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Council members approved a measure directing the city manager to develop a plan to help a new large-scale hotel get off the ground and calculate the economic impact of such a building. The measure is in response to a well-publicized call from the mayor and Austin tourism officials to increase hotel capacity downtown to lure more conventions to the city. Conventions are a coveted source of tax revenue for cities because visitors pump a lot of money into the local economy but do not take a toll on city services.

Council also passed a motion Thursday instructing the city manager to prepare a proposed $100 million transportation bond package, aiming for the November election. The entire 2010 bond discussion started as a campaign promise from Mayor Lee Leffingwell, who sought bond funding for transportation projects, including a downtown rail line.

But Leffingwell made a surprise announcement recently that he was backing off his stance for a $400 million 2010 bond election, amid concerns that more preliminary engineering needs to take place for the rail portion.

Instead, the mayor wants a $100 million election this year to fund roads, sidewalks, bike lanes and trails.

Another election in 2011 may seek voter approval for rail, plus another $100 million to fund smaller projects, the mayor's staff said.

That election will likely require a property tax hike to increase bonding capacity, but turnout could be small because high-ticket elections - such as the governor's race - happen this year, not in 2011.

Austin Has Most Expensive Rent in Texas

Austin Business Journal

March 25, 2010

Austin is the most expensive city in Texas for paying rent and buying a home, according to a study released this week by Washington D.C.-based Center for Housing Policy. Austin ranks as the 65th most expensive U.S. rental market and the 73rd most expensive homeownership market of all metro areas studied. The center studied data provided by the National Association of Home Builders, the National Association of Realtors and the U.S. Department of Housing and Urban Development. Austin's median home price is $176,000, unchanged from 2008, the study found. However, Austin's ranking rose to No. 73 for 2009 compared with No. 84 in 2008.

The typical rent for a two-bedroom home rose in 89 percent of the markets studied, with Austin's price hitting $954 in 2009 from $912 in 2008, although Austin did fall in rankings down to 65 from 59. Once again, San Francisco was the most expensive city at $1,760. Despite some perceptions it's a renter's market in the U.S., the study found that in the vast majority of metropolitan's fair market rents have held steady or increased, even occasionally surpassing monthly mortgage payments for a median-priced home.

The study also found that some occupations are more prone to being priced out of renting. Specifically, retail salespeople continue to be priced out of renting a two-bedroom apartment in every market studied. Janitors fare almost the same, being able to afford a two-bedroom apartment in only one of the 210 rental markets studied. Licensed practical nurses are unable to rent a two-bedroom apartment in 55, police officers in 12, and elementary school teachers in 11, of the markets studied.

"We must develop the common sense, cost-effective policy solutions at the state and local levels that will help ensure long-term affordability," said Center for Housing Policy Chair John K. McIlwain, senior resident fellow and the J. Ronald Terwilliger chair for housing at the Urban Land Institute.

"Otherwise, our workforce will face longer commutes and higher transportation costs, leading to increased traffic congestion and adverse environmental impacts."

Austin Best Market for Young Adults

ABJ, G. Scott Thomas

March 15, 2010

The Southwest has become the new frontier for young Americans - the region where men and women in their 20s and 30s have the best chance of establishing themselves in a recessionary economy. Five Southwestern metropolitan areas, led by No. 1 Austin, rank among the nation's eight best places for young adults, according to a new Portfolio.com/bizjournals study.

Two qualities help Austin stand out:

· Two-thirds of the nation's major markets have fewer jobs now than five years ago, but Austin added 99,200 jobs during that span. Its annual employment-growth rate of 2.8 percent is the fastest in America.

· Austin has the strongest concentration of young people among the 67 metros. Twenty-eight percent of its residents are between the ages of 18 and 34. The median for the study group is 23.1 percent.

Washington, Raleigh and Boston are the three runners-up in the study's rankings of the best places for young adults. They're followed by four Southwestern metros - Houston, Oklahoma City, Dallas-Fort Worth and Tulsa - that occupy fifth through eighth places.

Facebook Moving In, seeking Friends With Operation Skills

By Kirk Ladendorf, AMERICAN-STATESMAN STAFF
March 13, 2010

Facebook Inc. is moving fast in Austin. The leader in online social networking formally confirmed its arrival in Austin on Friday and said it hopes to lease office space, hire a staff and start work on its online sales and operations center by early May. The fast-growing company, which has more than 400 million members worldwide, had a dozen job openings posted on its Web site by early afternoon. Openings include jobs for an account management analyst for online sales, agency account manager, user operations analyst, fraud analyst, fraud investigator, inside sales account executive, inside sales manager and manger of user operations. Facebook has told the city that it will create at least 200 jobs in Austin with an average pay of more than $54,000 a year. At a welcoming party Friday at City Hall, both city politicians and company officials called Facebook a good fit for Austin and vice versa. "We move very quickly. We looked at a number of cities and we are excited to have landed in Austin," said Sarah Smith, the company's head of online operations, who will move to Austin.

"The deep talent pool is very attractive for us. It has a strong history of innovation, a healthy business environment and a thriving economy."

On Thursday, the City Council approved $200,000 in cash incentives for the company spread over 10 years. The state committed to give the company a $1.4 million grant from the Texas Enterprise Fund.

http://www.statesman.com/business/facebook-moving-in-seeking-friends-with-operations-skills-347931.html

Austin Best Economic Recovery in U.S.

Austin Business Journal

March 8, 2010

The Austin-Round Rock area tied for first on a list of large metros where the recession is easing. Central Texas tied Washington D.C. in the Forbes.com ranking that compiles job growth and real estate industry improvement, among other indicators. Washington has one of the lowest unemployment rates in the nation, 6.2 percent, and the city produced more goods and services than another other in 2008.

Austin has also maintained relatively lower jobless rates, though the number increased to 7.6 percent last month from 7 percent, according to the Texas Workforce Commission Statewide, the rate was unchanged at 8.2 percent from December to January, compared to 9.7 percent nationally. Austin and Washington D.C. also benefit from their high government job generation, according to Forbes. The number of Central Texas jobs increased just shy of 1 percent between 2007 and 2009, more than any other city included in the research. Dallas came in second on the ranking behind Austin. The number of jobs there are expected to increase more than 7 percent in the next three years. San Antonio and Houston also made the top 10 list.

Job growth projections were based on information from Moody's. The listing also considered median home sale price changes and Metropolitan Gross Domestic Product.

http://austin.bizjournals.com/austin/stories/2010/03/08/daily2.html?ed=2010-03-08&ana=e_du_pub

Austin Professionals Work Hard, Rock Harder

March 4, 2010

Austin Business Journal - by Sandra Zaragoza Staff Writer

On April 20, Antone's will be taken over by suits who are hard working by day and hard rocking by night. These on-the-side musicians will be rocking out in support of The Health Alliance for Austin Musicians Fundraiser Corporate Battle of the Bands. Eleven bands will be battling for awards and prizes during the showdown at Antone's.

The grand prize winner will receive a day of recording time at Bismeaux Studios and passes to the Austin City Limits Music Festival. Other prizes include a gig at Stubb's Bar-B-Q and a $500 Strait Music gift certificate.

Last week, HAAM made its annual call for entries for the third annual music competition and fundraiser at Cirrus Logic's campus. The entry fee is $25 per band, and the deadline for entries is March 22. A committee of musicians and business people are tasked with selecting four bands that will play the April 20 concert/competition.

This year, HAAM gave companies an opportunity to secure a spot ahead of time for a $1,500 donation. Other bands that are selected will be asked to make a donation of $1,000. At least three of the business band members must work for the same company.

"We really want to encourage morale building and team building," HAAM Executive Director Carolyn Schwarz said. "It's just a fun thing for co-workers to support."

http://austin.bizjournals.com/austin/stories/2010/03/01/daily40.html?ed=2010-03-04&ana=e_du_pub