The development agreement has been unanimously approved by the Altoona City Council, along with various other agreements and a site plan for the project.

The online social networking services company Facebook Inc., has reportedly planned to invest $400 million to construct its fifth data center building in Altoona. The company has signed a development agreement with Altoona city to waive off property taxes on the proposed building for 20 years. The building will spread across nearly 1 million square feet.

Reportedly, the building is mentioned as “Project Sequelant” in the city documents. The gigantic H-shaped building will be constructed next to the company’s another under construction million-square-foot building. Both the buildings will be the largest on the property after completion.

The development agreement has been unanimously approved by the Altoona City Council, along with various other agreements and a site plan for the project.

Under the agreement, Facebook will be exempted from paying property taxes on the new building for 20 years. But the company has agreed to pay the city $3 per square foot or about $3 million per year during the tenure of 20 years after completion of the project and moving into the building.

Jeff Mark, City Administrator, Altoona, reportedly stated that the payments by Facebook are equivalent to around 60 percent of the property taxes per year on the building if Facebook would be paying property taxes.

Reportedly, Facebook will also pay for building a new pump station worth $500,000 which will increase the water pressure for the data center, Bass Pro Shops, the Outlets of Des Moines, and other undeveloped land.   

Any future development by Facebook within 20-year period will also be covered under the terms of the development agreement.

Mark reportedly noted that the proposed project will rank Facebook as the second-highest revenue-generating business in Altoona. Any other expansion project of data center will make it the first-highest.

Source credit: https://www.desmoinesregister.com/story/news/local/altoona/2019/05/06/facebook-invest-400-m-fifth-altoona-data-center-building/1118518001/

https://www.datacenterdynamics.com/news/facebook-confirms-fifth-data-center-altoona-iowa/