Austin Loses Incentive Agreement with Dropbox
Dropbox Inc. has canceled its incentive agreement with the city of Austin to create 170 new jobs and invest $5.5 million.
In a letter to the city, the San Fransisco-based company said it “lack[ed] the bandwidth to track our compliance with the agreement,” echoing concerns voiced by some who consider the city’s economic agreement’s reporting requirements too onerous. Dropbox said it remains excited about its future in Austin, and doesn’t appear to be backing away from hiring or investing in the city.
The letter was dated May 22, the same date when Austin-based National Instruments (Nasdaq: NATI) withdrew from its 1,000-job incentives agreement with the city. About half of the city’s 20 total incentive deals have been canceled for various reasons.
The company did not immediately respond to requests for comments for this story.
Dropbox, which is in the process of opening its Austin office on Congress Avenue between Fifth and Sixth streets, already employs 40 local workers. On May 30, after the agreement had already been canceled, Dropbox’ Vice President of of Enterprise Strategy Ross Piper told an audience at the Austin Technology CouncilCEO Summit that Dropbox plans to employ 200 workers in Austin by the end of 2015.