““We hope to build Apple’s next data center in Reno to support Apple’s iTunes Store, App Store and incredibly popular iCloud services,” Apple spokeswoman Kristin Huguet told AllThingsD,” Paczkowski reports. “‘If approved, this project would expand our presence in Nevada and create hundreds of construction jobs over the next year, plus permanent jobs at the data center which will add to our existing total of nearly 400 employees in the state.’”
Paczkowski reports, “If the deal is approved, Apple could break ground on a new data center as soon as August. Once it’s finished and online, the company will have major data facilities in Newark, Calif.; Maiden, N.C., and soon Prineville, Ore., as well.”
Read more in the full article here.
Brian Duggan reports for The Reno Gazette Journal, “Apple is planning on opening a data center to house its cloud computing service east of Sparks as well as a business and purchasing center in downtown Reno, part of a $1 billion investment the company plans to spend in Northern Nevada over the next 10 years.”
“The deal includes $89 million tax abatements from the city, county and state over the next decade, effectively reducing the company’s tax burden by 79 percent, according to an analysis of the project by Phoenix-based Applied Economics,” Duggan reports. “About 82 percent of those tax breaks will come from local governments and the rest from the state. Those tax breaks include a reduction on 85 percent of the personal property tax for 10 to 30 years. If all local governments approve the deal today and tomorrow — including the Washoe County School District and the Reno City Council — Apple’s effective sales tax rate will be less than 1 percent. In all, local and state governments would collect about $16 million in tax revenue from Apple over the next 10 years.”
Duggan reports, “Meanwhile, Applied Economics estimated the overall economic impact of the project to be $343 million, which includes up to 41 full-time jobs at the data center and 200 contract employees. About 580 construction jobs are planned for the project — an estimated $103 million economic impact on the region. Greg Ferraro, who runs a Reno public relations firm, told county commissioners on Tuesday: ‘This is the most significant economic news we’ve had in our region in over 15 years.’”
“The Reno City Council will consider its portion of tax abatements on Wednesday, pledging 75 percent of its share of sales taxes to the company,” Duggan reports. “The downtown business park and purchasing center that Apple plans to build in Reno will be located in the so-called Tessera District, which has the ability to issue sales tax-backed STAR bonds. ‘Certainly (Apple) is a seed to the Tessera project itself and a seed maybe for a larger Apple presence,’ said Steve Polikalas, one of the principle developers behind the project. ‘But even if it facilitates the Tessera project, which it will, it should we expect, it’s just absolutely exciting and transformative.’”
“Today, the Washoe County Board of Commissioners approved its share of abatements for Apple’s planned data center in the Reno Technology Park, located east of Sparks along Interstate 80. The Washoe County School District will vote on the item this evening and the Reno City Council tomorrow,” Duggan reports. “The next step is for state economic development officials to screen those tax breaks, a process that is expected to take about a month with construction starting as early as August.”
Much more in the full article here.
MacDailyNews Take: Voting for tax abatement to entice Apple is a no-brainer. Anyone who doesn’t is either playing politics or needs to take/retake Economics 101. Reno voters should keep a close eye on this and remember which of their representatives, if any, vote against enticing Apple to the area and punish them accordingly at the ballot box.
Travis County approves tax incentives for Apple’s Austin campus expansion – May 2, 2012
Apple gets 15-year property tax exemption for $250 million data center in Prineville, Oregon – April 20, 2012
Apple confirms plans for Prineville, Oregon data center; deal signed after state senate passed tax legislation – February 22, 2012
Apple lobbies Obama for tax holiday, wants to bring overseas bounty home – August 24, 2011
U.S Senate Democrat Schumer allies with Apple, other multinationals on repatriation tax talks – June 21, 2011
Governor signs tax break, Apple confirms it will build NC data center, investing at least $1 billion – June 3, 2009
North Carolina Senate approves tax law change for Apple Inc. in 40-8 vote – June 2, 2009
North Carolina lawmakers OK tax incentives for Apple Inc. – May 27, 2009