Friday, November 08, 2019

City to Lower Bar for CalTech Employment Incentives

City Council will entertain reducing the number of new jobs CalTech must provide for economic development assistance.  The original agreement was approved in August 2016.   Staff wrote:

CalTech Software Systems Inc., located at 940 Arroyo Street, San Angelo, is a business enterprise engaged in computer systems design, consulting, and support services. The company has determined that over the next several years they will be hiring between 15 and 100 new employees at a starting salary of at least $30,000 per year plus benefits and performance bonuses and also will be investing a minimum of $100,000 in capital investment. CalTech is headquartered in San Angelo and currently employs 38 full time employees, 2 part time employees and 1 Intern.
The Development Corporation board discussed CalTech changes during their October meeting.

"From what they told me they have been creating jobs but its actually other locations than San Angelo.  So, the job creation is there, it's just not here in town."--Staffer Shannon Scott at 10-23-19 COSADC Board meeting.
Isn't that the purpose of economic development agreements, to incentivize companies to create jobs in San Angelo?   Where is CalTech hiring that they need to lower their San Angelo promise from 15 to 10?   Their website shows all over Texas:

Not one person asked why CalTech was hiring elsewhere, even with a $600,000 incentive to place jobs here. That question deserves an answer.

Update 11-12-19:  Councilwoman Billie DeWitt asked why CalTech jobs were being created elsewhere and not in San Angelo.  City staff did not know the answer.

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