Senate approves incentives to lure Google
Posted: Thursday, April 26, 2007
DES MOINES (AP) -- The Senate on Wednesday approved tax incentives aimed at convincing Google to build a center near Council Bluffs.
The bill doesn't mention Google, but its main backer, Sen. Bill Dotzler, D-Waterloo, referred to the Internet company when calling for passage of the measure. Dotzler said the company plans to invest up to $600 million at a center that would employ about 200 people.
"It's a new, exciting expansion," Dotzler said.
Dotzler said the Council Bluffs facility would be built as part of Google's establishment of "server farms" across the country. Server farms will be an integral part of the next generation of computers, connecting them to far more powerful regional servers.
"They are building these huge server farms all over the country," said Dotzler.
The facilities, however, generate an enormous amount of heat and carry huge electrical costs to keep them cool.
The measure approved by the Senate on a 47-2 vote would give the company a tax break on the sales tax from utility bills and a property tax break for the site of the center.
"This bill is going to be the first of many where we address the server issue," said Dotzler.
Barry Schnitt, a spokesman for Mountain View, Calif.-based Google, said the company is looking at sites across the country but doesn't comment on specific locations it is evaluating.
Sen. Brad Zaun, R-Urbandale, supported the tax incentives but complained that lawmakers once again were giving away the farm to a business moving to Iowa without aiding businesses already here.
"We don't do enough for the already existing businesses," said Zahn.
Dotzler said Google will offer the type of jobs that Iowa needs, offering good salaries -- he suggested an average of $50,000 a year -- and moving the state into the technology sector. There's enormous competition for such jobs, he said.
"It's the type of industry they're trying to get all across the United States," Dotzler said.
The House has approved similar tax breaks and the measure now returns to that chamber to deal with minor Senate changes. Approval is expected as the Legislature seeks to polish off its work and end this year's session in the next few days.
The bill doesn't mention Google, but its main backer, Sen. Bill Dotzler, D-Waterloo, referred to the Internet company when calling for passage of the measure. Dotzler said the company plans to invest up to $600 million at a center that would employ about 200 people.
"It's a new, exciting expansion," Dotzler said.
Dotzler said the Council Bluffs facility would be built as part of Google's establishment of "server farms" across the country. Server farms will be an integral part of the next generation of computers, connecting them to far more powerful regional servers.
"They are building these huge server farms all over the country," said Dotzler.
The facilities, however, generate an enormous amount of heat and carry huge electrical costs to keep them cool.
The measure approved by the Senate on a 47-2 vote would give the company a tax break on the sales tax from utility bills and a property tax break for the site of the center.
"This bill is going to be the first of many where we address the server issue," said Dotzler.
Barry Schnitt, a spokesman for Mountain View, Calif.-based Google, said the company is looking at sites across the country but doesn't comment on specific locations it is evaluating.
Sen. Brad Zaun, R-Urbandale, supported the tax incentives but complained that lawmakers once again were giving away the farm to a business moving to Iowa without aiding businesses already here.
"We don't do enough for the already existing businesses," said Zahn.
Dotzler said Google will offer the type of jobs that Iowa needs, offering good salaries -- he suggested an average of $50,000 a year -- and moving the state into the technology sector. There's enormous competition for such jobs, he said.
"It's the type of industry they're trying to get all across the United States," Dotzler said.
The House has approved similar tax breaks and the measure now returns to that chamber to deal with minor Senate changes. Approval is expected as the Legislature seeks to polish off its work and end this year's session in the next few days.
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