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Gilbert Considers $15M GoDaddy Expansion

By Roland Murphy for Arizona Builder’s Exchange

The Gilbert Town Council met Thursday to consider a development agreement and $836K incentive package for the proposed expansion of GoDaddy’s customer service center on West Obispo Avenue.

The company’s current lease at the facility is for 165KSF. It intends to increase its footprint to more than 180KSF and occupy the entire space. To optimize that expansion, GoDaddy will invest $15M in facility improvements.

According to a report from KJZZ, GoDaddy’s VP of Global Real Estate, Calvin Crowder, estimates the improvements will be complete within two years.

“More than anything, I’m really excited about the interior design and the renovation work of the workspace,” Crowder told the station, which noted other improvements will include energy-efficient cooling systems and LED lighting.

GoDaddy is Gilbert’s largest private employer, and the 1,364 people work at the West Obispo site. The company is required to maintain that number to keep the incentive dollars. The funds are to be spread out evenly over the 10-year lease agreement and will be used to reimburse job training costs. If GoDaddy’s employment at the site drops below 1,364 for two consecutive years, the town will have the option to terminate the agreement. It may also terminate if GoDaddy doesn’t make the $15M capital investment within five years.

In an email to AZBEX, Dan Henderson, Director of Gilbert’s Office of Economic Development, expressed excitement about the agreement. “GoDaddy is one of Gilbert’s largest employers with nearly 1,400 employees at their 180,000-square foot Gilbert facility. We work strategically to support companies like GoDaddy to grow and expand in our community. Gilbert is focused on attracting, expanding, and growing industries with a high concentration of science, technology, engineering and math occupations. GoDaddy is an industry leader renowned for their award-winning customer care, and (we are) delighted GoDaddy has chosen Gilbert as a location to expand their business.”

There is no denying GoDaddy’s positive contributions to town economics. In an analysis Gilbert commissioned from consulting firm Applied Economics, the report found GoDaddy’s “continued and expanded operations… could create an economic impact of $1.53B for Gilbert over the next ten years,” according to the discussion section of the council agenda. “Additionally, the continued GoDaddy operations would directly and indirectly support an estimated 1,788 jobs (including 1,364 direct jobs) and generate $80.5M in annual personal income in the Town.”

While the agreement and incentive package were expected to pass easily, final vote results were not available at press time. Please check for updates.

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