\t\t\t\t\t\t\tPlans for AT&T\u2019s new $1.35 billion global headquarters in Plano are moving forward.<\/p>\n
Plano City Council approved<\/a> two economic development agreements Feb. 23 that would offer $20 million in financial incentives to AT&T in exchange for establishing the company\u2019s global headquarters in Plano\u2019s Legacy District.<\/p>\n The agreements would support the redevelopment of the former Electronic Data Systems campus<\/a>, marking Plano\u2019s first major corporate headquarters redevelopment project.<\/p>\n \u201cWe are honored to welcome AT&T as the newest member of our Plano business community and deeply grateful for the opportunity to support their global headquarters,\u201d Mayor John Muns said in a statement following the vote.<\/p>\n What\u2019s happening? <\/p>\n AT&T CEO John Stankey announced<\/a> Jan. 5 the company plans to relocate its global headquarters to a new 54-acre campus at 5400 Legacy Drive.<\/p>\n The site was originally developed in 1985 as the headquarters for Ross Perot\u2019s Electronic Data Systems, a project that city leaders said helped fuel \u201clong-term economic growth\u201d in Plano\u2019s Legacy District, according to city officials.<\/p>\n Michael Ford, head of AT&T\u2019s global real estate and security, said in a statement the company is excited to build its new headquarters in an environment that is dedicated to positive business growth.<\/p>\n \u201cWe look forward to continuing to work closely with Plano city leaders as we execute on our vision for a world-class campus, designed for collaboration, innovation and engagement, that our employees can be proud of for many years to come,\u201d Ford said.<\/p>\n Zooming out<\/p>\n Stankey said in the statement the campus will be built to accommodate evolving workplace needs while maintaining AT&T\u2019s long-term presence in North Texas.<\/p>\n Plano Deputy City Manager Doug McDonald said previously<\/a> Plano\u2019s corporate influence makes it an attractive location for companies that want access to Dallas but need more space, especially as corporate growth continues moving north.<\/p>\n If AT&T meets the required benchmarks of the economic incentives, the company would become Plano\u2019s second-largest employer<\/a>, behind JPMorgan Chase.<\/p>\n What it means<\/p>\n Under the proposed agreements, the city would offer up to $20 million across two separate economic development agreements, primarily for tax rebates and job grants.<\/p>\n The first agreement<\/a> would provide up to $20 million in city-funded grants, including $10 million for the redevelopment and $10 million tied to job creation.<\/p>\n According to city documents, the job creation grant would be awarded in phases as employment benchmarks are met, including:<\/p>\n $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<\/a> 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.<\/p>\n \u201cAll of our economic development agreements are performance-based, so the company has to meet certain metrics in order to be paid out for those incentives,\u201d McDonald said.<\/p>\n 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.<\/p>\n 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. Stankey said previously AT&T is targeting partial occupancy at the new headquarters by the second half of 2028.<\/p>\n 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.<\/p>\n One more thing<\/p>\n 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.<\/p>\n