West Jordan PayPal data center is just 1 step away from being approved

West Jordan PayPal data center is just 1 step away from being approved

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WEST JORDAN — A vacant building in West Jordan is inching ever closer to transforming into a data center for a Fortune 250 tech company.

The building, which used to house a semiconductor manufacturing facility at 3333 W. 9000 South, has sat empty since the facility closed in 2014. Four years later, the city of West Jordan is now in talks to convert the building into a data center for PayPal, an online payment service company founded, in part, by tech magnate Elon Musk.

On Monday, various tax stakeholders unanimously approved the incentive plan to bring PayPal to West Jordan. All that remains now is a public hearing and discussion facilitated by the city’s redevelopment agency to approve the project.

City officials say it’s almost a given that the project will be approved. Then, the city can consider PayPal’s participation agreement.

The city plans to offer the company nearly $7 million in tax rebates over a 10-year period with a promise from the company that they will install $663 million worth of server equipment in the building — a significant capital investment into the community, according to West Jordan economic development director Kent Andersen.

The city also estimates that the data center will increase West Jordan’s commercial tax base by over $123 million — about $6 million of which will go to the Jordan School District — and bring about 20 jobs to the Salt Lake Valley city.

“This project is a good fit for our community because it involves a significant capital investment but does not place a heavy burden on our schools or roads,” said West Jordan Mayor Jim Riding in a news release.

The data center will also finally fill a building that’s been empty for too long, according to Andersen.

“To have a building sit vacant for four years, that's a detriment to a community. So now having an active user in that facility, that’s probably one of the most significant benefits,” Andersen explained.

PayPal’s brand may also attract other big tech companies to the area, he added.

“(The company) puts us more on the map. When tech companies are looking for locations, they like to be co-located with similar Fortune 250, Fortune 500 companies. So that helps us in our business attraction efforts,” Andersen said.

PayPal may even host career days for local schools and offer an internship for students, Anderen said.

Some have questioned whether the nearly $7 million tax incentive is worth it if the data center only plans on bringing 20 jobs to the city. City officials, however, see the low number of jobs as a good thing.

“One of the concerns with projects that bring a lot of people into a community … they also place a burden on the schools and the roads and the infrastructure,” said West Jordan spokeswoman Kim Wells. “This particular project, although it does not bring a lot of jobs, that’s not necessarily the goal. … From our perspective, that’s not necessarily a bad thing.”

The taxing entities who unanimously approved the project include the Utah State Board of Education, Salt Lake County, a representative from the special service districts, Jordan School District and the city of West Jordan. The public hearing on the project is tentatively planned for Jan. 9.

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