STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: February 24, 2021
COUNCIL DISTRICT(S): 14
DEPARTMENT: Office of Economic Development
EXECUTIVE: Dr. Eric A. Johnson
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SUBJECT
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Authorize an economic development agreement with Digital Realty Trust, L.P., approved as to form by the City Attorney, granting: (1) a business personal property tax abatement exempting 50 percent of the taxes on the added value to the net new tangible personal property for a period of five years Estimated Revenue Foregone: City ad valorem business personal property taxes up to $252,929.00 over a five-year period; and (2) a Chapter 380 Economic Development Grant in an amount of $200,000.00 in consideration for job creation and a multiphase expansion and renovation of Digital's offices located at 2323 Bryan Street, Dallas, Texas in accordance with the City's Public/Private Partnership Program - Not to exceed $200,000.00 - Financing: Public/Private Partnership Fund
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BACKGROUND
Digital is a leading global provider of data center solutions for customers across a variety of industries ranging from cloud and information technology services, communication and social networking to financial services, manufacturing, energy, healthcare, and consumer products.
Digital currently owns a 26-story 477,107 square foot office tower located at 2323 Bryan Street in Dallas's central business district. To support its global growth, Digital has proposed to renovate parts of the Bryan Street location to expand both the data center capacity and the office area. The expanded facility would be considered one of Digital's "Centers of Excellence" for cybersecurity, IT, legal, procurement, data center operations, human resources and accounting.
Digital is considering an 8-year plan with four phases of development totaling approximately $126 million. However, the incentive agreement is tied to the capital spending ...
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