With zero property taxation. Facebook confirmed plans, reported last month, to expand into Altoona, Iowa. The company will invest $400 million construct a facility within the city, where it’s been operating since 2015. The 1 million square foot building will be aided by an agreement, signed on Monday, under which the town will waive property taxes for 20 years, in accordance with the Des Moines Register, which originally broke the news of the expansion.
The new H shaped building will be on a website where Facebook already has information centers, and a seemingly continuous program of expansion.
Another million sq foot building is already under construction. Facebook set its sights on Altoona in 2013, and began construction there in 2014. Even though Facebook is exempt from 20 years property taxation on the new building, the Des Moines Register reports that it’ll really pay the equivalent of 60 percent of these taxes. After the information center is operational, Facebook will cover about $3 million annually for the rest of the 20 year period. These same terms are readily available to Facebook for all future development throughout the following 20 years. Facebook will improve the water infrastructure, paying $500, 000 to have a brand new pumping station constructed, that will boost water pressure in the information center and in nearby stores and land that has yet to be developed.
Prior to the hearing, the council kept the terms of the deal secret, thanks to confidentiality agreement with Facebook. The Des Moines Register spotted that the application fort he so called Sequelant centre was registered by a company named Siculus, which had previously been utilized by Facebook for other projects from the region. Other Altoona businesses, such as a concrete business, have criticized the tax break, but Altoona City Council has defended themsaying Facebook now has created contracting jobs, with more than 1, 100 people building the last phase. This project will make Facebook the second highest revenue generating business in Altoona, said town administrator Jeff Mark, and future expansions might make it the highest. Facebook first announced its plans to construct a data center in Altoona in 2013. Ever since then, the company has invested nearly $1.5 billion to develop the website and has increased its footprint to 2.5 million sq legs of building space.