Economic Development - City of Round Rock

The City of Round Rock is committed to transparency. The goal of the City of Round Rock is to be an open government in all areas. The City is increasing its efforts in transparency as it relates to economic development programs and incentives supported by our tax dollars that are designed to attract industry and investment, create jobs and otherwise grow the economy.

For more information on the Texas Comptroller’s efforts to encourage transparency among local governments, please visit their website at https://comptroller.texas.gov/transparency/.

The City of Round Rock enters into economic development agreements to promote development and redevelopment within the City, generate additional sales tax revenues, enhance our property tax base and improve the quality of life for our citizens. These programs abate or rebate property taxes and sales tax, include economic incentive payments, and/or reductions in fees that are not tied to taxes. The City’s economic development agreements are authorized under Chapter 380 of the Texas Local Government Code.

The City negotiates property tax abatement agreements and property tax, sales tax, and HOT tax rebates on an individual basis. Tax abatements are limited to ten (10) years in length. The City has an abatement recapture clause in all tax abatement agreements in the event that the recipient does not fulfill the requirements of the agreement. The tax rebate program is for a period of greater than 10 years, and taxes paid to the City are reimbursed back to the owner.

Tax Abatement & Rebate Summary

		New		Existing
Number of Tax Abatements & Rebates in Fiscal Year 2018		3		11

		Total		Per Capita*
Taxes Abated or Refunded in Year 1 of Active Agreements
2015 La Frontera Owner, LLC	$	75,928	$	0.68
Dell Computer Corporation		135,682		1.21
EastGroup Properties, LP ¹		–		–
Houghton Mifflin Harcourt (HMH) Publishing Company		10,157		0.09
Insys Therapeutics, Inc.		34,032		0.30
KR Acquisitions, LLC ¹		–		–
Medistar Round Rock Rehab, LLC ¹		–		–
Odyssey Technical Solutions, LLC		1,689		0.02
Proportion Foods, LLC		2,689		0.02
Round Rock Property Investors LP (formerly DAC)		9,040		0.08
RRTX Lake Creek Hotel, LP¹		–		–
Stonemill Hospitality, LLC¹		–		–
TOTKN, LLC¹		–		–
United Parcel Service, Inc.¹		–		–

Notes: 1 – Year 1 of agreement occurs in a future fiscal year.


Estimated Taxes Abated or Refunded for Life of Agreements
2015 La Frontera Owner, LLC	$	501,877	$	4.47
Dell Computer Corporation		80,981,326		721.75
EastGroup Properties, LP		92,965		0.83
Houghton Mifflin Harcourt (HMH) Publishing Company		25,204		0.22
Insys Therapeutics, Inc.		144,878		1.29
KR Acquisitions, LLC		TBD		–
Medistar Round Rock Rehab, LLC		237,575		2.12
Odyssey Technical Solutions, LLC		32,694		0.29
Proportion Foods, LLC		175,243		1.56
Round Rock Property Investors LP (formerly DAC)		52,154		0.46
RRTX Lake Creek Hotel, LP		440,000		3.92
Stonemill Hospitality, LLC		4,000,000		35.65
TOTKN, LLC		TBD		–
United Parcel Service, Inc.		1,834,180		16.35

Number of Jobs Created/Retained by Agreements Total Capital Investment Received for all Active Agreements *Based on population as of September 2018	$	14,939 530,250,000 112,201