Apple gets 15-year property tax exemption for $250 million data center in Prineville, Oregon

“Apple Inc. has agreed to pay local governments $150,000 a year and get a 15-year property tax exemption for the data center it is developing in Central Oregon,” The Associated Press reports.

“In an agreement with Prineville and Crook County, Apple also commits to minimums of 35 jobs at the center, wages 150 percent of the county’s average wage and $250 million invested at its 160 acres of land,” AP reports. “The city of Prineville and Crook County will have to work out how to split the $150,000 payment called a “project fee,” The Bend Bulletin reported Friday.”

AP reports, “The Oregonian reports that the value of the tax break will depend on how much Apple winds up investing… Apple paid $5.6 million in February to buy 160 acres in Prineville and started construction of a modular server farm on the bluffs above town. It hasn’t said how large the development will become. The Bonneville Power Administration is upgrading the electrical infrastructure in Crook County to handle the presence of Apple and other data centers. PacifiCorp has said it will provide power for the Apple project in Prineville, but Apple has told the city it also plans a green energy project there, Prineville City Manager Steve Forrester said.”

Read more in the full article here.

Related articles:
Apple confirms plans for Prineville, Oregon data center; deal signed after state senate passed tax legislation – February 22, 2012
Apple eyes Prineville, Oregon site for huge data center – December 4, 2011
New aerial images of Apple’s planned NC fuel cell, solar farms published – April 7, 2012
Apple’s massive fuel cell energy project to be largest in the U.S. – April 4, 2012
Apple plans USA’s largest private fuel cell energy project in North Carolina – April 1, 2012
How Apple took the lead on the environment – February 22, 2012
Apple patent application reveals next-gen fuel cell powered Macs and iOS devices – December 22, 2011
Apple’s Mothership campus solar roof will be among biggest in U.S. – December 7, 2011
Apple working with US company, Leaf Solar Power, on North Carolina solar farm – November 8, 2011
Apple patent app details highly-advanced hydrogen fuel cells to power portable devices – October 20, 2011
Apple building huge solar farm around its billion-dollar North Carolina data center – October 26, 2011

10 Comments

  1. I will be curious to find out the ultimate value of the tax cuts. It is interesting to me that some people see this kind of deal as good, but direct government stimulus/expenditures that create jobs as totally unacceptable. Depending how much it costs Crook County for those 35 jobs it may or may not be a better deal.

    1. Here’s the thing… it won’t cost Crook County anything for those jobs because if they hadn’t cut the deal, Apple would have gone elsewhere. 35 jobs with property tax cuts is better than 0 jobs with 0 property taxes.

      1. That may not be true.

        I moved from San Diego to Tucson with Intuit when they built and opened an new call center. 5 years later those Jobs and it was about a thousand jobs during tax season moved to VA because they offered a better deal.

  2. As an Oregon resident, I’m happy with Apple’s selection of Prineville for their next data center. That means the electrons will no longer have to travel cross country to get to my Mac and Apple TV.

  3. This American Life showcased the lack of real job creation going on in America. Jobs just move around as companies switch locations based on the incentives and tax breaks they’re given.

    Why they can’t pay their fair share is beyond me.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.