The Board of Directors of the Greater Austin Chamber of Commerce voted unanimously to oppose Proposition 2 on the November 4 ballot and urged all of its members to join in opposing its passage.

Proposition 2, if approved by the voters, would require the City of Austin to violate existing contracts with Mueller Redevelopment in East Austin and the Domain causing damage to the City’s reputation with respect to honoring its commitments, possibly causing serious financial consequences to City tax payers through litigation and a down grade of Austin’s bond ratings.

“Proponents of Prop 2 have claimed this ballot initiative is about providing incentives to projects that have a retail component. If this ballot initiative was really about that, then it is not even necessary as Austin City Council amended its policy in 2007 to eliminate eligibility for incentives for projects that have a retail component,” said Mike Rollins, President & CEO of the Austin Chamber.

The City of Austin's Chapter 380 agreement terms either involve a public purpose or are performance-based, requiring compliance with specific and tangible goals before making payment.

“This ballot initiative simply is about fairness, right from wrong and whether Austin should keep its word,” said Rollins. “Fundamentally, businesses and individuals, all make everyday decisions based agreements and contracts for performance. This ballot initiative has far reaching reverberations from Wall Street to international to regional about Austin’s reputation than proponents would have people believe.”