Hanger Orthopedic Group announces move to northwest Austin, city proposes incentive package

Hanger Orthopedic Group announces move to northwest Austin, city proposes incentive package

By Beth Wade Wednesday, 13 January 2010

AUSTIN — Updated Jan. 20: The specially called city council meeting Jan. 21 has been moved back to the original time of 10 a.m. instead of 9 a.m. The council will meet to hear a presentation on a proposed incentives package for Hangar Orthopedic Group, which announced Jan. 12 it would relocate its headquarters to northwest Austin. For more information, visit www.ci.austin.tx.us.

Bethesda, Md.-based orthotic and prosthetic patient care services provider, Hanger Orthopedic Group, announced Jan. 12 it would relocate its corporate headquarters to northwest Austin. The company is expected to move to Phase II of The Domain by the third quarter of 2010.

According to a press release from the company the new headquarters will provide space for future growth, improved operational efficiency, and an enhanced quality of life for corporate employees. The company completed a nationwide search before making the decision to move to Austin.

"As the market leader of the orthotic and prosthetic profession in the United States, we promote creativity and innovation in our business operations. Our new location embodies this spirit and will serve as an ideal environment for us to continue our growth and disciplined diversification strategy," Hanger Orthopedic Group President and CEO Tom Kirk said in the statement. "Additionally, we are impressed with the professionalism and the support afforded to us by the state of Texas and the City of Austin in facilitating our decision-making process. Their outstanding assistance packages were a key element of this support. We would also like to recognize the helpful role played by the Austin Chamber of Commerce."

The City of Austin proposed a $500,000 incentive package for Hanger, city officials said. To get the incentive, Hanger would have to meet benchmarks set by the city each year. The company would then be paid $10,000 for each year the obligations have been met. In year one, the company must relocate to Austin, invest $7.65 million and create 133 jobs in Austin. By year six, the company must have created a minimum of 250 jobs and work with local minority chambers and comply with the standards and principals of the Minority/Women Business Enterprise Ordinance. The state of Texas will also provide $1.5 million from the Texas Enterprise Fund.

The Economic Development Growth and Redevelopment Services Office will have a public comment period regarding an economic development proposal between the City of Austin and Hanger Orthopedic Group. The public comment period began Jan. 12 and will continue until 5 p.m. Jan 24.

At a specially called council meeting Jan. 21 at 10 a.m. in council chambers at 301 W. Second St., city staff will present a briefing on the proposal. A public hearing will be held in council chambers Jan. 28 at 10:30 a.m.

Hanger said of its more than 130 Bethesda employees, eligible staff members would be offered the chance to relocate to Austin, and severance packages would be available for those who choose not to relocate.

For more information on the company, visit www.hanger.com. Visit www.ci.austin.tx.us for more information on the proposed incentive.