AT&T has secured a $20 million incentive package and a lengthy tax rebate from the city of Plano to build its multi-billion dollar headquarters at 5400 Legacy Drive.
The Plano City Council approved the deal unanimously Monday evening with little debate. It’s the largest incentive package the city has ever given a private employer, leaders said.
Corey Reinaker was the sole speaker before the council vote and said the deal “deserves careful scrutiny.”
“Are we subsidizing investments that the company would make anyway?” Reinaker asked the council. “Is it appropriate to commit that level of long term taxpayer subsidy to a corporation worth billions? This is a substantial public investment with lasting consequences.”
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Reinaker asked leaders to brief the public on the incentives, present an analysis of the costs and expected returns and deliberate the approval thoroughly.
The deal passed with little discussion. On the dais, council member Maria Tu said the deal is “not just a blank check” and confirmed the company will meet certain requirements to receive the funds.
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People wear stickers that read “Yes DART” during a Plano City Council meeting, Monday, Feb. 23, 2026, in Plano.
Elías Valverde II / Staff Photographer
Under the terms of the Chapter 380 agreement, AT&T must spend a minimum of $1.35 billion in construction costs on the project.
The Fortune 500 telecom giant must also 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.
The firm will also receive a 65% property tax rebate on improvements made at the site over 25 years, starting in 2030. The rebate could be extended for an additional decade if AT&T purchases the site.
Half of 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, city leaders said.
AT&T must meet certain benchmarks to receive the grants and rebates. The firm must occupy the headquarters on or before Dec. 31, 2029.
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AT&T CEO John Stankey announced in January that it would build its new home on 54 acres at 5400 Legacy Drive. The company is targeting partial occupancy at the new building as soon as the second half of 2028.
Stankey said the Plano site will provide AT&T with the “necessary room to cost effectively consolidate all Dallas-Fort Worth Metroplex administrative space, including our three largest locations in Central Dallas, Plano and Irving, and create a corporate campus designed for collaboration, innovation and engagement.”
Dallas investment firm NexPoint owns 215 acres where AT&T plans to build the new campus. 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 adds to the northern suburb’s long history of attracting large businesses, from Toyota Motor North America to JCPenney.
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AT&T moved its headquarters to downtown Dallas in 2008.
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.
It’s unclear how many will remain within the city limits or what sort of operations AT&T will keep in Dallas. The firm invested $100 million in its downtown Discovery District which opened in 2021.
This is a developing story and will be updated.