THE DALLES — A year after breaking ground on its fourth data center, Google has been issued a permit to begin construction on its fifth. This is the second of two to be built at 3500 River Road, the former aluminum plant site. These data centers are part of a Strategic Investment Program (SIP) agreement between the City of The Dalles, Design, LLC (Google) and Wasco County.
Google’s previous three data centers in The Dalles were built under Enterprise Zone agreements, City Manager Matthew Klebes said. The previous agreements provided tax abatement to Google, with the corporation paying various fees associated with each data center.
“This agreement is a little bit more complicated,” Klebes said. “There’s a couple of different components.”
Like with previous agreements, each of the two data centers have a 15-year tax abatement. However, according to Klebes, under a SIP agreement, a portion of each data center is taxed based on state statute and law under the SIP program.
Under this program, Google will be responsible for paying an annual community service fee, which is based on a percentage of their tax savings, capped at $2.5 million a year. This fee will be distributed to all of the taxing districts, as previously decided on by the city and county. Additionally, for 15 years, the city and county will split a guaranteed annual payment from Google.
Google will also pay an initial fee of $3 million during the construction of the data center.
According to the permit issuance, the data center will be an approximately 290,000 square foot single-story building. The general contractor for the development is Whiting-Turner Contracting Company.
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