McClellan Park data center gets state tax credit to create 58 jobs

Backers of a major data center at McClellan Park received $1.2 million in tax credits from a committee of the Governor’s Office of Business and Economic Development, or GO-Biz.

Initial plans call for a 66,000-square-foot center in an existing building on a 9-acre site purchased in the fourth quarter by Sacramento Venture One, said Frank Myers, senior vice president and chief financial officer of McClellan Park. The project is a joint undertaking between McClellan Park and California-based Xtream Data Centers.

Last week, Myers said final approval of the $1.2 million tax credit was a key factor in the project moving forward.

He said future plans call for building a second data center building of 75,000 to 100,000 square feet on the same parcel. He declined to name prospective clients but speculated that a data center campus at McClellan Park would not only increase the regional tax base but lure technology companies to the area.

Preliminary GO-Biz approval was based, in part, on 58 jobs at the site projected over a five-year period.

On Thursday, GO-Biz said the tax credit was part of $46.7 million in tax credits approved by the California Competes Tax Credit committee for 67 companies expanding or creating jobs in California.

Officials projected that the latest round of credits will create 4,235 jobs and generate more than $1.3 billion in investment statewide.

Among local businesses receiving tax incentives, the largest went to Sacramento’s Axis Energy Partners LLC. The commercial LED lighting wholesaler received a $2 million tax credit, which GO-Biz projected will foster a future net increase of 102 full-time positions.

The Axis tax credit was the fifth-largest announced by GO-Biz. The largest, a $10 million credit, went to NextEV USA Inc., a San Jose-based electric vehicle producer. GO-Biz projected future long-term job growth of more than 900 for that company.

“California is now the sixth largest economy in the world in part because companies identify the Golden State as a prime target for relocation and expansion,” Panorea Avdis, GO-Biz director and committee chair, said in a statement.

Gov. Jerry Brown created the California Competes Tax Credit in 2013 in an effort to encourage businesses to stay and grow in California. During this fiscal year, GO-Biz has allocated approximately $160 million to 259 companies that are projected to create over 20,000 jobs and make almost $3.2 billion in investments.

More information on the program can be seen at calcompetes.ca.gov. More details on GO-Biz are at business.ca.gov.

This story was originally published June 17, 2016 at 11:24 AM with the headline "McClellan Park data center gets state tax credit to create 58 jobs."