Tulsa City Council Discuss Potential Tax Incentive For New Data Center

The City of Tulsa is close to the next step on tax incentives for a data center development in far East Tulsa, at the intersection of 11th Street and the Creek Turnpike.

The 340-acre site is privately owned but is being marketed for development by the city. Tulsa’s economic development team told City Councilors Wednesday that without the incentive, the still unidentified company would likely build elsewhere.

Spencer Mitchell, the Director of Economic Incentives, told Councilors the company would be required to spend at least $800 million to build a data center and provide $25 million of improvements to sewer, water, and roads to support the project. Mitchell said construction would involve possibly 1,000 people, but long term, the company would directly employ around 50 people at the site.

The City Council has a Tax Incentive District to consider that would waive 85% of excise taxes on the development, while the remaining 15% would be collected as usual. The property tax now is at the agricultural level. City planning documents suggest that even at the lower rate, $36 million could be collected over the 25-year life of the incentive.

“After 25 years, the project will be on the tax rolls, like any other project, and taxes would flow like normal,” said Mitchell.

The City Council will take public comment on the tax incentives at their May 1 meeting.

The development is in the district of City Councilor Christian Bengel, who said he’s been part of the talks about the project.

“This kind of activates a portion of the City where if we didn't do this kind of incentive development might not have occurred,” said Bengel.

Tax districts for the City of Tulsa, Wagoner County, Catoosa Public Schools, Tulsa Tech, and the Rolling Hills Fire District all stand to gain from new taxes but must agree to accept only 15% instead of the full amount for 25 years. Once all the pieces are in place, Mitchell said construction is predicted to take three years.