Texas Spends $6M For Charles Schwab Expansion

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DALLAS -- Texas will provide nearly $6 million in subsidies for Charles Schwab Corp. to add a new center in El Paso and expand its Austin operation, Gov. Rick Perry announced July 24.

The projects, with subsidies from the Texas Enterprise Fund, will create more than 1,200 jobs and more than $230 million in capital investment in the state, Perry said.

"These TEF investments in Schwab are the latest in a long line of expansions in El Paso and Austin that will create hundreds of jobs and opportunity for Texans," Perry said.

El Paso will represent the newest major employment center for Schwab, joining the corporate headquarters in San Francisco and major operations in Denver, Phoenix, Indianapolis, Richfield, Chicago, Orlando and Austin, the company said.

"We are very pleased to be expanding our footprint in Texas," said Joseph Martinetto, executive vice president and chief financial officer at Schwab.

The Texas Enterprise Fund is providing $1.45 million for the El Paso project, which will create 445 jobs and $21.5 million in capital investment over the next decade, according to Perry.

Along with a local incentive package yet to be completed, the $4.5 million TEF investment in the Austin project will create 823 jobs and $210 million in capital investment over 10 years, state officials said.

The Texas Legislature created the TEF in 2003 and reauthorized funding in 2005, 2007, 2009, 2011 and 2013 to promote Texas businesses and add jobs statewide.

TEF projects require approval by the governor, lieutenant governor and speaker of the House. TEF has invested nearly $560 million and closed the deal on projects generating 75,000 jobs and nearly $24 billion in capital investment in the state, according to state officials.

Officials in El Paso praised the company's decision and Perry's role in landing the deal.

"Today's announcement of 445 jobs is proof that El Paso is open for business and our community is ready to be a part of the Charles Schwab family," El Paso Mayor Oscar Leeser said in a prepared statement.

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