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Temple Council designates tax abatement zone, approves 10-year abatement for proposed Rowan data center
Summary
The City of Temple designated Reinvestment Zone No. 47 and approved a tax-abatement agreement with Rowan Temple LLC that would cover a proposed hyperscale data center with a $700 million Phase 1 investment and a 10-year, 50% abatement on increased property value, contingent on meeting investment and job-creation requirements.
The Temple City Council voted to designate a tax abatement reinvestment zone and to approve a tax-abatement agreement with Rowan Temple LLC that would apply to a proposed hyperscale data center on about 5.54 acres northeast of Bobwhite Road and Lorraine Avenue.
City staff described the Rowan proposal as a Phase 1 investment of $700,000,000 and a commitment to create 40 new full-time jobs. Under the agreement approved by the council, the city would abate 50% of the ad valorem taxes on the increase in real and personal property value for 10 years, conditioned on meeting the investment and job-creation thresholds in the agreement.
"The proposal is to construct a hyperscale data center," said Mr. Olsen, a staff member presenting the item. Olsen told the council the abatement structure and the investment and job targets are written into the agreement and that the agreement allows for future phases and potential additional abatements if future investment qualifications are met.
The zone designation covers roughly 5.54 acres and was described on the agenda by property identification numbers (239676242663649112894 and 12855). Staff said the proposal met the city's economic-development policy criteria and referenced Texas Tax Code Chapter 312 as the statutory framework for tax abatement agreements.
Councilmember Grama moved to approve the tax-abatement agreement and Mayor Pro Tem Walker seconded the motion. The council recorded the item as passing with four votes in favor and one abstention. The earlier ordinance to establish City of Temple Tax Abatement Reinvestment Zone Number 47 was also approved in a separate vote (4 yes, 0 no, 1 abstention).
No public speakers addressed the council on the abatement agreement during the meeting. Staff indicated the agreement requires Rowan Temple LLC to meet the stated investment and job-creation conditions to receive the abatement; the agreement also permits subsequent phases to be considered under similar terms if those future investments meet qualification criteria.
The council did not specify which member abstained in the recorded votes. The agreement and zone designation will be implemented according to the terms recorded in the contract and the city's economic development processes.
