AT&T’s plan to relocate its global headquarters to Plano is moving into a new phase as city officials prepare to consider a package of economic incentives tied to the $1.35 billion redevelopment project.

Plano City Council will consider two economic development agreements Feb. 23 that would offer $20 million in financial incentives to AT&T in exchange for establishing the company’s global headquarters in Plano’s Legacy District.

“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,” Plano Mayor John Muns said in a previous statement.

If approved, the agreements would support the redevelopment of the former Electronic Data Systems campus, marking Plano’s first major corporate headquarters redevelopment project.

AT&T CEO John Stankey announced Jan. 5 the company plans to relocate its global headquarters to a new 54-acre campus at 5400 Legacy Drive, which is part of the Electronic Data Systems campus at Parkwood Boulevard and Legacy Drive.

Breaking it down

Under the proposed agreements, the city would offer a mix of grants, fee waivers and long-term property tax rebates.

In return, AT&T would be required to build at least 2 million square feet of space and invest a minimum of $1.35 billion in construction costs, according to city documents.

Additionally, AT&T would be required to occupy the new building by Dec. 31, 2029 and create, transfer or retain up to 10,000 full-time equivalent jobs.

If those benchmarks are met, AT&T would become Plano’s second-largest employer, just behind JPMorgan Chase.

Zooming in

The first agreement would provide up to $20 million in city-funded grants, including $10 million for the redevelopment and $10 million tied to job creation.

According to city documents, the job creation grant would be awarded in phases as employment benchmarks are met, including:

$4 million for maintaining the first 4,000 jobs$4 million for reaching 8,000 jobs by the end of 2034Up to $2 million for reaching 10,000 jobs by the end of 2039The second agreement details a 65% property tax rebate that would last for 25 years. AT&T could choose to begin the rebate period Jan. 1 of 2029, 2030 or 2031, according to city documents.

City documents note that if AT&T purchases the property during the 25-year period, the company would qualify for a 10-year extension of the tax rebate, but the rebate rate would drop from 65% to 25% during that period.

Plano Planning and Zoning commissioners previously approved two items tied to the former Electronic Data Systems campus as redevelopment plans for the property continue to take shape.

Commissioners approved a zoning request Feb. 2 that reverted the property back from a planned development to commercial employment, a designation intended for “corporate headquarters and research facilities arranged in a campus-like setting,” according to city documents.

The site was previously part of the 200-acre Texas Research Quarter, a planned life sciences district. The property is still owned by the group behind the development, according to the Collin County Appraisal District.

What’s next?

The items are set for discussion and possible action at Plano City Council’s 7 p.m. meeting Feb. 23.