Austin Chamber Opposes Idea Of Ending The Domain Financial Incentives

AUSTIN, TX — The Greater Austin Chamber of Commerce has expressed concern over a city council member's suggestion of ending a financial incentives package with the developers of The Domain, a mixed-use housing and retail complex in the northern part of the city.

The suggestion by District 7 Austin City Council member Leslie Pool came on Monday amid city budget discussions during which revenue intakes and earmarks are studied carefully. The city approved a 20-year, $37 million tax break in 2003 with developers under conditions related to employment levels, job creation and development of affordable housing.

Mayor Steve Adler and others on the dais pushed back on the idea of essentially reneging on the deal, although stipulations were put into the original agreement that the agreement could be revisited by future councils. Now, the Austin Greater Chamber is adding its voice to the debate, agreeing with Adler that going back on the agreement would set an unwelcome precedent.

"We are deeply troubled by Council Member Pool raising questions that some would say cast doubt on Austin's integrity," Ellen Wood, this year's board chair at the Greater Austin Chamber of Commerce, said in a prepared statement. "The Austin City Council, acting on behalf of the citizens of Austin, executed an agreement in 2003 to develop The Domain."

A previous bout of buyer's remorse over the inducements— given the major financial outlays required of the city in maintaining it — spurred a 2008 referendum for registered voters in deciding the matter. The idea of ending the financial incentives then was rejected by voters, Wood reminded, suggesting the issue had long been settled.

"This agreement was voted on and approved," Wood said. "In 2008, Austin voters made it clear that integrity matters by affirming this agreement at the ballot box."

In short, the chamber vehemently opposes the idea of rescinding the deal, regardless of budgetary exigencies that might emerge, as Wood's statement concluded:

"The Domain took an enormous financial risk in 2003 when the city really needed their support and assistance," Wood said. "They played by the rules and have delivered an enviable master planned community that many are calling our second downtown. The suggestion by a public official that we might seek now to break this agreement sends a dangerous message in and out of the region that Austin is not trustworthy. It’s not the right way to treat people. We gave our word. We call on the City Council to defend the integrity of Austin citizens.”

Following Pool's musings on the deal's future, the chamber sent an action alert to members alerting them of the councilwoman's line of thinking. Within hours, Wood said, more than 100 business leaders reached out to City Hall asking council members to uphold the agreement.

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