The company, called Switch, is already building a facility next to Dell’s headquarters.
ROUND ROCK, Texas – On Thursday evening, the Round Rock City Council unanimously agreed to an economic deal with a technology company called Switch.
The Company is a Las Vegas-based data center provider currently constructing a 150,000 square foot facility in Round Rock. Switch has acquired the land for the construction of Dell’s new facility and will build it next to Dell’s headquarters. They hope for 15 new jobs.
Corresponding an exemption from the cityThe agreement requires Switch to invest at least $80 million in real estate enhancements and private home additions in the city by the end of 2026. In exchange, incentive payments will be made based on 50% of the city’s one-cent sales and use tax revenue from switch-generated activity, calculated quarterly through the end of the agreement in 2037.
The agreement does not include stimulus payments from Round Rock’s half-cent sales tax, which are designed to reduce property taxes. The city said it will not affect Type B economic development revenue of half a cent. The agreement is performance-based and includes clawback provisions in the event Switch fails to meet its obligation under the press release.
“Switch has found a great home here in Round Rock to offer world-renowned data centers and technology solutions,” said Round Rock Mayor Craig Morgan in a press release. “This agreement provides them with an opportunity to take their performance to the next level while generating a significant amount of use tax revenue that will benefit our residents for years to come.”
Under the agreement, $80 million in taxable sales and purchases would be attributed to Switch, $1.2 million in net revenue for the city of Round Rock and $4.8 million for the state Generate Texas, according to the press release.
https://www.kvue.com/article/money/economy/boomtown-2040/round-rock-approves-development-agreement-tech-company-switch/269-5d2b0e8c-7299-4948-a192-8704c595e2c0 Round Rock City Council approves development deal with Las Vegas technology company