Reno Mayor Hillary Schieve applauded Apple's decision to build in downtown Reno, noting the company helped spur a rapid expansion of technology companies in Northern Nevada.īrekhus, an outspoken opponent of tax abatements, disagreed. Tessera developers now hope to develop an "innovation district" that is home to technology and research companies that want to be close to the University of Nevada, Reno. Partner Steve Polikalas said that vision has changed after the recession. The Tessera developers originally planned a $350 million mixed-use development that would includes hotels, retail shops and office buildings. Rather than a nondescript warehouse, they want it to advertise that Apple is a downtown business. Usually Apple does not put signage on "high security buildings," but Foulkes said the company will make an exception for the downtown warehouse to appease the Reno City Council.Ĭouncil members hope the Apple warehouse will spur additional development in the downtrodden corner of downtown known as the Tessera District. "We think it will be the most beautiful building in that corridor," he said. By moving the computer equipment needed for the data center through that warehouse, it will be able to chip another 1.5 percent off its sales tax rate.įoulkes said Apple plans to spend $4 million on the warehouse. How Apple's Reno warehouse became eligible for a tourism tax breakīecause of a quirk in state law, the state can abate all but 2 percent of the sales tax rate paid by Apple on the computer equipment needed for its data center.Īs part of Wednesday's deal, however, Apple will build a warehouse on land in downtown Reno that's part of a tourism improvement district created in 2009.
The value of those abatements will increase with the expansion of the data center. Apple's original $1 billion data center was awarded $89 million in state property and sales tax abatements in 2012.
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