The Allen Economic Development Corporation (AEDC) and Frontier Communications® (NASDAQ:FTR), one of the nation’s largest rural local exchange carriers, have announced an agreement to open a regional headquarters and back office operation at the Allen Office Center building, located at 805 South Central Expressway in Allen, Texas. The company has committed to leasing approximately 84,000-square feet of office space for 10 years and creating 600-800 jobs in Allen, making it the second largest employer in this suburban city just north of Dallas. The company plans to commence operations at the facility in August of this year.
Since acquiring a significant portfolio of assets from Verizon in 2010, Frontier Communications assessed its office locations across North America, looking for consolidation and efficiency improvement opportunities. Company officials conducted an exhaustive site search that included other Texas cities, such as Waco, McAllen and Longview. The company also considered office sites in other states, including Tennessee and South Carolina, but ultimately chose Allen for its workforce and family-friendly business climate.
“We are very pleased to create jobs and increase our community’s taxable value, particularly in a challenging economic climate,” said Tim Wood, President of the AEDC. “This project occurred in large part because of the concerted efforts of the AEDC to showcase Allen’s highly-skilled and abundant workforce. Frontier Communications will help strengthen our property and retail sales tax base and increase daytime employment, which lessens the tax burden on Allen homeowners.”
Of the 600-800 employment positions at the new facility, at least 300-400 will be newly created positions recruited to the State of Texas. The Office of the Governor, Economic Development and Tourism Division, directly assisted the company in relocating to Texas with key state incentive programs, including the Texas Enterprise Zone Program and the Skills Development Fund. These incentives proved very attractive to the company.
Mayor Steve Terrell played a critical role in the company’s decision to come to Allen, having hosted Frontier Communications officials during their initial visit to Allen, and by providing strong political support for project. During his early years on the Allen City Council, he spearheaded the creation of the Enterprise Business Park where the Allen Office Center is located. The investment of AEDC funds to construct infrastructure in this business park attracted many high-tech businesses, including Mustang Technology, Jack Henry & Associates and also Experian, a company that recently renewed its lease and spent over $12 million on improvements to its facilities.
“Frontier Communications made the right decision in coming to Allen,” Terrell said. “They will find that our workforce, school district and city services are among the best in Texas. They’ll benefit greatly, and so will we.”
About Allen Economic Development Corporation (AEDC)
In 1992, the citizens of Allen passed a city-wide half-cent sales tax in support of an economic development corporation. Since its inception, the Allen Economic Development Corporation (AEDC) has been charged with facilitating company relocations and assisting the expansion of existing businesses, which creates jobs and additional tax revenue to the community. Since 1992, the AEDC has recruited over seventy new businesses and industries to Allen that have contributed to increasing Allen’s total ad valorem tax base from $729 million in 1992 to over $8 billion in 2010.
The AEDC board of directors, appointed by the City Council, governs the corporation’s operations. These individuals represent a diverse spectrum of interests and expertise which is invaluable to making prudent decisions with regard to the quality of Allen’s economic development.