A fast-growing for-profit education company is set to bring more than 100 new jobs to Cedar Park with the relocation of its headquarters beginning in 2019.
Vandelay Education, which provides hands-on medical training through more than 50 training programs nationwide, plans to develop its new headquarters on a 1.3 acre tract of land across the street from Cedar Park Regional Medical Center. The first phase of construction includes 5,500 square feet of office space and is scheduled to be completed in 2019.
An additional 14,500 square feet of space would be completed before October 2021, according to the terms of a financial incentive deal with the City of Cedar Park.
“It seemed like a really good fit geographically, and Cedar Park made that even a little bit easier on us,” said Vandelay CFO Kasey Van Daley. “We’re creating more space for us to grow.”
The deal will create both direct and indirect job opportunities in the community, said Phil Brewer, the city's economic development director.
"It will bring people in the region who can come to Cedar Park and work, it creates a daytime population of people eating lunch or doing business, whether its cleaning their car or buying a birthday present,” he said.
Vandelay is owned and operated by Fifteen Five Corporation, or 15Five, which was recently named the 15th fastest growing company in Central Texas by the Austin Business Journal. 15Five also has business interests in real estate, management and business services.
At its Dec. 7 regular meeting, the Cedar Park City Council approved a performance-based economic development agreement with 15Five providing for up to $140,170 in sales tax rebates, payable in five installments over five years. The terms of the deal require 15Five to add nearly $6 million in annual payroll to the local economy in the form of 107 new jobs at an average annual salary of $55,000 each.
Brewer said the city expects a 24.6 percent rate of return and a projected payback period of less than four years. Brewer said the city expects to see $345,475 in net tax benefits and $947,915 in total benefits for all taxing jurisdictions.
“The expenditure will facilitate additional job creation and capital investment and generate new sales tax and property tax revenues within the City of Cedar Park,” Brewer said, adding that if the company misses the mark in any part of the agreement, the city is allowed to “clawback” and retain all the money given in the agreement.
“A company has to perform before any dollars are released,” Brewer explained.
Brewer said Cedar Park has made close to 40 similar economic incentive agreements, including local employers Voltabox, Revenue Cycle and BMC.