PROVO — Utah County Commissioners on Tuesday gave their thumbs up to a deal to lure a data center to Eagle Mountain shrouded in secrecy — but not without first grappling with some concerns.
That included implementing a 40-year cap in the interlocal agreement that would start out with an estimated $150 million in tax breaks for the data center’s first two-building phase, with taxes to be waived for up to 20 years per phase.
But the deal could include tax breaks of hundreds of millions of dollars more, depending on how many buildings the company completes over the next 40 years — with no cap on tax revenue waived or number of buildings built, the Deseret News learned Tuesday.
Theresa Foxley, president of the Economic Development Corporation of Utah, said in an interview it was too early to say how many more phases or buildings the company might build, but she did say the tax break for each phase would likely be “similar in terms of scope and scale” as the initial phase.
The “constraint,” Foxley said, would be “space” — or whatever can fit on the roughly 480-acre parcel just south of the city’s center.
That means if the company builds, for example, two more phases (or four more buildings) on the parcel, that could equate to $300 million more in tax breaks for 20 years each phase, on top of the initial $150 million, 20-year tax break, as long as the phases are completed in the 40-year time frame.
The deal for the mystery company — which may be one of the Fortune 100 companies Google, Apple or Facebook — still needs approval from two other tax districts, slated to vote this week: Alpine School District and the Central Utah Water Conservancy District. Eagle Mountain and Unified Fire Authority have already signed off.
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Source:: Deseret News – Business News