3 big offices opening in 2017 near Legacy West—and their economic footprint

Toyota Motor North America is set to open its 2.1-million-square-foot campus in mid-2017 and bring 4,000 employees to Plano.

Toyota Motor North America is set to open its 2.1-million-square-foot campus in mid-2017 and bring 4,000 employees to Plano.

As three headquarters and corporate offices prepare to open this year, Plano officials expect the projects to add nearly $1 billion to the city’s tax rolls and have a broader effect on the local economy.


The three projects—including headquarters for Toyota Motor North America and corporate offices for Liberty Mutual Insurance and JPMorgan Chase & Co.—are expected to open later this year and create a total of $925 million in new taxable value at their respective sites, according to city documents. This estimate does not include a broader economic ripple effect that is expected to include additional construction, product and service sales, travel, retail, hotel and dining activities.


“What’s hard to quantify is the multiplier effect,” Plano Mayor Harry LaRosiliere said. “So the person who now works here in Legacy West goes to lunch three times a week and spends their lunch money in Plano. … Statistically, they’re going to spend a good portion of their income within a radius of where they work. You really can’t track that.”


The city also expects these three companies to bring about 14,000 employees to the southwest corner of SH 121 and the Dallas North Tollway on a daily basis. Over the next three years, about 30,000 employees are expected to work in the corridor, including employees from FedEx Office and Print Services, which opened its headquarters in 2015, and retail and dining stores at Legacy West, a $3.2 billion mixed-use development, LaRosiliere said.


Sometime this summer, NTT Data is also expected to bring about 600 employees to the corridor with the move of its North American headquarters to One Legacy West, a 14-story office building.


PLN-2017-01-1-2


Toyota has gained the most attention with its North America headquarters, a development whose “scale and scope” prompted officials to hire an external consultant to evaluate the project’s broader ripple effect on the city’s economy, Plano’s Economic Development Director Sally Bane said in an email.


The study concluded Toyota would produce roughly $7.2 billion in economic output over the next 10 years. This total represents the value of production—such as sales or gross margin—and includes the company’s estimated ripple effect on the broader Plano economy.


Officials also consider Liberty Mutual and JPMorgan Chase to be important developments, but due to their smaller sizes and employment projections, the city did not commission broader economic studies as it did for Toyota, Bane said.



Incentives to build


The city of Plano’s economic incentives to these companies included nearly $17 million in grants and tens of millions more in tax exemptions over the next decade, assuming steady tax rates and appraisal values.


Toyota received a grant of approximately $6.7 million from the city. In return, the company is constructing a new 2.1-million-square-foot headquarters building and adding about 4,000 employees to Plano by the time the campus opens in mid-2017.


Liberty Mutual, which is expected to open in the fourth quarter of 2017, received a $5.2 million grant in return for constructing a 1-million-square-foot office building and adding more than 4,000 jobs by the end of 2020.


A $4.9 million grant was given to JPMorgan Chase, which will open in late 2017. To receive the grant, JPMorgan Chase is building a 1-million-square-foot campus and adding at least 4,800 jobs to Plano by the end of 2020.


The companies also received tax abatements, in which the company receives a 50 percent tax exemption for 10 years from the city of Plano in exchange for land improvements, according to city documents.



Plano’s broader pitch


LaRosiliere said the city’s selling point is more than the economic incentives it has to offer.


“Most companies have certain things that are important [to them], and it’s pretty consistent: safety, good schools, good infrastructure and mobility, and quality of life,” he said.


Companies relocating to Plano have also cited the benefits of consolidating their operations. The Toyota headquarters, for instance, were previously split between three corporate offices in California, Kentucky and New York.


“[The city of Plano] will continue to aggressively attract businesses that will add value to our community because that’s how we prosper,” LaRosiliere said. “By investing in our people [and] our community, we diversify our tenant base.”


This story is one update from The January Issue. View the full list of 6 things to look for in 2017 here.

SHARE THIS STORY
By Cassidy Ritter

Cassidy graduated from the University of Kansas in 2016 with a degree in Journalism and a double minor in business and global studies. She has worked as a reporter and editor for publications in Kansas, Colorado and Australia. She was hired as senior reporter for Community Impact Newspaper's Plano edition in August 2016. Less than a year later, she took the role of editor for the McKinney edition.


MOST RECENT

A camp hosted by Outcry Theatre is one of dozens of spring and summer camps offered in Plano this year. (Courtesy Outcry Theatre)
31 activities for kids: A list of spring and summer camps in Plano

A noncomprehensive list of spring and summer camps for children in Plano.

Eliseo Figueroa opened Lima Taverna in 2017 across from the former Macy’s location at Collin Creek Mall in Plano. (Daniel Houston/Community Impact Newspaper)
Owner of Plano's Lima Taverna restaurant shares love for Peruvian cuisine, culture

The restaurant serves dishes ranging from marinated fish served with Peruvian sides to a stir-fry made with beef tenderloin.

Level III ballet students take part in stretches during class. Before reaching Level IV, students must master technical skills and prove their physical and mental focus, according to the academy's syllabus. (Liesbeth Powers/Community Impact Newspaper)
'The art of ballet': Couple runs Plano studio with focus on performance

Hathaway Academy of Ballet is all about the fundamentals and principles of ballet technique, according to Kirt Hathaway, who runs the studio with his wife, Linda.

Market data: Plano home prices rise in December in all but one ZIP code

See the latest Plano housing market statistics in this infographic.

A new Plano police substation will be completed this spring at the southwest corner of McDermott Road and Robinson Road. (Liesbeth Powers/Community Impact Newspaper)
Plano police, fire gear up to prepare for growth in changing northwest Plano

Plano police and fire departments have improved their response times in recent years even as they handle a rising number of calls from a growing city population.

The Shops at Willow Bend is continuing with a $125 million expansion project that includes the mall's now-open restaurant district. (Daniel Houston/Community Impact Newspaper)
Developer stays course in Willow Bend mall expansion following prominent departures, late payment

The owner behind a multimillion-dollar project to expand Plano’s only remaining indoor shopping mall is looking to extend and restructure its financing as it prepares for a new stage of office and residential construction.

The district has lost roughly 1,900 students in the last four years, according to a presentation at a  Feb. 18 work session, and the trend is expected to continue. (Gavin Pugh/Community Impact Newspaper)
Plano ISD enrollment expected to continue dropping in next decade

Enrollment at Plano ISD is expected to continue to decline in the next decade, according to a report from a Feb. 18 work session.

A proposed construction project at Williams High School may cost roughly $14 million and be financed via remaining funds from Plano ISD’s 2016 bond. Members of the Plano ISD board of trustees were given a tour of Williams High School at a work session Sept. 17. (Liesbeth Powers/Community Impact Newspaper)
Plano ISD focuses on possible $14 million project for Williams High School

A proposed construction project at Williams High School may cost roughly $14 million and be financed via remaining funds from Plano ISD’s 2016 bond.

Texas Central officials announced interior plans Feb. 17 for the company's proposed high-speed train connecting Houston and Dallas. The Shinkansen trains in Japan will be customized for Texas with no middle seats and additional legroom, company officials announced. (Courtesy Texas Central)
JUST IN: Texas Central gives first glimpse of high-speed train car interior

Texas Central officials announced interior plans Feb. 17 for the company's proposed high-speed train connecting Houston and Dallas.

A mural showcasing the events of 9/11 has been hand-painted in the bay area of Fire Station 8. (Courtesy Plano Fire-Rescue)
9/11 mural completed at Plano firestation

A mural showcasing the events of 9/11 began being hand-painted in the bay area of Fire Station 8 in mid-January.

Forever 21 closed Dec. 30 at The Shops at Willow Bend. (Courtesy Adobe Stock)
Plano Forever 21 closes as part of company closures

Forever 21 closed Dec. 30 at The Shops at Willow Bend, 6121 W. Park Blvd., Plano.

Back to top