Dallas Works Memorial - History

Massive data center coming to city (Mesquite News-2008) The city council passed an ordinance on Dec. 15 to prohibit the use of any groundwater that may lie under the property at 3000 Skyline Drive. The resolution changes the property to a Municipal Setting Designation, which makes development of the existing building more economically feasible by limiting the amount of environ- mental upgrades that must be performed before the building can be revitalized. During environmental studies they usually test the water to make sure it is free of toxins and suitable for use by consumers. The ordinance that the council passed by a 6-0 vote classifies the water below the ground at 3000 Skyline tainted, thus eliminating the need to purify the water during development. Tom Palmer, Manager Economic Development for the City of Mesquite, addressed the council and stated that by passing the ordinance it would allow the property to be sold and developed. The funding for the sale was contingent upon approval of the council ordinance. Brad Enloe, vice president of CAPSTAR Real Estate Advisors, addressed the council with the intentions that his company has for the property once purchased. Enloe explained to the council their concept to remodel the existing structure into a data center. Enloe told the members of the council that data centers are highly secure buildings that house expensive equipment that is maintained by highly paid employees. “These are very unique, very technologically advanced facilities,” said Enloe. “They are very costly.” Enloe also explained that they intended to make the facility a multi or single unit development. They would build out a shell for the company or companies to work from. “We have a niche in the data center industry, a specialty in the real estate world, and we were able to identify 3000 Skyline as quite a unique opportunity as a data center,” said Enloe. Enloe also indicated that Lineage would lease the building from CAPSTAR for a few months until they moved into their new facility and then they will redevelop the property. “We think this would be great for the City of Mesquite,” said Enloe. Councilman Dennis Tarpley inquired Enloe for information about what exactly a data center does. “A data center essentially is the housing for mission critical information for businesses and other agencies,” said Enloe. Enloe said that there were 10-12 substantial data centers in the Dallas-Fort Worth area. “This will be among the top 3 or four robust data center in the country of the ones we are aware of,” said Enloe. “We have an agreement with Oncor to expand the substation in the back and this facility will probably have more power than any facility in the country.” Palmer informed the council that along the Union Pacific Railroad are many fiber optic lines that make this building attractive for a data center. “There is probably more fiber along that railroad than anywhere else in the metroplex,” said Palmer. Palmer asked that the council table the proposal to approve tax incentives for the development of the property until the city staff could fine tune parts of the agreement to include a 10-year term. The council unanimously voted to postpone the incentive agreement until the Jan. 5 council meeting.