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GARLAND
CITY COUNCIL STAFF REPORT

Agenda Item 7.

City Council Regular Session

Meeting Date:

09/03/2024

Title: Request for Development Assistance from Digital Garland Campbell, LP

Submitted By:

Ayako Schuster

Strategic Focus Area:

Growing Economic Base

Issue/Summary

Council is requested to consider a development incentive request from Digital Garland Campbell, LP in regard to multiple future data center developments as part of a larger data center campus.

Background

Digital Garland Campbell, LP, plans to construct up to four additional data center buildings depending on tenant configurations and needs. These developments will involve a minimum of 160 million in capital investment per building. The full build-out anticipates over 1 Million SF of new data center space constructed. Total capital investment is anticipated to involve over 600 million from the developer and additional investment from potential tenants. This incentive request is separate from the first building of the campus which has already obtained a tenant.

Consideration / Recommendation

Approval of the incentive agreement with Digital Garland Campbell, LP. Agreement includes: a rebate of 50% sales tax, excluding taxes paid on electricity, for 20 years with an annual minimum purchase requirement for eligibility, a 4-year rebate of 40% of taxes collected due to developer’s business personal property per eligible building, and a 4-year rebate of 40% of taxes collected due to developer’s real property taxes collected per eligible building.

Attachments

Proposed Economic Development Incentive Agreement