Douglas County approves 35-year business personal property tax rebate for Flexential data center after public concern

The Douglas County Board of County Commissioners voted unanimously Aug. 11 to approve a business personal property tax incentive agreement with Flexential Corporation for the company’s proposed Parker data center, agreeing to rebate 100% of the county’s share of that tax for up to 35 years under project file ED2025-002.

Staff principal planner DJ Beckwith told the board the proposal provides a 100% rebate of Douglas County’s portion of business personal property tax for a maximum term of 35 years, a term allowed under state statute. Jack Vaughn, representing Flexential, said the planned facility is a closed-loop cooling system and that the company will sign a contract with CORE Electric to pay for required electrical upgrades and for utilities used at the site.

The proposal drew a 30-minute public comment period. Doug Chestnut, a Douglas County resident, opposed the incentive and argued the company’s corporate backing and size made the long-term rebate inappropriate for a project that will employ a limited number of local staff. "I oppose this," Chestnut said. "They're only gonna have 16 employees for $19,500,000 a year, for 35 years. I think that's grossly out of context." Other speakers asked the board for contractual guarantees that water and electric impacts would remain limited and enforceable.

Jack Vaughn said the data center’s closed-loop cooling (filled with glycol) is designed to limit water use. He told the board the site is expected to use under 600,000 gallons of water a year—"less than 5 to 6 families of 4 for Colorado"—and that most water use will be for bathrooms, landscaping and employee needs. Vaughn also confirmed Flexential will enter an electric service agreement with CORE and pay the costs to upgrade that substation.

Commissioners discussed the county’s long-standing practice of offering the county-portion rebate to prospective businesses. Commissioner Van Winkle, who moved the approval, said the rebate is a common economic-development tool that other taxing entities will continue to collect and that the county’s portion is the only part being rebated. Commissioner Layton seconded the motion; the chair called the roll and the motion passed unanimously.

The board’s action follows prior review at a March 2025 work session and public discussion at the Parker planning and town council level, where officials said the project had already won local approval. Staff said the county’s assessor audits business personal property annually and that rebates are issued after that review. Project documentation and the county’s statutory authority for such rebates were referenced during the staff presentation.