Hot Property: Compass Datacenters proposal

  • Article by: DON JACOBSON , Special to the Star Tribune
  • Updated: June 6, 2013 - 11:14 PM
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Photo: Compass Datacenters,

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Southeast quadrant, Hwy. 169 and Canterbury Blvd., Shakopee

Type: Office condominium, data storage

Units: Four

Total building size: Approx. 90,000 square feet

Lot size: 11.3 acres

Developer: Compass Datacenters LLC

Details: A revised proposal from Dallas-based Compass Datacenters to construct a multimillion-dollar data center at the Dean Lakes Business Park in Shakopee got a boost this week when the Scott County Board of Commissioners unanimously signed off on a tax abatement package for the effort.

The commissioners Tuesday gave their consent to an incentive package in which the project — valued at $67 million — would be granted a 50 percent city-county tax rebate on the value of the improvements at the site of up to $349,000 over a period of up to nine years.

The city of Shakopee last month OK’d a revised deal for its portion of the tax breaks after Compass downsized the potential project from five to four reinforced-concrete “pods” of 22,000 square feet each.

A complete build-out of the 11-acre property, now owned by Dean Lakes developer Ryan Cos., would result in 40 to 60 jobs paying an average of $68,000 per year, backers say.

“This is the type of project we’d like to see moving in and helping the city redefine that business park,” Scott County Administrator Gary Shelton told the board. “We’re hoping to bring other commercial entities and businesses into this area — a data center would help attract them.”

Roy Watson, a consultant for Compass, said a potential location for an Upper Midwest data center has been narrowed to the Dean Lakes site and another in Iowa.

“Hopefully we’ll finalize this in two weeks, with a decision no later than July 1,” he told the board.

 

Don Jacobson is a freelance writer in St. Paul. He can be reached at hotproperty.startribune@gmail.com.

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