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About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (Dec. 14, 2018)
NATION East Oregonian A6 Friday, December 14, 2018 Apple to build new Austin hub, expand in other tech hotbeds By MICHAEL LIEDTKE, MATT O’BRIEN AND WILL WEISSERT Associated Press AUSTIN, Texas — Apple plans to build a $1 billion campus in Aus- tin, Texas, that will cre- ate at least 5,000 jobs ranging from engineers to call-center agents while adding more luster to a Southwestern city that has already become a bustling tech hub. The decision, announced Thursday, comes 11 months after Apple CEO Tim Cook disclosed plans to open a major office outside California on the heels of a massive tax cut on overseas profits, which prompted the company to bring about $250 billion back to the U.S. The company said it will also open offices in Seattle, San Diego and Culver City, California, each employing at least 1,000 workers over the next three years. Apple also pledged to add hun- dreds of jobs each in New York; Pittsburgh; Boston; Boulder, Colorado; and Portland, Oregon. “They are just pick- ing America’s most estab- lished superstar cities and tech hubs,” said Richard Florida, an urban develop- ment expert at the Univer- sity of Toronto. Apple’s scattershot expansion reflects the increasing competition for engineers in Silicon Val- ley, which has long been the world’s high-tech cap- ital. The bidding for pro- grammers is driving sala- ries higher, which in turn is catapulting the average prices of homes in many parts of the San Fran- cisco Bay Area above $1 million. Many high-tech workers are thus choos- ing to live elsewhere, caus- ing major tech employ- ers such as Apple, Amazon and Google to look in new places for the employees they need to pursue their future ambitions. “Talent, creativity and tomorrow’s breakthrough ideas aren’t limited by region or ZIP code,” Cook said in a statement. Cities around the coun- try offered financial incen- tives in an attempt to land Apple’s new campus, but Cook avoided a high-pro- file competition that pitted Ricardo Brazziell/Austin American-Statesman via AP Apple employees attend an event about Apple’s new campus announcement in Austin, Texas, on Thursday. them against one another, as Amazon had before deciding to build huge new offices in New York and Virginia. Amazon could receive up to $2.8 billion in incen- tives in New York, depend- ing on how many it ulti- mately hires there, and up to $750 million in Vir- ginia. Apple will receive up to $25 million from a jobs-creation fund in Texas in addition to prop- erty-tax rebates, which still need approval. The figure is expected to be a small fraction of what Amazon received. The government incen- tives offered to Apple seem “more in the line of normal business site selection” compared with Amazon’s public “shakedown,” said Mark Muro, a senior fel- low at the Brookings Insti- tution’s Metropolitan Pol- icy Center. “There’s a growing backlash in the country against the entire process of subsides and relocation inducements,” Muro said. “That said, the Apple num- bers for a very significant increase in jobs are much less eye-popping than the Amazon numbers.” The spots where Ama- zon and Apple decided to expand were obvious choices, based on an anal- ysis released earlier this year by CBRE Research. Washington, D.C., ranked as the third best place in North America for tech tal- ent, behind Silicon Val- ley and Seattle. New York ranked fifth and Austin sixth. No. 4 was outside the U.S.: Toronto. The new Austin cam- pus, with about 3 mil- lion square feet of office space, will be about a mile from another large office that Apple opened five years ago. Apple cur- rently employs about 6,200 workers in Austin, making it the company’s largest hub outside Silicon Valley even before the expansion. The new jobs are expected to mirror the same mix Apple already has at its Cupertino, California, headquarters, ranging from jobs in technology and research that pay well over $100,000 to lower-paying positions in customer call centers. Austin Chamber of Commerce Board Chair- man Phil Wilson described jobs that Apple will be adding as “mid-skill” and “good-paying.” Virtually all of the jobs in Seattle and San Diego will be in technology — a field where six-figure pay- checks plus stock options are standard. The jobs in Culver City, about eight miles from Hollywood, will also be in digital music and video, two areas Apple is expanding in to boost its subscription entertainment offerings. While much of the $250 billion overseas profits has been earmarked for buying back company stock and paying higher shareholder dividends, Apple pledged in January to finance more than $30 billion in capital expenditures in the U.S. over the next five years. It also committed to creat- ing more than 20,000 more U.S. jobs during that same time frame. After adding 6,000 jobs, Apple said it now has 90,000 U.S. work- ers and is on track to ful- fill its expansion pledge on schedule. Where U.S. compa- nies open new facilities or plants has had the poten- tial for public and political backlash. Pelosi says House Dems will start seeking Trump tax returns By ALAN FRAM Associated Press WASHINGTON — Democrats controlling the House next year will start trying to obtain President Donald Trump’s income tax returns from the Internal Revenue Service, the likely next speaker said Thursday. But Nancy Pelosi, D-Ca- lif., expected to lead the House when the new Con- gress starts in January, said she believes the White House will fight the request, “so the question is where do we go from there.” Pelosi’s comments reflected Democrats’ strug- gle to balance liberal voters’ antipathy and suspicions of Trump against the likeli- hood of a long legal strug- gle and uncertain political gains. Trump, a wealthy real estate baron, shunned decades of tradition by presidential candidates and refused to release his tax returns during his 2016 cam- paign. He said he was being audited, even though IRS officials have said taxpay- ers under audit are free to release their returns. AP Photo/J. Scott Applewhite House Democratic leader Nancy Pelosi of California finishes a news conference at the Capitol in Washington on Thursday. The law says the chairs of three congressional commit- tees can request tax returns and the Treasury secretary “shall furnish” them for panel members to review privately. Pelosi told report- ers that the House Ways and Means Committee “will take the first steps” toward obtaining the documents. Democrats would love to explore numerous ques- tions about Trump’s per- sonal financial webs. Those include whether there are conflicts of interest between his companies and his pres- idential actions, whether F RIDAY A FTERNOON & E VENING ABC NBC CBS FOX 12 PM 12:30 1 PM (11) KFFX KPTV Divorce Steve! 11 Program Court 3 12 O' News (N) (42) Bold & B. 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