City Council Approves Athenahealth Incentives Deal - But Not Unanimously
KUT 90.5 | By Phoebe Flanigan
Filipa Rodrigues for KUT News
Massachusetts-based athenahealth will open its offices inside the former Seaholm Power Plant
Last night the Austin City Council approved a deal that offers nearly $680,000 dollars in incentives for athenahealth to expand in Austin. The grant will be offered in addition to a $5 million subsidy from Gov. Rick Perry's Texas Enterprise Fund.
But not everyone is happy with the deal. Some council members argue that the city's booming economy doesn't need to offer subsidies to bring business to Austin. (The deal passed on a 5-2 vote, with city council members Laura Morrison and Kathie Tovo voting no.)
Austin Monitor publisher Michael Kanin says that this debate is heating up as council members become increasingly divided on the issue of business incentives.
"There are definitely some council members that are up there right now that are pretty frustrated with incentives in general and it has nothing to do with the company that's coming – in this case athenahealth" Kanin says.
"We're number one on a lot of lists for a reason, and that's because we do the right things. And I think that the chamber folks would argue that the right thing is the incentives."
The Massachusetts-based athenahealth promises to invest over $7 million in the Austin economy, and bring 607 new jobs to the city by the end of 2023. Read more about the agreement here.
Coming as the Austin City Council transitions to single-member districts, these objections could become part of a bigger debate.
AustinEconomic IncentivesAustin City CouncilEconomyTexas Enterprise FundBusiness
Phoebe Flanigan
Intern for KUT News
See stories by Phoebe Flanigan
Will Occupancy Limits Aimed at 'Stealth Dorms' Hurt Austin Affordability?
Mark Gwin
A fight pitting affordable housing against neighborhood quality is headed to the Austin City Council.Austin's Planning Commission is recommending a…
Should Austin Offer Economic Incentives? Athenahealth Deal Stirs Debate
Kelly Krupa
Austin's facing a familiar question: whether to approve economic incentives luring new jobs to town.Today, the Austin City Council was briefed on a…
City Council OKs 'Visitability' Rules; All New Homes Must Be Wheelchair Accessible
The Austin City Council approved changes to city building code today, aiming to make new homes more accessible to everyone.The changes aim to improve…