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Board signs off on tax-incentive agreement for proposed South Stillwater data-center campus
Summary
The board approved a tax-incentive agreement and a related memorandum of understanding with the City of Stillwater that lays out phased payments tied to a proposed data-center development; city officials said the deal was negotiated to secure recurring payments to local taxing jurisdictions.
The Stillwater Public Schools Board voted Feb. 11 to approve a tax-incentive agreement and a related memorandum of understanding with the City of Stillwater tied to a planned data-center campus within city limits.
The agreement sets a multi-decade framework for property-tax exemptions and negotiated payment-in-lieu arrangements for the developer's planned buildings. During the meeting, the city manager explained the state's Oklahoma Local Development Act allows creation of tax-incentive districts for up to 25 years and that the local jurisdictions had negotiated a payment schedule. ‘‘The state statute allows for a tax incentive district to be created up to 25 years,’’ Brady, the city manager, said during the presentation.
Why it matters: district staff and city leaders said the negotiated payments will channel recurring funds back to local taxing jurisdictions under the developer's phased build-out rather than waiting until the TIF matured decades later. The board and city said the school district's negotiated share was increased in talks with the developer and city leaders to $624,000 per building per year, with a 1% annual increase described in the meeting record.
What was discussed: the city manager described how the developer's expected facilities were valued and how the district's negotiated payment compares with other industrial examples. The campus master plan contemplates up to six data-center buildings; the city presentation referenced an approximate per-building valuation of about $500 million because of the building and high-value equipment to be located inside.
Board action and timeline: the board approved the tax-incentive agreement and the TIF MOU; city leaders told the board a public announcement with the developer is targeted for late March or April. City and other taxing jurisdictions must continue to coordinate timing and payments.
Quotes: Brady, City Manager: "The state statute allows for a tax incentive district to be created up to 25 years." (city manager presentation)
Next steps: district finance staff and city officials will coordinate to implement the payment schedule described in the MOU and the tax-incentive agreement, and the city expects a public announcement from the developer in late March or April.
