By R.J. Morales TX3DNews
Plano, TX – While much of Monday night’s attention focused on Plano’s agreement with DART, the City Council also approved a major economic development package tied to a $1.35 billion investment by AT&T Services, Inc. The two agreements, listed as Items H and I on the consent agenda, were taken up separately and passed unanimously, 8–0.
Item (h) approved an Economic Development Incentive Agreement between the City of Plano and AT&T Services, Inc., authorizing a development grant and giving the city manager authority to execute the necessary documents. Item (i) approved a separate Economic Development Incentive Agreement for a tax rebate covering calendar years 2030 through 2054.
Under the terms approved, AT&T must invest approximately $1.35 billion in site improvements and bring 10,000 full‑time employees to Plano. In return, the city authorized a $10 million development grant, a $10 million job‑based grant, waivers of certain development‑related fees, and a 25‑year property tax abatement running from 2030 through 2054. During public comment, the long‑term abatement was described as exceeding $100 million over its lifespan.
Performance-Based Agreement
Before the vote, Deputy City Manager Doug McDonald told the council that Economic Development Director Mac Attali was available to answer questions about the agreement.
Attali stated that the city structures its economic development agreements so that companies receive payments only after meeting specific performance metrics.
“All of our economic development agreements are performance-based,” Attali said. “The company has to meet certain metrics in order to be paid out for those incentives.”
Council Member Maria Tu asked for clarification on how the job incentives would function and whether they were tied to employment growth in Plano.
“My understanding is that the incentives that we offer for corporations regarding job increases, it’s really not just a blanket check,” Tu said. “Everything is connected to the jobs and employment that they’re able to increase in the City of Plano.”
Attali confirmed that the incentives are linked to defined employment and investment benchmarks. The job-based grant is tied to a 10,000-employee threshold, which Plano Resident, Corey Reinacher later noted amounts to roughly $1,000 per employee based on the $10 million allocation.
The council then approved Item (h) on an 8–0 vote, followed by Item (i), the tax rebate agreement, which also passed 8–0.
Public Questions Raised
The AT&T item included one public speaker before the vote. Corey Reinacher addressed the council and acknowledged the scale of the proposed investment.
“AT&T is a Fortune 500 company with a market capitalization of over $200 billion. Securing a major corporate relocation is a significant achievement,” Reinacher said. “But that’s exactly why this deal deserves careful scrutiny.”
Reinacher noted that the $10 million development grant represents less than three‑quarters of one percent of the required $1.35 billion capital investment.
“Is that level of subsidy truly influencing their decision, or are we subsidizing investments that the company would make anyway?” he asked.
He also questioned whether the employment incentive would result in new economic activity within the city.
“At $1,000 per employee, are we meaningfully inducing new economic activity or just paying to move jobs across city lines?”
Reinacher raised concerns about the 25‑year tax abatement component.
“The proposed 25‑year tax abatement, valued at over $100 million, raises serious equity concerns,” he said. “Is it appropriate to commit that level of long‑term taxpayer subsidy to a corporation worth billions?”
He added, “This is a substantial public investment with lasting consequences,” and asked, “If these incentives were not offered, would AT&T choose another location? What measurable return will Plano taxpayers receive?”
Reinacher also questioned whether it is equitable to grant one large corporation fee waivers while smaller businesses pay the full cost.
No additional public speakers addressed the AT&T item.
Agreement Terms
Under the approved agreements, AT&T must meet defined investment and employment benchmarks before receiving incentive payments. Staff stated during the meeting that payouts are tied to those performance metrics.
The tax rebate agreement approved under Item (i) applies specifically to calendar years 2030 through 2054.
During public comment, Reinacher questioned whether the 10,000‑employee requirement would represent net‑new hires or relocation of existing regional employees. That distinction was not further addressed during council discussion before the vote.
Both AT&T‑related items were approved 8–0, concluding the council’s consideration of the incentive package.