Technology company Apple Inc. has finalized a contract with Dallas-based Cadence McShane Construction Co. to construct the first phase of the planned Americas Operations Center in Northwest Austin, and construction is expected to start in September, said Srinath Kasturi, vice president at Cadence McShane, which has offices in Austin, Dallas and Houston.
Apple, headquartered in Cupertino, Calif., purchased nearly 39 acres of land at Parmer Lane and Delcour Drive in June with plans to invest $304 million into the operations center and hire more than 3,600 employees by Dec. 31, 2021.
The City of Austin approved an $8.6 million economic incentive agreement for Apple’s investment in Austin, and Apple could receive between $5.4 million and $6.4 million in incentives from Travis County depending on whether the company fulfills certain agreed-upon requirements.
Apple is also slated to receive $21 million from the state’s Texas Enterprise Fund. That amount is the seventh-highest awarded to a company since the fund’s inception in 2003, according to the Economic Development and Tourism Division of the Governor’s Office.
Texas Instruments received $50 million—one of the largest amounts—between 2004 and 2007 for its $3 billion investment.
Apple’s new facility will be part of the Riata Vista Office Complex, which is being developed by McShane Development Co., a sister company of Cadence McShane. City staff approved initial site plans for the project in 2007, and on May 24, Austin City Council approved extension of the site to Dec. 31, 2021, to allow enough time for the project to be completed.
According to site plans filed in April with the City of Austin, the complex will include five office buildings with a total of 649,028 square feet of space, two retail buildings with a total of 34,794 square feet and one 5,250-square-foot restaurant.
Although Apple has not yet confirmed that it will be building a new campus, the documents said, “... the primary tenant to utilize these future professional office buildings is Apple Inc.”
Lynda Courtney, development services process coordinator for the city, said the documents do not indicate how much of the office buildings Apple will occupy. She said the revised site plans have increased the buildings by one floor to a total of four floors and added parking to meet Apple’s needs.
Courtney said Phase 1 would include construction of the parking lot, a detention pond and the drainage system. Phase 1A and 1B would be Apple’s two office buildings. The second phase would include construction of the remaining office, retail and restaurant buildings on the west side of the property.
Cadence McShane will hire subcontractors to construct Phase 1. Kasturi declined to provide more details about the project because of a confidentiality agreement.