Durham courting IBM facility

Offers $750,000 to lure data center

Durham County commissioners will consider a $750,000 incentive package for IBM next week to encourage the company to build a $362 million data center that would create 10 jobs.

The package, which the county staff is recommending, is a key consideration in IBM's decision to build the center in Durham, according to a project description that the county released.

A public hearing on the project will be held 7 p.m. Monday at the commission's meeting; a vote will immediately follow.

The $750,000 incentive would be given to IBM at the beginning of the project. The county expects that the increased tax base created by the data center would generate more than that amount in additional property taxes in seven years.

IBM, based in New York, is the largest private employer in Research Triangle Park with about 11,000 workers at its local campus. The company in recent years has expanded rapidly in the business of providing technology services for corporate customers.

Durham is competing with New York and Colorado for the data center. The project would convert warehouse space on IBM's campus into a customer briefing center with other support services.

The facility could receive the Leadership in Energy and Environmental Design designation, an important quality for both parties because LEED features mean the building would use less energy.

Attempts to reach IBM officials were unsuccessful Wednesday, but the county staff expects that the package will persuade the company to commit to the project.

"We wouldn't be offering the money if we didn't have some sort of indication that they would be working with us," said Deborah Craig-Ray, assistant county manager.

An IBM project that includes 600 jobs was recently announced in Charlotte. Those jobs involve a company division that does back-office work for mortgage lenders. The state awarded the project as much as $9.78 million in incentives over 10 years. IBM has about 1,750 employees in Charlotte.