Samsung representatives shook hands with city leaders Thursday on their offering of the largest incentive package in Austin's history.
The city of Austin wants to give Samsung $58 million in tax rebates for building a new facility here.
"When you think about what the city is giving and the economic impact what the city is getting, it is clearly a win-win, positive impact," Assistant City Manager Laura Huffman said.
But it's not a done deal yet.
Samsung representatives were coy about whether the incentive package was convincing enough.
"This is one step in a many-step process. Right now Samsung hasn't made a decision to build a plant here or anywhere else," Samsung Executive Counsel for Public Affairs Bill Cryer said.
The city's offer is part of a joint effort. The Manor Independent School District is also chipping in a $140 million property tax break and Travis County is expected to offer county incentives.
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Samsung incentives
The city has approved its highest bond package in history.
 
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The total package adds up to more than $200 million.
If you divide that by the 700 new jobs Samsung would bring, it breaks down to more than $200,000 municipal investment per job.
City leaders say a new facility would bring in billions of dollars more in indirect investment and add close to $507 million in general city revenue.
"Small and large businesses all over this community who rely on Samsung and serve Samsung will benefit economically," Huffman said.
But not everyone thinks it's such a great idea.
Some economists say offering huge economic incentives can lead to a risky bargaining game.
"The only question is, what's going to be the next tax break?" McCombs School of Business lecturer Michael Brandl said.
Incentive packages this large open the door for other companies to demand the same or more, Brandl said.
"What we can anticipate in the future is that there are going to be larger and larger tax abatements," Brandl said.
Other incentive critics point to an infamous downtown eyesore. The city gave Intel incentives to move here, but the company didn't make good on the deal and abandoned the project.
City leaders say the Samsung package is completely different.
"This incentive package is performance-based. If it accepts this offer it has to do certain things to get it," Kirk Watson of the Greater Austin Chamber of Commerce said.
City leaders say Samsung won't see a penny until it builds its $3.5 billion facility and creates 700 new jobs.
Without sweetening the deal, another town could get Samsung's new facility. That, local leaders say, would sour our local tech industry.
According to Samsung representatives the company probably won't make a decision on "if," "when" and "where" to build for another several months.
