Tax abatements are available only for real property located within a designated reinvestment zone, so a data center outside such a zone is ineligible for this incentive. (Section 4.01)

A new data-center project must include at least $50 million in qualified real-property improvements; an existing-business expansion must include at least $25 million in additional real or personal property. (Section 4.04)

An existing business seeking expansion incentives must have operated in Ellis County for at least two years, and the expansion must substantially increase productive capacity, operational scope, or employment rather than merely replace or maintain existing facilities. (Section 4.06)

Construction must begin within 18 months after execution of the economic development agreement and be completed within four years, unless the Commissioners Court grants an extension for good cause; quarterly progress reports are required during construction. (Section 4.04)

Projects must comply with building codes, zoning and development standards, obtain all required environmental permits and approvals before construction, and maintain the property in good condition. (Section 4.04)

A project regulated as a large-load customer under Texas Utilities Code Section 37.0561 must provide the County with an ERCOT commitment letter and evidence of site control. (Section 4.04)

The project must be supported by the applicable municipality, particularly through local economic incentives or an economic development agreement. (Section 6.03)

Every economic-development incentive application requires a public hearing before final action, with newspaper notice published at least seven days beforehand; the Commissioners Court retains authority to approve, deny, or modify the application. (Sections 7.02–7.03)

Applicants must pay a nonrefundable $1,000 application fee before review, unless the Commissioners Court waives it. (Section 6.02)

The County may require a Professional Services Agreement and an initial $10,000 escrow deposit for outside review services; additional $5,000 deposits may be required within 10 business days when costs exceed the initial deposit. Failure to pay can suspend or terminate review, and deposits are nonrefundable except for possible credits of remaining funds. (Section 7.01)

Complete applications generally require up to 90 days for processing, and final action is generally taken within 60 days after the public hearing, subject to extensions for complex applications or additional information. (Sections 6.01 and 7.03)

Recipients must submit detailed annual compliance reports by March 31 throughout the incentive period, including employment, payroll, investment, operations, maintenance, and ownership information. (Section 8.01)

The County may conduct site inspections, audits, and reviews of employment, financial, investment, and operational records; reasonable audit costs and, when authorized by the agreement, onsite inspection fees may be charged to the recipient. (Sections 8.01–8.02)

Abated property must remain adequately insured, be maintained in good condition, and continue to be used for the purposes stated in the economic development agreement throughout the abatement period. (Section 4.04)

Uncured noncompliance can result in recapture of abated taxes and other incentives, including interest and agreement-specified penalties, as well as liens, civil lawsuits, or termination of the agreement. (Section 8.03)

An economic development agreement cannot be assigned or transferred without prior written approval from the Commissioners Court; the proposed assignee must demonstrate financial and business qualifications and assume the agreement's obligations. (Section 7.05)

Ellis County may grant a tax abatement of up to 50% of the increased assessed value of qualifying real-property improvements for up to seven years, and up to 50% of eligible tangible personal property for up to five years. The abatement applies only to qualifying property in a designated reinvestment zone. up to 50% of the increased assessed value

New data-center facilities can qualify for incentives if they make at least $50 million in qualified real-property improvements. Existing-business expansions can qualify with at least $25 million in additional real or personal property investment; real-property improvements may receive abatements for up to 10 years and tangible personal property for up to five years. New facility projects must include qualified investment of at least fifty million dollars

The County may participate in municipal or other eligible TIRZs, contributing a portion of incremental property-tax revenue to fund public improvements such as infrastructure, utilities, transportation improvements, and community facilities that support development. public improvements to be funded through tax increment financing

The County may structure a tax-abatement agreement as a payment-in-lieu-of-taxes incentive on a case-by-case basis, subject to the policy's requirements. may request that the tax abatement agreement be structured by using a PILOT incentive

For projects in municipal reinvestment zones, the County may streamline review by accepting qualifying municipal engineering, environmental, and site-plan reviews and relying on municipal due diligence regarding applicant qualifications, feasibility, and financial capacity. may accept municipal technical reviews

Complete incentive applications are generally to be reviewed and processed within 90 days, and County staff must conduct an initial completeness review within 15 days. These timelines are subject to extensions by agreement or the need for additional information. processed within ninety (90) days

Applicants may receive extensions of the construction deadlines for good cause: construction ordinarily must begin within 18 months after execution of the economic-development agreement and improvements must be completed within four years, but the Commissioners Court may extend those periods. unless extended by the Commissioners Court for good cause

Existing economic-development agreements remain effective under their stated terms until expiration or termination, and early termination of a reinvestment zone may not impair existing contractual obligations. This protects approved data-center incentives from being undone solely by a later zone termination or policy change. such termination does not impair existing contractual obligations

Ellis County will consider a tax abatement agreement for Databank Datacenters DFW III LLC under Chapter 312 of the Texas Tax Code, for proposed data-center improvements on an approximately 288.8-acre tract in Red Oak. The proposed improvements have a projected capital investment of approximately $2.663 million.