Microsoft, Holmes Murphy seek state incentives
The Iowa Economic Development Authority board will consider state incentives for the $418 million first phase of a Microsoft Corp. regional data center in West Des Moines when it meets Friday.
This will be the third Microsoft data center in West Des Moines since 2010. Earlier this month, West Des Moines approved an application for state development incentives for a regional data center for a company operating behind the name Project Osmium. Sources confirmed last week that Microsoft was the company behind Project Osmium. The IEDA agenda item is the first official confirmation that Microsoft plans another data center in the city.
The West Des Moines City Council vote was to approve an application for a rebate on sales taxes paid during construction of a data center. The Business Record has reported that the center will be constructed on farmland west of Interstate 35 in Warren and Madison counties.
Microsoft is seeking a $4.7 million refund of sales, use and service taxes paid during construction.
West Des Moines has scheduled a news conference immediately following the 9:30 a.m. IEDA board meeting to announce details of the project.
IEDA also will consider development incentives for Holmes Murphy & Associates’ planned move from West Des Moines to an 8-acre site in Waukee’s Kettlestone development area.
According to information accompanying the agenda for Friday’s IEDA board meeting, Holmes Murphy, operating as HMA Group Holdings LLC, plans to lease a build-to-suit, 93,740-square-foot building that will be constructed by Weitz Co. Total project costs are estimated at $8.2 million.
Holmes Murphy is seeking a total of $987,132 in incentives that break down this way: $339,132 investment tax credits and $648,000 in refunds of sales, service or use tax paid during construction.
The Waukee City Council earlier this week approved plats for the office development, which will be located just north of Ashworth Road and west of Grand Prairie Parkway on land that is owned by Knapp Properties Inc. Construction is expected to begin in September.
Waukee recently expanded its package of development incentives to accommodate anticipated growth in Kettlestone and elsewhere in the city. At the same time, the city signed on to what is called the “fair play” agreement, a regional understanding that participating communities will not raid their neighbors for development projects. Waukee joined the agreement in order for the West Des Moines City Council to give its consent to Holmes Murphy’s application for state development incentives.
The IEDA board will consider a $20,000 forgivable loan and five-year, $20,000 no-interest loan for West Des Moines software company ePATHUSA Inc.’s planned move to a new 90,000-square-foot office building that is being developed by R&R Realty in West Des Moines. The incentive package could include $34,545 in tax credits.
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