By rssfeeds-admin “The agreement reached with the City of Indianapolis and Google ensures that fair property tax revenues flows to our schools,” reads a statement from Superintendent Chase Huotari. “This means this project strengthens school funding and those dollars benefit students and teachers.”
City-County Councilor Michael-Paul Hart told FOX59/CBS4 that there is no deal between Google and the city regarding tax revenues and abatements until and unless the Council approves the rezoning of the land at its meeting next Monday night and then debates financial incentives and tax breaks.
”It was really disappointing, really disheartening to know that what I know is that the Indy Economic Development and Google went and sat down with them and had a conversation and essentially they came up with a figure that worked for the school,” said Hart. “I don’t know what that dollar amount is, but I know it to be true that they did accept that if the proposal goes through, and if it is rezoned, that Google made a commitment to the school in some financial capacity for them to show public support.”
On Aug. 4, Huotari sent out a statement that read, “We cannot support this project as currently presented due to the significant tax abatements and the creation of a Tax Increment Financing (TIF) district being requested. These incentives would divert critical property tax revenues away from our schools.
“If this development were pursued without the abatement and TIF measures, Franklin Township Community School Corporation would fully support the project.”
Hart said the status of the anticipated tax abatement package hasn’t changed since early August, only the promises made to the school district.
”The school corporation’s massively hit. They rely on property taxes to fund their operational funds. That’s how they’re paying teachers, bus drivers, janitors and all those folks, and by having abatements and TIF and all that, that takes away from the pool of money that goes to property taxes and they’re absolutely at a disadvantage,” he said. ”If this property is developed in a way that doesn’t have the tax abatements on it, you’re looking at hundreds of millions of dollars in property or county option income taxes. With this type of development, it cuts down to a million bucks and when that gets cut down to the schools it tens of thousands of dollars, so what they’re getting, it won’t compare to what it could be.”
Hart said rezoning approval, coupled with tax abatements and avoidance, would mean Google would qualify for hundreds of millions of dollars in uncollected taxes for decades to come.
“They have the options for up to 50 years on electrical, no taxes on their utilities for AES for 50 years, 100% abated. No tax on equipment, no sales tax on equipment, so anything they buy to build, anything that goes inside of that facility, they’re not paying sales tax on. They’re probably not buying it in Indiana anyway. The other piece is personal property tax, so when the business is operating and they’ve got all that equipment inside, we charge property tax on that. Forty years, 100% abatement is what they’re allowed up to. Then 10 years property tax abatement on the land and the building abated at 50 percent.”
Hart said if the abatements were approved, Google’s tax on the project would essentially max out at one million dollars a year.
Mayor Joe Hogsett told FOX59/CBS4 that his office takes no official position on the rezoning of the property for Google’s purposes, a decision he said is left up to the Metropolitan Development Commission and the Council.
“It’s not lost on me that this could bring a lot of money into our community. It’s projected to be a $1.5 billion investment as I understand it,” said Hogsett. ” It’s well known that data centers are cropping up everywhere, particularly with the advent of artificial intelligence, and other technological advancements, but I’m glad that there has been a robust conversation about this. I’m glad that people have been heard and we’ll see what the council decides to do next week.”
Neighbors have complained about the impact of the massive center on their neighborhood and fears of escalating water and electricity costs.
The council will hold a public hearing on the zoning change Monday night and take a vote immediately afterwards on whether to approve the project.
Hart said he has enough councilor votes to defeat the rezoning.
”We need fifteen to be successful and currently there are seventeen who have publicly said that they oppose the development, so we’ve got to hold the line, they’ve gotta stay committed and not let things like this jade their opinion.”
Hart said the neighbors and councilors aren’t opposed to all data center development in Marion County, just this one.
”We’re not against data centers. It’s got to be the shoe’s gotta fit, and this shoe just doesn’t fit. You’re putting these giant IKEA-sized buildings right in the middle of residential. They’re going through all these abatements. You’re not providing any jobs to the community. The shoe doesn’t fit. There’s other areas that make a lot more sense to provide what they’re gonna bring. This just isn’t the spot for it.”
A lawyer for the developer and the school superintendent did not return requests for comment.
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