City Council approves pair of economic incentive deals
The City Council approved two economic incentive agreements for companies expanding in Round Rock that will result in nearly $13 million in new investment and 100 jobs created.
The first is an economic development agreement between the Round Rock Transportation and Economic Development Corporation and Sovos Brands, which owns Michael Angelo’s Gourmet Foods.
Michael Angelo’s, an existing specialty food manufacturer in the city, is enhancing its current facility and equipment by adding and expanding cold storage and modern manufacturing lines. The agreement requires Sovos Brands to spend at least $11 million over a three-year period in the rehabilitation of its facility, new equipment and business personal property. In addition, it must add 18 additional full-time skilled employees to its current workforce of 300 employees over the next three years.
In consideration for Sovos meeting its obligations, economic incentive payments (EIPs) of $140,000 will be issued in 2020, and $75,000 in 2021 and 2022.
The agreement will terminate on the date the final EIP is made in 2022 and includes clawback provisions should Sovos not fulfill its obligations.
The second agreement is with BGE, a nationwide consulting firm that provides civil engineering and other services in planning and landscape architecture; environmental; surveying; transportation; land and site development; public works; and construction management for public and private clients. BGE’s investment will enable the company to better serve its staff and clients from its Austin-area locations.
The agreement requires BGE to expend at least $1.9 million in improvements to its facility at 101 West Louis Henna Blvd. In addition, it must employ at least 80 full time employees with an average salary of $80,000 per year with benefits. In consideration for BGE meeting their obligations of the agreement, the City will issue an EIP of $50,000 in 2020, and $25,000 in 2012 and 2022.
The agreement will terminate on Dec. 31, 2026, and includes clawback provisions should BGE not fulfill its obligations.
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Source: City of Round Rock