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SALT LAKE CITY — The Utah State Board of Education held off taking a position Friday on $240 million in tax incentives intended to entice Facebook to construct a large data center in West Jordan.
The State School Board has one seat on the eight-member Taxing Entity Committee, made of up government and water districts that levy taxes on the 1,000-plus acre parcel that West Jordan wants to designate as an economic development project where the data center could be located.
The Taxing Entity Committee is scheduled to vote on the plan on Aug. 22. Other committee members include two representatives of West Jordan, two of the Jordan School Board, one for all other taxing entities, and two for Salt Lake County.
County officials have expressed their opposition to the incentive package while West Jordan officials back the plan.
Salt Lake County Council Chairman Richard Snelgrove addressed the State School Board during the public comment portion of its Friday meeting, describing the plan as "corporate welfare for a very rich company" and a "sweetheart deal."
"We're all for economic development, but we're not for economic development at any cost," Snelgrove said.
The State School Board voted to wait until the Jordan School Board votes on the plan, which would return to Facebook much of the new tax revenue generated by its part of the site for 25 years. The local school board is expected to meet next week.
As taxing entities weigh the costs and benefits of the West Jordan plan, Facebook is also considering a competing site in Los Lunas, New Mexico.
The New Mexico plan has the backing of the state's congressional delegation, attorney general and several environmental groups. The state's largest utility, the Public Service Company of New Mexico, has signed a "special service contract" with Facebook, according to the Albuquerque Journal.
State School Board member Jennifer Johnson said she did not want to give the board's support of the plan because it was unclear whether the offer was in its final form.
The board discussed a proposal in which the board would take the same position as the Jordan School Board, but the motion died amid concerns that course may hamper the school district's bargaining position and that the local district's interests may be different from that of the statewide school board.
West Jordan City Manager Mark Palesh told the State School Board there is great urgency to move the matter along given that Facebook has a competing offer.
"If the decision isn't made in two weeks, they're going to go to their alternate and then we lose on this," Palesh said.
