Facebook accepts ATX's friend request

AUSTIN (KXAN) - Facebook officially accepted Austin's "friend request" Friday morning as city leaders and Facebook officials introduced the new sales and operations office to come to the capital city - in its first U.S. expansion move.

The $200,000 economic development incentive to bring the social media giant to Austin cleared the Austin City Council agenda Thursday evening, the final touch needed to bring the boost to the city.

"Austin is, and has been for a very long time, a hub of innovation," said Austin Mayor Lee Leffingwell .

It's a decision that creates a 200-person Austin-based sales and operations facility in the heart of Texas, widely viewed as the Silicon Valley of the South. And it may be a perfect connection between high-tech Austin and a social-media phenomenon used by 400 million worldwide.

"The progressive culture of Austin is going to attract people," said Grady Burnett, Facebook director of global online sales and operations . "We really wanted a special environment. We thought that this city really provided that base for us to establish that presence. I think Austin, with its deep talent pool, is strong."

Up for grabs are 200 positions , with an average salary of $54,000 a year.

"We're charging ahead with our recruiting efforts," said Sarah Smith, who is heading the new Austin office efforts. "I can't wait to meet the talented Texans we hope to hire."

The sales office is the second office in the state of Texas but is the first major  online sales and operations expansion for Facebook outside of Palo Alto, Calif., where the business is headquartered. The other Texas office is located in Dallas, an area Burnett said has seen growth and has been a great place to do business.

Part of Facebook's incentive with Austin is a performance-based grant throughout a 10-year period.

The announcement Friday morning came about two weeks after Gov. Rick Perry announced that the state would invest $1.4 million through the Texas Enterprise Fund to entice Facebook's expansion to Austin.

While $21 million have already been invested in the project, another $12 million are expected to be pumped into the development to ensure Facebook's workforce in Austin.

Burnett said the capital city's office will be the home to the expanding online operations team, which includes more developments and more people.

"We're going to start actively recruiting...sales, customer service, account management, risk management," said Burnett. "I'm tremendously excited to take this step and grow here in the city of Austin."

This is the fourth high-profile company to target the city within th last two months, and city officials said the economic development proposals are essential for keeping Austin competitive on both a national and global scale.

Austin competed for the office with other undisclosed U.S. cities, and it was a competition Leffingwell said he always knew the city would win.

In fact, he said he was so confident he made a bet with the slightly doubtful Smith with 20-to-1 odds that the Council would pass the measure. He said upon approval Thursday, he lifted his fist and shouted, "Bravo!"

"I'm not usually that excited, but there was another factor in that," said Leffingwell, referring to the underlying bet.

"So, Sarah, you owe me a nickel," chuckled the mayor at the end of the press conference.