North Austin company plans to bring jobs to Cedar Park
A North Austin medical billing and consulting company is planning to move its headquarters to Cedar Park.
The city of Cedar Park offered about $433,000 in incentives to Revenue Cycle Inc. during a Dec. 15 City Council meeting. The company was established in 2002 and is currently located on West Braker Lane in Austin.
Through an economic development agreement, Cedar Park will pay $433,200 in incentives to Revenue Cycle through five installments from 2017-21. The agreement is performance-based—the company will invest $5 million by purchasing a 30,000-square-foot building under construction at Scottsdale Crossing no later than Nov. 30, 2017, and it must create 114 jobs with an annual payroll of $5.8 million by Dec. 31, 2021, said Economic Development Director Phil Brewer.
In addition to the required 114 positions, Brewer said 37 jobs could be created as a result of Revenue Cycle’s presence in the community.
According to city documents, “… the expenditure will facilitate additional job creation and capital investment and generate new sales tax and property tax revenues within the corporate limits of the city of Cedar Park.”
The incentives will be paid through the Cedar Park Economic Development Corporation, which collects a half-cent sales tax for the uses of economic development. Brewer said the agreement has a payback period of 7.1 years with a 13.3 percent rate of return.
Revenue Cycle CEO Ron DiGiaimo told council members he expects the company to continue to grow.
“Our company has been around a little over 10 years, and in that time we’ve gone from nonexistent to gross billing of almost $1 billion a year,” he said. ”We expect that threshold to change next year.”
Cedar Park Mayor Matt Powell told Revenue Cycle executives he hoped the agreement would be mutually beneficial.
“This is significant,” he said. “You guys are a leader in your industry, and to have a company like yours headquartered in Cedar Park is meaningful.”
City Council unanimously approved the economic development agreement.
“Welcome to Cedar Park,” Powell said.