The Governor’s office says Hulu’s incentive deal from the state is not in jeopardy, despite the company losing both city and county incentives last month.
Texas agreed to give Hulu more than $1.2 million from its Texas Enterprise Fund (TEF) to open the Viewer Experience Headquarters in San Antonio. It required the company invest millions in the site, employ hundreds and pay them above a specific threshold.
TEF has often been called the state’s deal-closing fund for local efforts to attract businesses.
Local economic incentive deals are required before the big state fund can be accessed.
Bexar County and the city of San Antonio ended incentive deals with the streaming TV provider last month.
But state funds “aren’t in jeopardy” according to a governor’s office spokesperson.
City and county canceled deals valued at $780,000 when it was clear Hulu wouldn’t accomplish necessary pay benchmarks for their employees.
The company recently changed its pay structure to one based on merit and bonuses, rather than a minimum. Bexar required 70% of Hulu’s staff should have made a minimum of $15.68 per hour this year.
Texas required the company to create 214 jobs by next year — which it has. Hulu employs nearly 400 people according to city documents.
The basic eligibility for TEF funds require a minimum of 75 jobs pay above the county average, which today is $50,715 a year. The state redacted the total employee compensation package required by the Hulu deal in documents released to TPR.
The company has to invest $13.6 million to improve its San Antonio location as part of the deal.
The state is expected to give the final $180,000 to Hulu this December.