The State Farm tower rises along Hammond Drive in Dunwoody. State Farm was seeking a total of $48.6 million in tax incentives for three office towers, but it withdrew a request for $15 million of that amount that would have helped offset costs of construction of the first tower that’s nearly completed. KENT D. JOHNSON/kdjohnson@ajc.com
Photo: Kent D. Johnson
Photo: Kent D. Johnson

Nearly finished State Farm tower won’t get tax break

State Farm is backing off its pursuit of $15 million in tax incentives for a Dunwoody office tower that’s already almost built.

The insurance company withdrew its request for the tax break amid questions over whether to give a tax discount to a business that has previously committed to its expansion. Tax incentives are usually used to encourage businesses to relocate or expand.

State Farm and its developer, Dallas-based KDC, still plan to seek $34 million in public support for two more office towers planned on the site.

State Farm modified its request for tax incentives after reviewing the timing of the construction of the first tower, said spokesman Justin Tomczak in a statement Monday.

The first office tower is scheduled to open by the end of this year, with 13 stories of office space and eight levels of above-grade parking. The next two towers would be built in the coming years on the 17-acre campus near Perimeter Mall.

In all, the project would house about 7,500 employees with average wages of more than $60,000, according to a fiscal impact study by the Georgia Tech Enterprise Innovation Institute. Most of those employees currently work in existing State Farm buildings.

The Dunwoody Development Authority could consider whether to award tax breaks for the next two buildings at a meeting tentatively planned for late October.

Please read the full story on MyAJC.com.

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