Abilene council approves reinvestment zone and tax abatements to expand data-center campus

Abilene's City Council voted to create Reinvestment Zone RZ25-1 and approved three tax-abatement agreements to support an expansion of a large data-center campus, after residents raised concerns about transparency, annexation and local impacts.

City Manager Emma Crawford told the council the reinvestment zone covers roughly 614.91 acres and meets the criteria in the Texas Tax Code chapter 312 and the city's resolution on tax abatements. Crawford said the expansion covers three projects: Phase 9, a minimum 100,000-square-foot data center with a minimum taxable assessed value of $200 million and a minimum private construction investment of $350 million (with a $500 million target); Phase 10 with identical terms; and a gas-turbine electric generation plant also with a $200 million minimum assessed value and at least $350 million in expected investment. "Phase 9 ... will have a minimum taxable assessed value of $200,000,000," Crawford said. "The minimum expenditure by the private investment is 350,000,000 with a target of 500,000,000."

Crawford said each data-center phase commits to a minimum of 50 full-time employees and the power plant to 22 full-time equivalents, and that the overall expansion would create a minimum of 122 full-time jobs with a base wage commitment of at least $57,600 (about $72,000 including benefits). Each project includes two 10-year tax abatements at 75 percent; she said the second abatement applies only to new construction or improvements after the first 10 years.

Residents who spoke during the public hearings expressed frustration about notice and long-term consequences. "You own this, and you own everything that the city citizens of this community are suffering right now," Samuel Garcia, a resident, told the council, linking the abatements and annexation to rising rents and disruptions from construction. Tammy Fogle, another longtime resident, asked the council for clearer access to meeting materials and more opportunities for meaningful input.

Supporters and staff said the reinvestment zone and abatements are tools to attract and retain major investment that would expand the local tax base and employment. Crawford noted the zone surrounds the existing Lansium campus and that abatements and reinvestment zones are authorized under state law. "This reinvestment zone does meet the criteria for creation as set forth by Texas tax code chapter 312," she said.

Council members approved the reinvestment zone and the three tax-abatement agreements by voice votes. The council also noted any future assignment of abatement agreements or confirmed tenants would require separate council approval.

The council approved the measures after recessing for an executive session that addressed economic development among other matters; no votes were taken in closed session. The council recorded the final approval in open session and moved on to appointments and adjournment.

What happens next: The abatement agreements and reinvestment zone are now in place. The city said any assignment of abatements or confirmed tenants for individual buildings would return to council for approval, and the public will have future opportunities to review any specific site plans or permit applications.