Winner, LLC (Company), an established Delaware LLC registered to do business in the State of Texas, will develop and operate a build to suit Data Center to be located on approximately 110 acres of vacant land at the northeast corner of Alliance Gateway and Park Vista Boulevard. The project will comprise approximately 250,000 square feet of space with a total investment at build-out of $250,000,000.00 by December 31, 2017. In return, the City will pay the Developer up to 10 annual Economic Development Program grants, as authorized by Chapter 380, Texas Local Government Code. The first year's economic development incentive will be a combination 10 percent abatement of ad valorem real property taxes under a Tax Abatement Agreement and a Program Grant based on the tax revenues outlined below, excluding those amounts abated.
The amount of each annual Program Grant will be calculated in accordance with the amount of (i) incremental real property tax revenues from the land that were received by the City for the previous tax year; (ii) personal property tax revenues from New Taxable Tangible Personal Property that were received by the City for the previous tax year; (iii) revenues received by the City from a one percent sales tax on taxable business personal property; (iv) revenues received by the City from electricity franchise fees collected from Company and paid to the City by Oncor; (v) revenues received by the City from new taxes, if any, that are adopted by the City after the effective date and that are not restricted for a specific purpose and that are otherwise unrestricted, and, except for the first Program Grant; (vi) revenues received by the City from a one percent sales tax on any Data Center Systems that are integrated into the real property and are into considered taxable business personal property, less the Required Minimum Annual Revenue retained by the City.
The Required Minimum Annual Revenue retained by the City will be established at $2,150,000.00 in year one and will increase two percent each year during the term of the Agreement. The Company may earn an annual reduction up to $150,000.00 in the Required Minimum Annual Revenue if the Company meets the following terms during construction:
- Expends a minimum of $50,000,000.00 with Fort Worth contractors during construction of the facility (worth a reduction of up to $100,000.00)
- Expends a minimum of $25,000,000.00 with Fort Worth M/WBE contractors during construction of the facility (worth a reduction of up to $50,000.00)
The actual amount of the reduction will be applied proportionally for each category.
The overall project could consist of additional investment of $250,000,000.00 each and the aggregate amounts of the grants will be tied to the amount of total project investment made by the Company.
However, the Company is not required to make investment in excess of the $250,000,000.00 real property improvement commitment and the personal property commitment in order to receive the base program grants with a term of 10 annual payments.
For each additional $250,000,000.00 invested by the Company before the seventh annual grant payment, the number of annual grant payments will be increased by five, not to exceed a total of 10 additional grant payments or a total of 20 payments for the term.
The Company will also provide or cause to be provided at least 40 full-time jobs during the term of the Agreement.
Staff recommends entering into an Economic Development Program Agreement with the Company for the project.
This project is located in COUNCIL DISTRICT 7, Mapsco 9J.