Nov. 02--Oracle Corp., one of the giant developers of business software, is proposing to expand its marketing and sales operations in Austin and add 200 jobs here.
The Redwood City, Calif., company is proposing to invest $5.4 million in the expansion project, which would be located at 7700 W. Parmer Lane.
Gov. Rick Perry said Friday that the state will provide $1 million from the Texas Enterprise Fund to close the deal. The governor's offer is contingent on the approval of local incentives by Williamson County. The company also is considering another site outside of Texas.
Dave Porter, senior vice president of economic development for the Greater Austin Chamber of Commerce, said the Williamson County Commissioners Court is expected to consider the project next week.
"This is not going to be a city of Austin incentive," Porter said. "It is contingent on Williamson County."
Porter said Oracle explored the potential incentives from the city of Austin before shifting its attention to Williamson County. He did not comment on why the company made that shift.
Oracle officials could not be reached late Friday. Williamson County officials also could not be reached for comment on Friday.
As in most economic development projects, the local incentive offer is expected to be considerably smaller than the state incentive.
Perry said the Oracle project "will help bring hundreds of jobs and opportunity to Texas families and stimulate the local and state economy."
Oracle already has marketing operations and other business operations in Austin, and the new project would add to those.
"We are expanding our presence in Texas because we've been impressed with the quality work force and growth opportunities here," Randy Smith, Oracle's vice president of real estate and facilities, said in a written statement. "With this new investment we will be better equipped to meet customer demand while bringing new technology jobs to the state."
Porter said the Oracle project is another example of a major California tech company looking to expand in Central Texas because of its talent base.
"We have the talent and they have been successful here," Porter said.
Rodney Gonzales, deputy director of the City of Austin'sEconomic Development Department, confirmed Porter's disclosure that Oracle had applied with the city for incentives before shifting its focus to Williamson County. The company did not explain to the city why it decided to ask for incentives from the county and not the city.
"Sometimes we do deals with the county and sometimes not," Gonzales said. "I don't think this is unusual."
With more than $37 billion in sales last year, Oracle is the second-largest software company in the world and a leading provider of database software for large companies.
The company bought server company Sun Microsystems in 2010 so that it can now sell both hardware and software to customers.
In the past year, Oracle also has moved to expand its sales collaboration with Round Rock-based Dell Inc., which is the world's second-largest provider of Intel-based servers.
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