The Austin City Council approved the purchase of the 107-acre Tokyo Electron (TEL) campus and surrounding property located at 2400 Grove Blvd in southeast Austin. The parcel of land includes two existing buildings, which will be leased back for one year to Tokyo Electron while the company completes its relocation to South First Street.
The $87 million approved by the council is well above the valuation by the Travis County Appraisal District. According to the city, the cost includes approximately $27 million in Project Connect Anti-Displacement Funds. The acquisition will enable the City of Austin’s Housing Department to develop additional income-restricted units close to transit and other community amenities promoted by Project Connect investments. The remaining $60 million will be funded through bonds backed by property tax revenue.
“This was a rare, generational opportunity to purchase a huge swath of mostly undeveloped land centrally located in Austin,” Assistant City Manager Veronica Briseño said. “In addition to much-needed administrative offices for critical City services, we have the chance to create not just affordable housing, but an entire community with space for commercial and cultural endeavors, all with exceptional access to public transit.”
Tokyo Electron’s North American headquarters have been in Austin for 30 years and will continue to call Austin home.
“Austin has innovative and diverse talent and a thriving technological community,” Rick Turner, Executive Vice President, CFO & GM Administration at Tokyo Electron U.S. Holdings, said. “For 30 years, we have developed semiconductor technology that is shaping the future right here in Austin. We look forward to continuing to drive innovation in this increasingly global city and region not just through our work, but through our commitment and involvement with the community.”
