HUTTO, Texas (KXAN) — The Hutto Independent School District Board of Trustees accepted an application from Applied Materials for a Chapter 313 Agreement, a type of tax incentive offered by the state and local communities for businesses expanding in or relocating to Texas, as first reported by our partners at the Austin Business Journal.
Applied Materials is a global company that focuses on semiconductor research and development to improve chip-making technology.
According to Hutto ISD, this is the start of a process that could possibly bring:
- $2.4 billion investment to Hutto
- State-of-the-art research and development laboratories
- Research and innovation in advanced semiconductor processing
- 7,190 construction phase jobs
With Samsung right next door in Taylor, longtime resident and realtor Brooke Daniel is already feeling the impact of the boom.
“Just to give you an idea of the housing shortage we have, last year, during the worst part of our housing crisis or the demand there were maybe 10 homes, 15 homes on the market at a time in Hutto. That’s not including new construction,” Daniel explained.
She said right now, there are about 25 to 30 houses on the market and said there are more builders than ever, and the inventory is still low. She said investors have also flooded the market in Hutto and cities within a 30-minute radius of the Taylor and Hutto area.
“The December stats show that through the year of 2021, the median housing price went up about 49% in Hutto,” Daniel explained. “That means most houses increased in value about 50%, which is huge. Right now we are expecting a 20 to 30% increase this year.”
With the possibility of Applied Materials coming to Hutto, those prices, traffic and the growth are expected to boom.
So what happens now that the district has accepted an application from Applied Materials?
Hutto ISD said the state comptroller reviews the application in addition to district attorneys. After that, a proposed agreement could be presented to the board within 150 days after the comptroller determines the application is complete. The comptroller is expected to ensure state and community benefits outweigh the benefits of Applied Materials.
Eventually, if everything is approved, construction would start in 2023, and the company would have to make its first $80 million investment by the end of 2024, according to a presentation from attorney Sara Hardner Leon of Sara Leon & Associates, PLLC. The presentation she made to the school board outlines the following project timeline:
- Qualifying time period 2023-2024
- Construction phase 2023-2026
- Limitation period 2027-2036
- Maintain viable presence 2037-2041
The district said the business would pay the full amount of property taxes for the Interest and Sinking (I&S – debt service) portion of the school district’s tax rate.
“On behalf of the Board of Trustees, we welcome the opportunity to engage with Applied Materials and the possibilities of their significant investment in our community and our schools,” said Hutto ISD Superintendent Celina Estrada Thomas. “Beyond the investment, we look forward to the fruitful partnerships that can arise from their presence. The availability of quality jobs, careers and educational partnerships provide promising futures for every sector of the Hutto labor force. We are excited and energized by this announcement. We welcome a new generation of Applied Materials hippos!”