Authorize the negotiation and execution of a Business Expansion Program economic development agreement with Southwest Airlines Co. for a jobs-based award of $2,750 per job hired in the City of Austin over a five-year term, and approve an ordinance providing an exemption of the requirements Ordinance Nos. 20180830-057 and 20240926-013 to support Southwest Airline Co.’s business expansion at the Austin International Airport. Funding: Funding is contingent upon approval of future Economic Development Department’s Economic Incentive Reserve Fund Budgets and contract performance and compliance evaluations.

Summary

The City Council is considering authorizing the negotiation and execution of an economic development agreement with Southwest Airlines Co. This agreement, under the Business Expansion Program, would provide a jobs-based award of $2,750 per job hired in Austin over a five-year term. The ordinance also seeks an exemption from specific Business Expansion Program guidelines (Ordinance Nos. 20180830-057 and 20240926-013) to facilitate Southwest's expansion at the Austin International Airport. Funding for the incentive payments is contingent upon future budget appropriations and contract performance.

Citizen Impact

This agreement aims to create approximately 2,000 new jobs in Austin, potentially boosting the local economy and providing new employment opportunities for residents, while also supporting the expansion of air travel services.

Confidence

high