Apple To Build $1B, 133-Acre North Austin Campus

AUSTIN, TEXAS — Apple Inc. plans to build a $1 billion, 133-acre corporate campus in North Austin that will create up to 5,000 new jobs in the short term and add up to 15,000 once the site is built out, officials announced early Thursday.

The planned campus expands the Apple footprint in Austin, already the biggest corporate presence for the tech giant outside its own Cupertinto, Calif. headquarters. The new campus will be located less than one mile from an existing Apple campus east on Parmer Lane, officials said in a press advisory.

While the immediate plans call for 5,000 employees, the new campus could accommodate up to 15,000 workers, the company noted. Currently, there are some 6,200 Apple workers in Austin. The influx of additional jobs is expected to make Apple the largest private employer in Austin, company officials noted. If those predictions materialize, the envisioned worker levels would surpass those of Round Rock-based Dell Technologies that is currently the city's largest employer.

Jobs created at the new Apple campus will represent the breadth of functions including engineering, R&D, operations, finance, sales and customer support, according to Apple officials. But Austin techies might want to hold off on sending résumés to Apple, at least for now. According to company officials, site preparation won't start until 2019 and the first building won't be open until 30 to 36 months after that.

The new campus will include 50 acres of preserved open space and, like all Apple facilities worldwide, its work spaces will be powered by 100 percent renewable energy, company officials said.

The announcement caps a year of continued overall job creation at the company, company officials said. Apple added 6,000 jobs to its American workforce in 2018 and now employs 90,000 people throughout all 50 states, according to Apple. As announced in January, the company is on track to create 20,000 jobs in the U.S. by 2023, the company said, with employment bases exceeding 1,000 workers in 16 states.

“Apple is proud to bring new investment, jobs and opportunity to cities across the United States and to significantly deepen our quarter-century partnership with the city and people of Austin,” Tim Cook, Apple’s CEO, said in a prepared statement. “Talent, creativity and tomorrow’s breakthrough ideas aren’t limited by region or ZIP code, and, with this new expansion, we’re redoubling our commitment to cultivating the high-tech sector and workforce nationwide.”

Cook is no stranger to Austin, given the local presence of the company's largest outpost outside its California headquarters. The CEO visited the city in August 2017 to launch a new app development program at Austin Community College and other schools throughout the U.S.

Gov. Greg Abbott touted the news, crediting the city's existing dynamics and worker readiness for the big corporate overture: “Apple is among the world’s most innovative companies and an avid creator of jobs in Texas and across the country,” Abbott said in a prepared statement.

“Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers," Abbott continued. "I thank Apple for this tremendous investment in Texas, and I look forward to building upon our strong partnership to create an even brighter future for the Lone Star State.”

The area where the new campus will be located straddles Travis and Williamson counties, with the latter expected to reap the lion's share of property tax benefits among their various taxing entities given its location just across the county border. The county reportedly offered the company significant tax abatements as part of its financial incentives package to entice the company to expand locally.

Such incentives are common practice to lure industry, but generally a well-guarded secret as to their breadth. In perusing the agenda for the last Williamson County Commissioners Courtmeeting on Dec. 11, it appears the body discussed the matter privately in executive session — the portion of otherwise public meetings where they are allowed to discuss certain matters behind closed doors.

Even slated for executive session, the agenda items likely related to the deal were vaguely worded. "Discussion regarding economic development negotiations pursuant to Texas Government Code, Section 551.987," read one entry cryptically. "Business prospect(s) that may locate or expand within Williamson County," read another.

In contrast to such private negotiations, local officials publicly touted the expansion once Apple made the details public, lauding the move as the major economic development boon that it is. For Austin, the news is a measure of recompense after having lost the recent bid to land a massive second Amazon headquarters dubbed HQ2 that promised to create up to 50,000 jobs. Pursuit of that project pitted various cities against each other in inducing development, each offering a series of largely unknown financial incentives to the online retailing giant that posted $178 billion in 2017.

The highly sought HQ2 project ultimately was awarded to two of the finalist municipal contenders, New York City and Northern Virginia, as the online retailer announced in November. Officials at the Austin Chamber and others involved in area economic development have, in the aftermath, declined to reveal the breadth of financial inducements that had been offered to Amazon in its ultimately failed bid to land the deal, citing the proprietary nature of such negotiations.

Austin Mayor Steve Adler painted the imminent local expansion of Apple Inc. as an extension of the company's long and deepening ties with Austin: “Apple has been a vital part of the Austin community for a quarter century, and we are thrilled that they are deepening their investment in our people and the city we love,” Adler said in a statement. “Apple and Austin share a creative spark and a commitment to getting big things done. We share their commitment to diversity and inclusion. We’re excited they are bringing more middle-skilled jobs to the area. And we’re particularly gratified by their commitment to providing a great place to work for a large and growing number of America's veterans.”

Williamson County Director of Administration Rebecca Clemons expressed similar sentiments: “Apple is truly a part of our Texas family,” she said. “Apple’s vision on innovation, quality and simplicity align with the values here in Williamson County. We are both committed to continued job creation and outstanding quality of life. This new expansion is a perfect example of the astounding growth and opportunity that are possible when a company and a community work together.”

The local expansion is part of a broader effort by Apple to grow its employee base in regions across the U.S. over the next three years, company officials said. To that end, the company said it plans to expand by more than 1,000 employees in Seattle and the California cities of San Diego and Culver City, while adding hundreds of new jobs in Pittsburgh; New York City; Boulder, Colo.; Boston and Portland, Oregon. The company recently opened its newest office in Nashville and Apple’s Miami office is projected to double in size, officials added.

Austin Chamber of Commerce Board Chairman Phil Wilson noted the effort to coax Apple into the local expansion was multi-pronged, a pursuit embarked in tandem with Williamson County economic development officials.

“This is a momentous day for Apple, Williamson County, and the entire Central Texas region,"
Wilson said. "The creation of a new campus that will bring 5,000 new mid-skill, good-paying jobs to the region wouldn’t have been possible without the hard work and dedication of our partners in Williamson County, the State of Texas, and Apple’s desire to continue its investment in the region. We’re thrilled that Opportunity Austin is ending the year with this announcement from Apple —an already exemplary part of the Central Texas community and a great corporate citizen.”

To read the full Apple Inc. press release, click here.

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>>> Top image: The company's current facilities in Austin employ 6,200 workers, making it Apple Inc.'s largest presence outside of its Cupertino, Calif. headquarters. Photo courtesy of Apple Inc.