The City Council gave final approval last week to a $6.5 million city incentive package for a technology company that promises to bring 2,000 jobs to New Orleans over the next seven years.
The council unanimously approved the deal, which was listed with numerous other items on its consent agenda Thursday, after securing a pledge that the Fortune 500 company bringing the jobs, DXC Technology, would work to hire local talent.
That pledge came after members of The Collaborative, a coalition of small and disadvantaged businesses, urged the council to consider asking DXC to meet the same kind of hiring goals for disadvantaged and minority workers and subcontractors that apply to city contracts for public work.
DXC’s local director, Terrell Boynton, also agreed to meet regularly with Councilman Jason Williams, The Collaborative and the New Orleans Regional Black Chamber of Commerce to discuss the company's progress in hiring disadvantaged local residents.
DXC will receive the $6.5 million over the next decade, with annual installments from the city and the Industrial Development Board coming only after the company shows it has met the city’s requirements for job creation.
If the actual job numbers are below the requirements, the incentive will be prorated to reflect the lower number.
That incentive is part of a much larger pool of financial inducements the state offered to lure the company, which was formed last year by the merger of Computer Services Corp. and the enterprise services business of Hewlett Packard Enterprises.
The state agreed last year to a package valued at $115 million, which includes a $25 million initiative that will focus on expanding the number of degrees that Louisiana colleges and universities award annually in science, technology, engineering and math.
The company also is in line for $18.7 million in performance-based grants over the next five years to help cover some of its initial costs, and it will participate in other benefits programs the state regularly offers to companies.