities in terms of sales tax revenue.
Kyle had a 25 percent increase compared to February 2009, thanks to new retail openings, and San Marcos was up 3.7 percent — the first increase in seven months, Mayor Susan Narvaiz said.
But several other area cities continued to see drops in a key source of revenue, based on sales tax allocations they received this month from the Texas Comptrollers Office for sales that occurred in December.
Austin’s allocation was up 11.4 percent, but city officials said the figure included two adjustments, including one for several unnamed business that had been remitting their sales taxes to the wrong city instead of Austin and an audit correction that reduced the February 2008 figure by $486,000.
Without those adjustments, Austin’s sales tax revenues were down 2.4 percent for the month.
Among other large Texas cities, Fort Worth and San Antonio were down 0.2 percent, Dallas was down 4.2 percent and Houston was down 12.4 percent.
Permalink | Comments (2) | Post your comment Categories: Austin economy
Incentive proposal for LegalZoom advances
Los Angeles-based LegalZoom.com Inc. on Thursday got a step closer to creating a regional headquarters in Austin, as the City Council was briefed on an incentives package for the company.
Under the proposal, the city would pay LegalZoom $20,000 a year for 10 years, tied to meeting job creation targets that start at 50 jobs this year and rise to 600 after five years. The Texas Enterprise Fund would kick in $1 million if the city incentives win City Council approval.
Kevin Johns, director of the city’s Economic Growth and Redevelopment Service department, said the city gave the company a score of 75 out of a possible 100 points on a matrix that includes considerations such as whether the company is in a targeted industry and whether it could help attract other companies to Austin.
Three people, including representatives from the Greater Austin Chamber of Commerce and the Austin Asian American Chamber of Commerce, spoke in favor of the incentives. No one spoke in opposition.
Austinites can submit comments on the proposal through 5 p.m. Sunday.
On Feb. 18, the City of Austin will hold a public hearing and vote on the package.
In documents filed with the city, LegalZoom said it expected to fill 90 percent of its jobs locally, except for top executives and some managers and supervisors. The median annual wage for the first 50 jobs would be $31,000.
Permalink | Comments (1) | Post your comment Categories: Economic Development
Dell to buy California software company
Dell Inc., has agreed to acquire a California systems management software company in a bid to bolster its product offerings to small-to-mid-sized business and government customers.
Dell will buy Kace Networks Inc. of Mountain View, Calif., for an undisclosed price. The company, which employs about 125 workers, creates software to help mid-sized customers manage computer assets, deploy software, provide security and manage a service desk.
The software is designed for small to mid-sized businesses as well as government, education and health institutions. Its primary software product family is called Kbox and it supports systems that run Windows, Macintosh and Linux software.
“We talk directly to thousands of these customers and they tell us they need systems management tools geared for their environment,” said Steve Felice, president of Dell’s business segment tied to consumers and small-to-mid-sized businesses. “The Kbox family of appliances is highly capable, quick to deploy, simple to use and provides a rapid return on investment, exactly the sort of best-value solutions we’ve delivering to customers.”
Permalink | Comments (0) | Post your comment
Dillard’s at the Domain to open March 11
Dillard’s plans to open its new store at the Domain on March 11.
The store, on Braker Lane east of MoPac Boulevard, is part of an expansion of the North Austin retail/residential/office project owned by Simon Property Group.
The 600,000 square-foot expansion also includes a Dick’s Sporting Goods, a Gold Class Cinema, apartments and office space.
The 208,000 square-foot department store will be Dillard’s fifth in the region. The others are at Barton Creek Square, Lakeline Mall, Highland Mall and the Hill Country Galleria.
Hanger Orthopedics Group also is moving into the Domain, establishing its headquarters in offices that are part of the expansion.
Permalink | Comments (1) | Post your comment Categories: Retailing
Latest comments
AMAT having layoffs today. Don’t know how many, but it is going down on Wed, Mar 3.
... read the full comment by JohnK | Comment on Reports: IBM cuts workers, including in Austin Read Reports: IBM cuts workers, including in Austin
Aw, stop hatin’ on the ‘nati, y’all! If you’ve never been, now’s the time to check it out. The city has truly come a long way. Why visit? Cincinnati is home to the largest united arts fund in the country - we have a killer
... read the full comment by don't trash the 'nati! | Comment on Delta adds Austin-Cincinnati nonstop Read Delta adds Austin-Cincinnati nonstop
Cincinnati is the home of Proctor & Gamble (Ivory Soap), Sunny Delight and Kroger. Neato.
... read the full comment by Wowsers | Comment on Delta adds Austin-Cincinnati nonstop Read Delta adds Austin-Cincinnati nonstop
I don’t know anything about Cincinnati. What is there?
... read the full comment by Wondering | Comment on Delta adds Austin-Cincinnati nonstop Read Delta adds Austin-Cincinnati nonstop
See more recent comments