Project Maize, again
Four data center-related proposals have been approved amidst opposition in Michigan City, Indiana.
On September 2, the Michigan City Common Council approved two resolutions granting Phoenix Michigan City Investors LLC an assessed valuation deduction for two separate buildings.
The other two resolutions pertained to confirming that a certain part of Michigan City would be designated as an “economic revitalization area to which deductions of assessed value may be requested”; and a resolution approving a taxpayer agreement for ‘Project Maize’, which was the only data center project referred to by name.
It is unclear whether all four resolutions pertain to Project Maize; however, Phoenix Michigan City Investors LLC appears to be the developer behind Project Maize, given that, in July of this year, the company issued a response to questions asked at a public workshop for Project Maize.
As reported by the Chicago Tribune, residents expressed concern about the data centers’ potential environmental impact, the effect of the facilities on the character of the neighborhood, and the speed with which the resolutions were being considered.
Some also objected to the NDAs signed between the data center developers and Michigan City, which have protected the anonymity of the proposed projects’ end users.
‘Project Maize,’ which is set to receive $832m in investment, has had a particularly troubled development history. It would be constructed at 402 Royal Road, which is currently home to a defunct windshield wiper factory.
Angie Nelson Deuitch, the Mayor of Michigan City, issued a statement on July 12 stating that the city had no plans to pursue “a potential data center development.
Deuitch had said that “any major project of this magnitude must bring tangible value and benefits to Michigan City residents,” and noted that at the time, “no formal proposal regarding local incentives has been brought to the City Council for consideration, and… there are no plans to pursue the project.”
The project in this case referred to a development with “a capital investment of $800m with limited job creation and no assurances of community reinvestment or substantial tax impact.”
The statement was issued in response to the fact that in the previous month, Project Maize had received approval from the Indiana Economic Development Commission board for exemption from sales tax on the purchase of “qualifying data center equipment and energy.”
This was then followed up by the aforementioned public workshop and Phoenix Michigan City Investors LLC’s response to the questions.
Indiana has received a great deal of attention from various data center operators. Large players like Google, Amazon, and Meta all have a presence in the region, and demand has led the state to project significant growth in peak load capacity.
Source: DCD
