Travis County Commissioners Could Approve Tesla Deal

AUSTIN, TX — The Travis County Commissioners Court on Tuesday is scheduled to take a key vote on potential financial inducements in a quest to land a plant from automaker Tesla.

The commissioners court remote meeting is scheduled to begin at 9 a.m. The Del Valle ISD board of trustees on July 9 approved an economic incentives agreement valued at $46.4 million to automaker Tesla, which seeks to build a plant in the southeastern portion of the county. Moreover, trustees for the school district — the taxing jurisdiction where the plant would be located — also moved to cap the taxable value of the envisioned auto manufacturing facility at $80 million.

Next up is the commissioners court action which would set the stage for construction of the plant — a gigafactory in the Tesla nomenclature —encompassing up to 5 million square feet on 2,100 acres of land straddling the State Highway 130 toll road. The plant would manufacture the Tesla Cybertruck electric vehicle and the company's Model Y, company officials have said in regulatory paperwork.

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Landing the plant would be an economic development boon for any municipality at any point in time, made more of a coveted project amid a state economy slowed by the coronavirus. The plant would create about 5,000 good-paying jobs, company officials have said.

But not everyone is as enthusiastic as civic boosters over the developing deal. On Monday, UNITE HERE Local 23, the hospitality workers’ union in Austin, issued a call to ensure pay equity for some of the envisioned plant's functions. According to union officials, commissioners Jeff Travillion and Brigid Shea are poised to vote to waive existing requirements to ensure contract food service workers earn a living wage under the agreement. Food service workers in Austin are predominantly women of color, and the median hourly wage in Austin is $11.39 per hour.

"Our union believes that all workers should earn $15 per hour, especially if taxpayer dollars are involved," union officials wrote.

Previously, the Texas AFL-CIO sent a strongly worded letter to commissioners ahead of the upcoming vote while categorizing financial incentives as a "handout," urging transparency in the process. The union asked commissioners to "...slow down and review the ramifications of public subsidies for a new Tesla plant," in a letter, a copy of which was provided to Patch.

Labor union officials framed their letter against the backdrop of the coronavirus pandemic to buttress their urging of caution. A pair of representatives provided statements apart from the correspondence to commissioners:

• "You have to look strongly at the track record of a company and their commitment not just to public dollars, but to the community investment and actual return on jobs created," United Auto Workers Vice President Cindy Estrada said in a prepared statement. "Tesla has a track record of collecting public subsidies from several states but not delivering on their promises. That is why it is important this time for Tesla to commit to community assurances for Travis County before getting subsidies. Things like paid sick leave are important not just to workers but the community as COVID-19 has shown."
• Added United Auto Workers Region 8 Director Mitchell Smith: "It's a buyer beware situation. If you look at the track record you have to wonder if this taxpayer money will result in the promised jobs. It is important to slow down at a time when governments are struggling with the budget effects of COVID-19 and make sure we have strong assurances to the community that these jobs will be good paying quality jobs, that there will be safety in the plant, and that there is a guaranteed community benefit."

Residents can watch Tuesday's meeting of the Travis County Commissioners Court live on Time Warner Cable Channel 17 (digital 10-17), Grande Communications channel 17 and AT&T UVerse channel 99. Residents also can watch live via the Travis County Commissioners Court website.