On December 10, 1966, IBM unveiled its intentions to build a 200,000 sqft manufacturing plant for the
IBM Selectric typewriter on the land that currently houses The Domain. The plant opened on July 31, 1967 with 500 employees. In July 1989, after three decades of expansion in Austin, IBM announced its intentions to build 1 million sqft of office space east of Burnet Rd on the property now known as
Uptown ATX. By this time IBM occupied 543 acres and had more than 7,000 employees in Austin, the majority of which worked on the
IBM PS/2. In December 1999, IBM sold off 235 acres of land that would eventually become The Domain for US$60 million and leased back more than half of the 2.5 million sqft office space that the property by then had. An additional 70 acres came from Multech (whose land had been purchased from IBM in 1997). Buying the land was Endeavor Real Estate Group with the financial assistance from
Blackstone Group and JER Partners. The initial plan had been to create a campus for the dot-com industry but those plans fell through when the
dot-com bubble burst. In 2003, the Simon Property Group and the Endeavor Real Estate Group entered into a collaborative partnership to develop Phase I of The Domain's retail area. 2004 saw the demolition of Century Oaks Park, a multi-purpose recreational facility for IBM employees and their families, and the start of construction on the initial Domain: Phase I. Additional land for The Domain was reclaimed from vacant IBM manufacturing and administrative buildings, as well as driveways and parking lots that were once part of the original IBM campus. The developers were granted tax subsidies in 2003 from the City of Austin and
Travis County. Total developer compensation is a maximum of a net present value of $25 million. The developer keeps 80 percent of the city's sales tax for the first five years and 50 percent for the next 15 years. Plus, 25 percent of the property tax is rebated back to the developer for the entire 20-year period. The city of Austin expects to take in about $40 million in sales and property taxes over the 20 years of the incentive agreement. ==First phase==