The Midlothian City Council approved a tax abatement agreement with Sharaka, LLC at its Monday night meeting. The company is building a new data center in the Railport Business Park.

According to documents from the city, the tax abatement would run for 10 years. Through the agreement, 100 percent of personal property and 85 percent of improvements would be eligible to be abated. Sharaka agreed to an initial capital investment of $500,000 and create 40 jobs in the first phase of the development within five years.

The council also approved to extend the tax increment reinvestment zone at Railport for Sharaka by 375.680 acres.

Railport had previously designated 12 zones to allow the city to offer tax abatements to companies. These companies have included Target, Ennis Business Forms, Toys R Us, and the Buckley Oil Company.

Through a partnership between TXI concrete company and the city created Railport in the 1990's. The infrastructure in the development was funded by the creation of a Tax Increment Reinvestment Zone. The business park is located off Railport Parkway and U.S. Highway 67.