Loading...
HomeMy WebLinkAboutRES 082206-O - Citicorp Data CenterResolution No. ©Sc20?©lo A Resolution of the City Council of the City of Georgetown, Texas Expressing the City Council's Intent to Provide Economic Development Incentives to Citicorp North America, Inc to Ensure that a Data Center Project is Constructed and Operated in the City Limits of the City of Georgetown and that the Project Becomes a Major Customer of the City's Public Utility Services, Including Wastewater and Electric Services, on Terms that Are Mutually Acceptable to the City Council and Citicorp North America, Inc.; Providing that this Resolution is Subject to Further Actions by the Georgetown Economic Development Corporation and by the City Council; Providing that this Resolution is Subject to Further Requirements of the Texas Tax Code and the Texas Local Government Code and Any Other Applicable Laws; Providing a Severability Clause; and Providing an Effective Date. WHEREAS, the City Council of the City of Georgetown is committed to increasing opportunities for economic development in the City of Georgetown; and WHEREAS, the City of Georgetown has several features that make it attractive for regional and localeconomic development opportunities, including city -owned public utility services such as wastewater and electric services and an efficient transportation network; and WHEREAS, Citicorp North America, Inc. (CNAI) has expressed interest in locating a corporate data center in the City of Georgetown, and the City Council desires to extend incentives to encourage and ensure that CNAI does choose to locate its project in the City of Georgetown; and WHEREAS, CNAI has stated that it will construct and operate a new approximately 305,000 square foot state of the art secure electronic data storage facility with approximately 100,000 square feet of raised floor and to add new jobs associated with the facility in the City by December 31, 2009 on approximately 51.50 acres of land out of the Lewis P. Dyches Survey, Abstract No. 180, in Williamson County Texas, being a portion of a 120 acre tract conveyed to Olivert Brabandt in. Vol. 395, Page 620 of the Williamson County Official Records, said tract being more particularly described by metes and bounds and sketch on Exhibit A (referred to herein as the "Property") , and to annex the Property into the city limits of the City of Georgetown; and WHEREAS, CNAI and. the City of Georgetown acknowledge and agree that the process for considering and awarding economic development incentives is a multi -step process and that public participation is an essential part of that process; and Resolution No. 0Zc2? ©% — t Project Lee Page 1 of 4 WHEREAS, CNAI and the City of Georgetown therefore desire to express their intention to agree on the provision by the City of various economic development incentives in exchange for the construction and operation by CNAI of a new approximately 305,000 square foot state of the art secure electronic data storage facility with approximately 100,000 square feet of raised floor on the Property and to add new jobs associated with the facility in the City in the City of Georgetown, Texas as generally described in this Resolution. NOW THEREFORE, the City Council of the City of Georgetown hereby resolves as follows: Section 1: The City Council finds and declares that the foregoing recitals are true and correct and are incorporated hereinby reference for all purposes, and that the adoption of this Resolution is in conformance with the following Century Plan Policy Statements: 1.0 The community enjoys the benefits of well -planned land use in which conflicting needs are balanced. 9.0 Citizens and commercial goods move safely and efficiently throughout all parts of the City. 10.0 Georgetown's citizens and businesses enjoy an attractive community with a unique sense of place and a positive, identifiable image, at a cost which is consistent with other city social and economic priorities. 11.0 City owned, sponsored, or managed utilities are competitively priced and provide safe, adequate, and reliable services to all customers 13.0 Allmunicipal operations are conducted in an efficient business -like manner and sufficient financial resources for both current and future needs are provided. 15.0 The City manages its resources in a sound and fiscally conservative manner. Section 2: The City Council. and CNAI enter into one or more agreements by which CNAI constructs and operates a new approximately 305 000 square foot state of the art secure electronic data storage facility with approximately 100,000 square feet of raised floor and adding new jobs associated with the facility in the City by December 31, 2009 (the "Prof ect') on the Property, and CNAI agrees to take all of the electric utility service necessary for the Project and the Property from the City of Georgetown, for the term of Resolution No. ©(22 ©& Project Lee Page 2 of 4 such agreements, and to annex the Property into the city limits of the City of Georgetown. Section 3: That, in exchange for CNAI's construction and operation of the Project on the Property and agreement to take all of the electric utility service necessary for the Project and the Property from the City of Georgetown, for the term of such agreements, and to annex the Property into the corporate limits of the City, the City agrees to commence the processes necessary to provide the following economic development incentives generally described below from the City to CNAI: A. After annexation of the Property into the City limits, and following notice and public hearings as required by law, provide a 10-year property tax abatement equal to a percentage of the incremental increase in City real and personal property taxes based on the real and personal property improvements on the Property according to the following schedule: Year 1: 100% Year 6: 75% Year 2: 100% Year 7: 50% Year 3: 100% Year 8: 50% Year 4: 75% Year 9: 50% Year 5: 75% Year 10: 25% B. Nominate the Project to the Texas Economic Development Bank as an Enterprise Project pursuant to Chapter 2303, Subchapter F of the Texas Government Code. C Install, at no cost to CNAI and on terms acceptable to the City, two electric distribution circuits, automatic switching device and other electric infrastructure improvements and capacity reservations for a ten (10) year term, up to a cost of $5.1 million. D. Beginning on September 30, 2009 and as of September 30 for at least ten (10) years, CNAI shall use and/or pay for sufficient electric energy m MW Demand charges, MWh usages, and at the load factor provided for each corresponding year, usages for the Project located on the Property from the City of Georgetown such that the City's General Fund receives a rate of return from the City's Electric Fund equal to at least the amounts for Demand and Energy requirements as shown for the corresponding years on attachment to the letter dated August 16, 2006 provided to the City of Georgetown by SourceOne, Inc Resolution No. 2822 04Q-0 Project Lee Page 3 of 4 E. Waive 50% of the water and wastewater impact fees and the application and inspection fees for the Project, up to a maximum of $150,000. F. Cooperate with the Georgetown Economic Development Corporation (GEDCO) to use economic development sales and use tax revenue to construct a wastewater line to a pomt on Inner Loop Road of a size sufficient to serve the Project on the Property, which line canbe extended by CNAI (at its cost) to serve the Property Section 4: This Resolution is made subject to the further proceedings of the Georgetown Economic Development Corporation (GEDCO) with regard to the extension of the wastewater line to the Property. Section 6: This Resolution is made subject to the further provisions of the Texas Tax Code, the Local Government Code, and the Texas Open Meetings Act, including, without limitation, the provisions for pubhc notice and hearings and final action. Section 7. If any provision of this Resolution or application thereof to any personor circumstance shall be held invalid, such invandity shall not affect the other provisions, or application thereof, of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are hereby declared to be severable. Section 8: The Mayor is hereby authorized to sign this Resolution and the City Secretary to attest. Section 9: This Resolution shall become effective upon its passage. RESOLVED on the cod -day of A 1`l EST: Sandra D. Lee City Secretary APP !y ED AS TO FORM: P. tricia Carls, City Attorney , 2006. THE CITY OF GEORGETOWN: .By: Gary Nelon Mayor Resolution No. 01.2.2 067 - 0 Project Lee Page 4 of 4