Plano city leaders gave one of North Texas’ largest corporate projects a formal green light by approving AT&T’s planned $1.35 billion global headquarters campus.
The Plano City Council approved two agreements tied to the project. One provides up to $20 million in grants and fee waivers. The other includes property tax rebates for the new development at 5400 Legacy Drive, the former Electronic Data Systems campus in Plano’s Legacy district. Together, the approvals clear the way for AT&T to move forward with a campus the city says will total at least 2 million square feet and eventually support up to 10,000 jobs.
What Plano Approved
Under Plano’s Chapter 380 incentive agreement, AT&T can receive up to $20 million if it meets a series of construction and employment benchmarks. The largest portion is a $10 million redevelopment grant tied to completing at least $1.35 billion in hard construction costs at the site. The remaining funds are tied to job milestones: $4 million once the campus reaches at least 4,000 full-time jobs, another $4 million when that total increases by 4,000 more, and up to $2 million tied to the final 2,000 jobs above the 8,000 mark. The city also agreed to waive development-related fees through the end of 2030.
That means the phrase “$20 million incentive deal” is accurate, but incomplete. Plano also approved a separate agreement rebating 65% of the city property taxes generated by the new improvements for 25 years, beginning as early as 2029 or as late as 2031, depending on AT&T’s election under the contract. If AT&T later purchases the site during the agreement term, it may also qualify for an additional 10-year extension at a 25% city tax rebate. That second agreement represents a significant share of the overall public commitment and helps explain why the project extends beyond a one-time grant package.
The Size of the Bet
AT&T’s new headquarters is not a routine office move. Under its agreement with the city, the company must build, or cause the construction of, at least 2 million square feet of office, amenity and retail space at 5400 Legacy Drive by the end of 2029, with minimum hard construction costs of $1.35 billion. The company also agreed to occupy the property for a 25-year term once the project begins.
That scale helps explain why Plano structured an incentive package that extends beyond an upfront grant. A campus of this size would reshape a major corporate site in the Legacy district and add another Fortune 500 anchor to the area. For Plano, this is not just a redevelopment project. It is a long-term investment in jobs, commercial activity and the city’s standing as one of the region’s premier corporate hubs.
Why the Job Targets Matter
The most important part of the deal is not the headline investment figure. It is the job schedule tied to the incentives. The agreement requires AT&T to reach at least 4,000 full-time jobs at the property before the first job-related payment is triggered. It then sets a second benchmark of 8,000 by the end of 2034 and allows the final tranche to scale up to 10,000 jobs by the end of 2039.
These are not broad talking points. They are the specific milestones that determine whether the city pays the full amount under the grant agreement. The contract also defines qualifying workers narrowly, excluding independent contractors and employees who primarily work remotely outside the Dallas-Fort Worth metro area.
Why the Structure Matters for Taxpayers
AT&T must complete construction, document qualifying spending, certify compliance, and hit employment thresholds before the various payments are received. On the tax side, the company must submit annual certifications, remain current on city property taxes, and stay in compliance with the agreement to keep receiving the rebate. The grant agreement also includes default and repayment provisions if the company fails to maintain the required obligations after receiving public support.
However, that does not erase the public tradeoff.
Incentives of this kind still return or defer revenue the city otherwise could have collected. Supporters will argue Plano would rather receive part of the tax stream from a transformational redevelopment than none from an aging corporate site. Critics will argue that a company as large as AT&T likely had strong reasons to remain in North Texas regardless. The structure of the deal gives Plano some protection, but it does not eliminate the underlying gamble.
What Residents Could Gain
If AT&T follows through, Plano stands to gain more than a headline-friendly investment total. A project of this size can expand the local tax base over time, support nearby restaurants and retailers, generate construction work, and reinforce the Legacy corridor’s role as a hub for major employers. The city has framed the headquarters as the next chapter for the former EDS campus and as a project that builds on Plano’s long-running appeal to large corporate users.
The secondary effects could also be significant. A large headquarters presence can attract additional suppliers, service firms and future office tenants that want to locate near a major anchor. That kind of clustering is often part of the appeal for cities competing for corporate campuses, especially in fast-growing suburban business districts.
What Residents Should Watch Next
The next real test is not the council vote itself. It is whether AT&T meets the construction and job benchmarks on the timeline set out in the agreements. The city has approved the incentive structure. What will determine whether the deal looks sound five or 10 years from now is execution: how much of the campus is built, how many workers report there, how the tax base grows and whether the surrounding area captures the spillover benefits city leaders expect.
The takeaway is straightforward: Plano approved public incentives to help land AT&T’s new headquarters, but the package extends beyond a simple $20 million grant. It is a long-term commitment tied to a 2 million-square-foot campus, at least $1.35 billion in hard construction costs and up to 10,000 jobs. On paper, that makes it one of the most significant economic development moves the city has made in years. Whether it proves to be a strong return for taxpayers will depend on how fully AT&T delivers on the commitments outlined in the agreements.
