Plano is calling AT&T, and the Collin County suburb is prepared to shell out $20 million in incentives — and a lengthy property tax rebate — to the telecom giant for its new multibillion-dollar global headquarters.
The package deal represents the largest incentive package the city has offered to a private employer to date. Plano City Council members are scheduled to vote on the incentives at their Feb. 23 meeting.
AT&T must spend a minimum of $1.4 billion in construction costs on the project.
The firm must build a minimum of 2 million square feet of office, amenity and retail space at the site, eventually employ 10,000 full-time workers at the property and occupy the planned headquarters for 25 years, according to city documents.
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The firm will also receive a 65% real property tax rebate over 25 years starting in 2030.
AT&T did not comment on the proposal Tuesday afternoon.
Half the grant is intended to offset the cost of redevelopment at the site. The $20 million will leave a balance of nearly $36.8 million available for future projects in the city’s economic development fund, according to city documents.
AT&T CEO John Stankey announced in early January that the Fortune 500 company would build its new home on 54 acres at 5400 Legacy Drive.
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The company is targeting partial occupancy at the new building as early as the second half of 2028.
Dallas investment firm NexPoint owns 215 acres where AT&T plans to build its new home. The site includes the former Electronic Data Systems headquarters, H. Ross Perot Sr.’s information technology company that was founded in the 1960s.
Plano Mayor John Muns and other city leaders have lauded AT&T’s move as another chapter in Plano’s success story. The corporate relocation build’s on the suburb’s long history of attracting large businesses, from Toyota Motor North America to JCPenney.
“AT&T’s relocation represents a powerful reinvestment in the Legacy business district, building on an extraordinary foundation that has driven growth in Plano and our region for decades,” Muns said in a statement in January.
“The addition of AT&T brings fresh momentum to this iconic area and helps position Legacy for its next generation of success.”
City planning officials recently recommended more than 90 acres at the site be rezoned, giving AT&T more flexibility to build its corporate campus.
It’s unclear what the move means for AT&T’s presence in downtown Dallas, which has been its home since 2008.
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Its lease at the 37-story Whitacre Tower at 208 S. Akard St. runs through Dec. 31, 2031, AT&T said. The tower is owned by Pacific Elm Properties and Dundon Capital Partners.
AT&T had nearly 6,000 workers assigned to its downtown offices in 2022. The Dallas Economic Development Corp. estimates the company has nearly 10,700 employees in the city of Dallas.
The telecom giant occupies 3 million square feet of office space — more space than any other private employer in Dallas, according to data from real estate information firm CoStar.
The company spent $100 million on the Discovery District, which includes a massive video screen, a food hall and outdoor seating space. It opened in 2021.
AT&T’s exit is expected to have a significant economic impact on Dallas. Downtown Dallas Inc. estimated that relocation could cause a 30% plunge in property values, costing downtown an estimated $2.7 billion in overall value.
This is a developing story and will be updated.
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