SAN FRANCISCO, April 22, 2011 (AFP) – Twitter on Friday said it has inked a deal to move into a new nest in a chronically downtrodden part of downtown San Francisco that local officials are eager to rehabilitate.

“Happy to say that Twitter is staying in San Francisco,” spokesman Ali Rowghani said in a message fired off at the popular microblogging service.

“We’ve signed a lease to move our HQ to the Central Market area.”

San Francisco leaders recently approved a payroll tax break aimed at keeping Twitter in the city and encouraging the startup, and other technology firms, to roost in a section of downtown that has long resisted economic revitalization.

Companies in what are referred to locally as the Mid Market Street and Tenderloin areas will not have to pay any payroll taxes on new hires for the first six years.

Twitter is undergoing a major growth spurt, with new hires coming on board weekly.

Twitter had talked of moving to another northern California city with no payroll tax, but promised it would settle into a vacant Market Street building if the measure was approved.