Wednesday,
April 23

 
BUSINESS

Diminished returns: recession hits Perry's pot o' gold


Illustration by Jeremiah TeutschIllustration by Jeremiah TeutschThe Texas Enterprise Fund is the pocket from which Governor Rick Perry has drawn nearly $426 million since 2003 to “close the deal” for companies looking either to expand in the state or move here. He dug deep for Rackspace Hosting in August 2007.

The fund announced a grant of $22 million – by far the biggest of the 2006-7 fiscal year, accounting for 29 percent of all the money it awarded that period – to the homegrown web-hosting company. Like all TEF grants, it had to have the unanimous approval of the Governor, Lieutenant Governor, and the Speaker of the House. It was a huge inducement for Rackspace to stay in the area and refashion the defunct Windsor Park Mall’s 67-acre site into a campus buzzing with purposeful, high-paying activity.

In return, the publicly traded company signed a contract pledging to create 4,000 new jobs over the next five years.


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