WAXAHACHIE – A requested tax abatement guideline change involving Weston Holladay LLC’s data center project in Red Oak’s Reinvestment Zone was unsuccessful last week at Ellis County Commissioners Court.
The Commissioners voted unanimously to respect the current county tax abatement guidelines in place.
County Commissioner Randy Stinson, pct. 1, represents the precinct where the data center would be located in Ellis County said, “We would love for you to come here, but as far as going outside what our abatement diagrams are now that we set, that is my contention. I would love to see us stay with what we have.”
Weston Holladay LLC representatives and Red Oak city staff have attended a number of commissioner court meetings discussing the requested tax abatement changes which would allow them to utilize an automatic application of the tax abatement for future phases of the Weston Holladay project.
Ellis County Judge John Wray said that was where the concern had been expressed from various parties.
Wray pointed out, “I do not get any sense that data centers or Weston Holliday are not welcome in our county.”
He explained future abatements were not out of the question but would have to be qualified later.
County Commissioner Kyle Butler, pct. 4, agreed that data centers are welcome in Ellis County, but “the abatement guidelines set for the county work for us.”
Stinson had opened the conversation prior to the vote had pointed out, “We set through a couple of months to get through the abatement program and we were all in agreement to what we agreed to.
“We definitely are not trying to run data centers out of Ellis County.
“They are a benefit. To the degree of benefit, I will state our tax rate is one of the lowest around this area as far as being able to abate.
“When we do abate, we are looking at about half of what everybody else is with exception of maybe one or two that are a little further north or east.
“With that said, 50% of abatement of what our tax rate is as compared to a tax rate that is twice what our tax rate is puts it equal status or the point we are actually giving more.
“The county does have needs as far as what we do to maintain our roads. The city of Red Oak says they are taking all the roads in or working off state roads, but at the same time all roads lead to where you are going. “I have roads that come out of that area like a spider and going back toward Ferris that will be affected. I have roads that are affected by the data centers there now and Ferris and I have had conversations about that and we work it as it comes along. But it is a cost to us.”
Following the commissioner’s comments, Stinson made the motion to adhere to the current abatement guidelines with County Commissioner Louis Ponder. pct. 3, seconding the motion that led to the failure of Weston Holliday’s tax abatement exception on future data center phases.