AUSTIN (KXAN) — Citing strict requirements on building and hiring in Austin, National Instruments has decided to scrap its plans to expand business in its hometown.
Last year, the City of Austin, along with the county and state, offered NI incentives to continue growing their business locally. Austin’s agreement provided a performance-based economic grant equal to 50 percent of the property taxes generated by the project over a 10 year period, equivalent to an estimated $1.7 million
The proposed project would have resulted in the hiring of 1,000 engineering and technology jobs with an average annual wage of approximately $72,000.
Austin was in competition with Penang, Malaysia for the the project.
NI was also expected to commit to paying the higher of prevailing wages or $11 per hour to all construction workers and full time employees.
The planned 300,000 square-foot facility was never started, according to a NI spokeperson.
In a statement, NI said they are optimistic about the remainder of 2014 and remain committed to their long-term growth.
“Considering the company’s goals to continue leveraging our current investments, drive sustained revenue growth, and improve our operating margins, we have elected not to proceed with the development agreements with the City of Austin, Travis County and the State of Texas which would have set building and hiring requirements in Austin,” the company said in a statement to KXAN News.
The company designs and manufactures electronic measurement hardware and software.