AUSTIN | Economic Development

[We vs us]

Originally Posted by undergroundman

I'm a little tempered in my enthusiasm. Elon wants to roll out vehicles by the end of the year. While he tends to make grandiose goals to push and motivate his people, 2-3 years is a far cry from end of the year. His end of year goal could have been a negotiating tactic. Giga Nevada took 2 years just to complete after ground breaking.

This is one of the reasons Austin Green makes me go "huh." The other is what looks like no existing rail connections whatsoever. Am I sussing that out correctly?

Why would he choose this site when there seem to be many more shovel-ready better-connected options in other places?

[undergroundman]

Originally Posted by freerover

Hmmm. Maybe the increased density in the Velocity development is correlated with the Tesla factory. That would put the factory near 130/71 in another development zone. The only thing is there is no freight rail line. All cargo would need to be trucked to a freight rail facility via 130.

I recall about 15 years ago when I had a house on Thornton Rd in south Austin butting up against the railroad tracks that there was discussion of moving the Union Pacific rail to run along 130. The impetus was to get cargo(sometimes hazardous) rail out of densely populated areas. At the time, the cost was about $1.2B. Union Pacific balked at the price without assistance from the State. I wonder if that discussion will be revisited as part of the negotiations. In any case, I can't imagine that it would cost that much to lay tracks in the median of 130 from this location to the tracks at 130/290.

[undergroundman]

Originally Posted by We vs us

This is one of the reasons Austin Green makes me go "huh." The other is what looks like no existing rail connections whatsoever. Am I sussing that out correctly?

Why would he choose this site when there seem to be many more shovel-ready better-connected options in other places?

Yea I agree, there's a huge gap in the timelines. I'm not sure though that cars rolling off the production by the end of the year is a realistic goal in any location he chooses. I think the China factory took a year to build out, and that was a feat.

He tends to over promise and under deliver when it comes to timelines. I believe he was a year behind schedule with his initial goal of rolling out the Model S. So if we follow that pattern, he's really looking to roll out the CyberTruck by the end of 2021. With a year to construct the factory, it becomes a more realistic timeline. It all depends then on permitting.

I kinda think that timeline requirement was in part a test to gauge how friendly the local government is to business, given his recent spat with the local government in Cali. We'll see how the city of Austin responds. Delia Garza has an opportunity to do something great for her constituents before she leaves office. It's a chance to bring jobs to the area that aren't tech jobs, which typically have been considered in the past as jobs that gentrify the area.

[We vs us]

Just to muddy the waters a bit, one of the Tesla rumors sites says that Tesla has an option to buy the entirety of the Austin Green site -- all 2100 acres. FWIW, Elon himself replies on twitter that they have an option to buy but haven't exercised it yet.

Tesla has purchased a 2,100-acre plot of land 12 miles outside of Austin in what could be the home to its upcoming Cybertruck production facility.

An application from the Texas Comptroller’s office describes Tesla’s plans to develop and design a “high-tech electric vehicle manufacturing plant in Travis County.” This provides a strong indicator that Tesla has chosen Texas to be the home of its next EV production facility.

The application states, “Tesla Inc is evaluating the possible development, design, and construction of a high tech electric vehicle manufacturing plant in Travis County within the Austin Green property located at the intersection of SH-130 and Harold Green Road. Attached is an exhibit that shows the planned layout of the facility on the site and is subject to confidentiality assertions above.”

The red outlined area is the plot of land that Tesla has reportedly purchased.

https://www.teslarati.com/tesla-cybe...xas-confirmed/

[Novacek]

So the Green PUD (housing/parks/mixed use) is dead?

Hard to move it forward with the council while this (seems to be) in play.

Add:

So I've read through the linked document.

https://assets.comptroller.texas.gov...lorado-app.pdf


Part of me still thinks this is mostly a play to get better terms out of Hutto or another location. The site is within Austin ETJ, and even with the changed annexation procedures I'd expect the city to ask for annexation in return for providing services to it (as Green PUD was to be).
If nothing else, I'm guessing it would start months of discussion that certainly would slow down his supposed proposed timeline.

[H2O]

Originally Posted by undergroundman

I recall about 15 years ago when I had a house on Thornton Rd in south Austin butting up against the railroad tracks that there was discussion of moving the Union Pacific rail to run along 130. The impetus was to get cargo(sometimes hazardous) rail out of densely populated areas. At the time, the cost was about $1.2B. Union Pacific balked at the price without assistance from the State. I wonder if that discussion will be revisited as part of the negotiations. In any case, I can't imagine that it would cost that much to lay tracks in the median of 130 from this location to the tracks at 130/290.

That relocation proposal was to facilitate Lone Star Rail from San Antonio to Georgetown. The relocation actually had to go significantly east of 130, closer to Bastrop due to terrain. When SH 130 was designed, they took horizontal curvature requirements for rail into mind, but did not consider vertical curvature. That would be an issue for commuter rail, but freight rail requires very low inclines - about 1% or less. Freight tracks in the median of SH 130 would require significant structures and rebuilding existing automobile bridges, overpasses and interchanges. The cost would be significantly more than the proposed more eastern bypass proposal.

[undergroundman]

So I guess if the PUD is dead, then jurisdiction goes back to the county for permitting and such? It would explain why there's no mention of the city of Austin being involved in the talks.

Incidentally, I've recently confused Federal Opportunity Zones with Triple Freeport Zone. I recalled a while back that within Del Valle, there was a zone that allowed inventory to be exempt from some level taxes if it left the warehouse within something like 90 days. I thought that was an Opportunity Zone. Turns out that the correct name for the zone is Triple Freeport. Velocity is within this zone. But I can't find a map to show if the Austin Green land is within that zone as well. If it is, it would explain in part why this parcel was selected over others that have similar size and other advantages.

[Novacek]

Originally Posted by undergroundman

So I guess if the PUD is dead, then jurisdiction goes back to the county for permitting and such? It would explain why there's no mention of the city of Austin being involved in the talks.

Incidentally, I've recently confused Federal Opportunity Zones with Triple Freeport Zone. I recalled a while back that within Del Valle, there was a zone that allowed inventory to be exempt from some level taxes if it left the warehouse within something like 90 days. I thought that was an Opportunity Zone. Turns out that the correct name for the zone is Triple Freeport. Velocity is within this zone. But I can't find a map to show if the Austin Green land is within that zone as well. If it is, it would explain in part why this parcel was selected over others that have similar size and other advantages.

The document has a section asking
"Is the land on which you propose new construction or new improvements currently located in an area designated as a reinvestment zone under Tax Code Chapter 311 or 312 or as an enterprise zone under Government Code Chapter 2303?"

And it has "No" checked.


Just googling, so I don't know the provenance of the map, but it looks to be just outside the federal opportunity zone

https://opportunitydb.com/tools/map/

[undergroundman]

Originally Posted by H2O

That relocation proposal was to facilitate Lone Star Rail from San Antonio to Georgetown. The relocation actually had to go significantly east of 130, closer to Bastrop due to terrain. When SH 130 was designed, they took horizontal curvature requirements for rail into mind, but did not consider vertical curvature. That would be an issue for commuter rail, but freight rail requires very low inclines - about 1% or less. Freight tracks in the median of SH 130 would require significant structures and rebuilding existing automobile bridges, overpasses and interchanges. The cost would be significantly more than the proposed more eastern bypass proposal.

Very interesting. There's also a spur that ends somewhere on Burleson Rd. The same one that crosses I35 and Ben White. I still see trains crossing that intersection, so it's still in use. I wonder if they could extend that line, but I can't envision the path it would take that wouldn't require expensive land acquisition.

[Novacek]

Found a freeport map

https://www.austinchamber.com/econom...nts-exemptions
https://cdn1.austinchamber.com/archi...048.1582048666

the property isn't (currently) in a city, so at most it would be a "double freeport", as I understand the terminology.

[undergroundman]

Originally Posted by Novacek

The document has a section asking
"Is the land on which you propose new construction or new improvements currently located in an area designated as a reinvestment zone under Tax Code Chapter 311 or 312 or as an enterprise zone under Government Code Chapter 2303?"

And it has "No" checked.


Just googling, so I don't know the provenance of the map, but it looks to be just outside the federal opportunity zone

https://opportunitydb.com/tools/map/

Yeah, the Federal Opportunity Zone would be of minimal benefit to them. I confused the Opportunity zone with the Triple Freeport zone, which may be of more benefit to them if they ship out the merchandise from their warehouse within a certain amount of days. The Triple Freeport zone map is the one that I can't seem to be able to find.

[Novacek]

Originally Posted by undergroundman

Yeah, the Federal Opportunity Zone would be of minimal benefit to them. I confused the Opportunity zone with the Triple Freeport zone, which may be of more benefit to them if they ship out the merchandise from their warehouse within a certain amount of days. The Triple Freeport zone map is the one that I can't seem to be able to find.

Double/triple freeport apparently isn't anything too special. All 5 counties provide the exemption, and most of the ISDs. I wouldn't think it would drive any location decisions.

[undergroundman]

Originally Posted by Novacek

Found a freeport map

https://www.austinchamber.com/econom...nts-exemptions
https://cdn1.austinchamber.com/archi...048.1582048666

the property isn't (currently) in a city, so at most it would be a "double freeport", as I understand the terminology.

Ahh, there it is. Huh, for some reason I thought freeport zones were more exclusive than this.

[AusTxDevelopment]

Statesman's video of the site.

• Video Link

[JoninATX]

This is great. Tesla will be manufacturing trucks in Austin just like Toyota does in San Antonio.

[undergroundman]

https://electrek.co/2020/06/19/podca...ftware-update/

These guys on the podcast claim they have an inside source and believe the Austin location is a done deal, just needs to go through the process of getting everything officially approved and on paper now. This website is pretty credible when it comes to tech news/rumors. They go on to theorize that HQ will also move to this location based on the enormous size of the land.

They also mentioned that Tulsa has done a great job in courting Tesla. I totally agree. Incidentally, I don't believe there was mention of Tulsa as an option prior to Elon's spat with the Fremont officials and his subsequent declaration to move production out of California. So my theory is that Austin was the location all along for the CyberTruck and Model Y. I also believe Tulsa was only considered internally after the spat to be the primary option to relocate the Fremont factory. And because of convenient timing, they were able to play it publically as Tulsa vs Austin to get more concessions from both. Just my personal theory, nothing more.

[We vs us]

Nice find. No matter how you slice it, if this is true (and it's starting to lean strongly in that direction) it'd be an incredible coup for Austin. Two different manufacturing lines and a possible HQ. I mean. Crazytown.

[JoninATX]

Originally Posted by We vs us

Nice find. No matter how you slice it, if this is true (and it's starting to lean strongly in that direction) it'd be an incredible coup for Austin. Two different manufacturing lines and a possible HQ. I mean. Crazytown.

Exactly! Some people are calling Austin, "Terra Austin".

[freerover]

90% chance is what I was told.

[freerover]

WE NEED your help to make Tesla Happen! Please email edsi2@traviscountytx.gov with your support for the Tesla factory coming to 130 between FM 969 and 71. The Tesla plant's approximately 5,000 working class jobs that help further diversify the Austin economy and help protect against a recession due to slumps in certain industries. Also, the people who work there are going to need places to eat! It'll help attract much needed restaurants and bars to the area. Tesla is considering building the factory on 2,100 acres along the Texas 130 toll road and Harold Green Road, northeast of Austin-Bergstrom International Airport. The property currently is a sand and gravel mining site. You can checkout a drone video of the area here: https://www.youtube.com/watch?v=9wBq9dqB3AU
The workforce would consist of about 65% unskilled labor — and the company is considering workforce relationships with Austin Community College, Workforce Solutions Capital Area and Travis County Justice Planning for workers living in the county or exiting the criminal justice system. "Tesla opening a factory in Southeast Austin will be transformative for Central Texas by adding another layer of diversification and resilience to our economy," Ed Latson, executive director of the Austin Regional Manufacturers Association, said in a statement. "It will create high-paying jobs that provide opportunity to all educational backgrounds, from PhDs to GEDs. And it should be a magnet for an entire ecosystem of businesses and suppliers that support automotive plants and their employees."
The factory would manufacture Tesla’s upcoming Cybertruck electric pickup and also serve as a second site for building its Model Y SUV. The Tesla factory also would create more than 4,000 indirect jobs through related industries, according to an analysis by economist Jon Hockenyos with TXP Inc., which was hired by the county to conduct a study. Hockenyos’ study says that additional jobs and economic activity would result from the ripple effects of Tesla.
The study says Tesla’s factory would generate more than $600 million in annual sales activity, and more than $425 million in new annual wages above and beyond Tesla. In addition, there would be the possibility of relocation, expansions and new firms arising from Tesla seeding an advanced transportation and energy cluster, the study says.\