Round Rock and Dell Technologies extend original agreement through 2099
In a move to extend a partnership that has spanned over thirty years and transformed Round Rock into a hub of economic and technological development, City Council unanimously approved a significant extension to the Economic Development Program Agreement with Dell Technologies at its regularly scheduled April 25 meeting.
The action extended the termination date of the agreement from Dec. 31, 2053, to Dec. 31, 2099, effectively lengthening Dell’s commitment to Round Rock and the corresponding economic benefits for an additional 46 years.
“Dell Technologies’ impact on our community has been profound and transformative, and Round Rock’s modern evolution is directly linked with Dell’s growth,” said Mayor Craig Morgan. “This agreement put our strong business environment on the map and provides us the economic benefit to deliver high-value services to residents and attract other major companies and development projects.”
Dell and City of Round Rock entered into the state’s first Chapter 380 economic development program agreement on Aug. 26, 1993, causing Dell to move its world headquarters to Round Rock in 1994. The 1993 agreement facilitated substantial job creation, community investments and infrastructure developments. The expansion of the City’s tax base has resulted in a series of public works projects and additional public amenities such as the expansion of the water plant, an additional wastewater treatment plant, major road construction projects and the development of the 570-acre Old Settlers Park. As a result of the City’s ability to use sales tax revenues to reduce property taxes, Dell’s strong sales have directly reduced property taxes in Round Rock for decades.
The partnership was structured to incentivize Dell’s contribution to the local economy through job creation and business stimulation while providing the company with financial benefits and operational support.
Since the inception of the agreement, the City of Round Rock has retained more than $429 million in sales tax revenues from Dell sales for the funding of City services, programs and capital projects. The sales tax portion of the agreement is so impactful on City operations that Round Rock has implemented a policy that Dell’s net sales tax receipts that exceed 15% of budgeted General Fund revenues must be deposited in the General Self-Financed Construction Fund for one-time capital expenditures, to avoid over-reliance on a single taxpayer. The State of Texas has also collected more than $2 billion in sales tax revenues generated by Dell’s sales.
Dell continues to maintain its corporate campus and headquarters in Round Rock, making it a top property taxpayer in the City.
As the company approaches its 40-year anniversary of business and nearly three decades in Round Rock, Dell’s latest commitment promises a thriving future for the partnership as Central Texas continues to drive growth and innovation.
“Dell Technologies is pleased to continue our strong relationship with the City of Round Rock,” said Mark Pringle, Senior Vice President of Dell Technologies. “Over the last 30 years, we have grown together into a thriving community and a global company. We look forward to continuing to work with the City and its wonderful team.”
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Source: City of Round Rock