| City
to weigh tax abatement for Microsoft To lure Microsoft's
new data center here, the San Antonio City Council on
Thursday will consider giving the technology giant a
10-year tax abatement and $5.2 million in incentives.
The 10-year tax abatement is on 44 acres in Charles
Martin Wender's Westover Hills development at 5150 Rogers
Road north of Wiseman Boulevard, according to documents
supporting the plan on the council agenda.
A public hearing is scheduled for 10 a.m. in the City
Council chambers to discuss creating the Westover Hills
Reinvestment Zone and to discuss the Microsoft project.
Officials with the city and with Microsoft could not
be reached Tuesday.
Microsoft is looking to build a 470,000-square-foot
data center and invest more than $500 million. But it
is creating only 75 jobs, so it normally would not qualify
for a 10-year abatement. Annual salaries at the technology
jobs would average $60,000 to $70,000.
The proposed data center is in a zone that allows only
six-year abatements. A project qualifying for 10-year
abatement must create more than 500 jobs and the investment
must exceed $50 million, according to the city's guidelines.
But because of the size and scope of the Microsoft project,
the city's Economic Development Department is recommending
approval. The 10-year abatement would be on real and
personal property and be worth $20.7 million.
Even with the abatement, the Microsoft project is estimated
to contribute $14.7 million in sales taxes, new property
and utility payments during its first 10 years, according
to Economic Development Department documents.
In addition to the tax abatement, the city is asking
CPS Energy's board for approval of up to $5.2 million
to help pay for electrical infrastructure for the project
from CPS Energy's Community Infrastructure and Economic
Development Fund. The fund has a balance of $24.4 million.
"San Antonio is competing with multiple sites
across the country for this proposed project,"
according to an Economic Development Department statement
recommending the project. "Thus, reduction in this
incentive package may result in the project not coming
to San Antonio with the resultant loss in the positive
economic and fiscal impact to San Antonio."
The project would establish San Antonio as an attractive
site for data centers, according to the Economic Development
Department.
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