Project Cinco reinvestment zone approved by Lytle council

By Anton Riecher
Property expected to be home to the proposed Project Cinco data center was designated a reinvestment zone by the Lytle City Council during a March 26 special meeting, the initial move required in anticipated tax abatement action set for April.
No comments were addressed to the council during the public hearing required before the reinvestment zone vote.
City Administrator Zachary Meadows said establishing the reinvestment zone for the 440-acre site near the Coal Mine neighborhood is required under the Texas Tax Code.
“This is the first step in the request by Rowan Digital for purposes of pursuing an eventual tax abatement under (Section) 312,” he said.
On a motion by District 4 Alderman Michael Rodriguez, seconded by District 2 Alderman Richard Hughes, the council voted 4-0 to approve the reinvestment zone. District 3 Alderman David Emery was absent for the vote.
Meadows suggested that the city council serve as the board of directors for the reinvestment zone.
Project Cinco is described as a “hyperscaler” undertaking – a large scale build-to-suit data center that will provide data storage and Cloud computing services to millions of users. Rowan hopes to break ground on its $500 million facility this summer, bringing nearly 600 construction jobs to the community.
The council voted in January to extend the city extraterritorial jurisdiction to include the Project Cinco property. ETJ refers to an area surrounding the city’s corporate limits where it has powers related to land development and annexation, but not full municipal services.
Plans announced by Rowan call for requesting the city annex the property into the city limits proper.
In December, Medina County commissioners unanimously approved an 80 percent property tax break covering the initial 10 years of Project Cinco. Rowan predicts that the facility will yield a $3.6 billion economic impact on Medina County over 20 years.
It is also expected to yield tens of millions in tax revenue shared by Medina County, the city of Lytle, the Lytle and Natalia school districts and other local authorities. School districts may not enter into abatement agreements.
Action on the actual Lytle tax abatement is scheduled for April 28, Meadows said…LOGIN TO CONTINUE READING AT www.devinenewsmembers.com. You will get INSTANT access to our full E-edition, and begin getting the newspaper delivered to your home next week for $36 a year in Medina County. Support important local city, county, and school news like this!