City Approves Economic Development Agreement for Emerson Expansion
The Round Rock City Council on Thursday (Feb. 24) approved an economic incentive agreement with Emerson that will result in a new investment of $9 million and the creation of at least 50 new jobs.
The Round Rock Transportation and Economic Development Corporation and the city council approved a Chapter 380 agreement with the company, which has been located in Round Rock since 2011, at their respective regular meetings Thursday night.
Emerson is a global engineering, technology and software company that specializes in helping manufacturers around the world optimize their operations to improve production, reliability and safety, and to achieve the goals of durability. The agreement requires Emerson to invest at least $9 million in real estate improvements and corporate personal property at its existing corporate headquarters at 1100 W. Louis Henna Blvd. by December 31, 2023. In addition, it must add 50 to 60 additional employees as a result of the proposed expansion and improvements by the end of the agreement.
“Emerson continues to be one of Round Rock’s largest employers and has been a vital community partner for more than a decade,” said Jordan Robinson, Round Rock Chamber Interim President and CEO. “We are thrilled that Emerson is committing to invest in its Round Rock headquarters to create a next-generation workspace and collaborative environment for current and future employees.
In return for Emerson meeting its obligations, Economic Incentive Payments (EIPs) totaling $500,000 will be issued through the City’s Type B sales tax fund, divided into two payments made when the company receives a building permit and a certificate of occupancy. The agreement is performance-based and includes clawback provisions if Emerson fails to meet its obligations.
The city council also passed a resolution Thursday night nominating Emerson for the Texas Enterprise Zone Program (EZP), which is a state sales and use tax rebate program designed to encourage private investment and job creation. If selected by the state to participate in the program, the project must commit to hiring 35 percent economically disadvantaged, veterans, or enterprise area residents for new or replacement staff for the project. establishment, for certified jobs over the next five years, due to its location. outside of a designated enterprise zone.
“Emerson moved to Round Rock more than 10 years ago and has enjoyed the long-term support and collaboration with the town of Round Rock and the business community here,” said Nathan Pettus, president of the Process business. Emerson Systems and Solutions. “We thank the City for this continued support of our capital investment plans that will help us attract and retain employees and grow our business in Round Rock.”
Emerson was represented at meetings by Michael Lateur with Kroll LLC.
The city’s economic development program, which includes incentive payments like the one approved Thursday night, has generated an additional $494.9 million in net taxes to be used on City of Round Rock services and programs since its inception there. is over 15 years old.