It sounds like the company wants two things, a city that will use their system and be the 'showcase site' to help them sell other systems, and a sweetner to the move of their company to Richardson which is probably combined with large tax incentives that weren't mentioned in the story. If things work out right, it could be a win-win for both the city and company.
Please note that "Free" doesn't indicate "No cost", as stated in the article "The city would, however, still have to buy quite a bit of equipment from other vendors, including the radios themselves."
This also sounds a bit like sour grapes though since they're currently in Frisco and didn't like that Frisco went with Motorola for their P-25 system and now the company wants to move from Frisco to Richardson. "the company's decision to offer both the radio system and offices was in part a response to Frisco's decision last spring to grant its radio communications contract to Motorola rather than EADS". They also appear to be giving the same deal to others as well so they may be using both the carrot and the stick with these deals.