Michigan City council tables data center resolutions
The Michigan City Common Council held a marathon meeting Monday night, with multiple resolutions on the table related to a potential data center in the community. Comments including concerns with water and electric usage, proximity to schools and health, and environmental impacts.
'You're facing a decision that could reshape the future of Michigan City for generations,' said Ashley Williams, Michigan City resident and executive director of Just Transition Northwest Indiana. 'I urge you to table … every subsequent resolution with Phoenix indefinitely and give this community an honest and transparent process. For God's sake, it is what they deserve.'
Williams also asked council members if the investment is worth sacrificing their health and that of their neighbors, and if the project is worth sacrificing the city's future.
Multiple residents claimed the city council wasn't transparent about when they would be discussing the data center plans.
Council members asked questions about all resolutions considered and heard public comment.
Councilwoman Nancy Moldenhauer, D-6th, said she wants to look at how a data center might impact noise and pollution in the area, specifically from diesel-powered generators.
Moldenhauer would also like to see minimal environmental impact from any facility that's built in the community, she said during Monday's meeting.
'I ran on the promise to my community that I'm standing for health, well-being and quality of life for all people, not just the people living in Ward 6, but for every single resident of Michigan City,' Moldenhauer said. 'My commitment is to make sure everyone is safe and not being harmed by this. Anything we can do to go through these various layers of concern, I think would be beneficial to us.'
All resolutions were tabled until the first meeting of September after motions by Councilman Vidya Kora, D-at large. Tabling resolutions would allow residents to ask more questions and get the answers they're seeking, he said.
'As a matter of fact, I want to do some research myself on the health effects of it,' Kora said. 'I understand the concerns that have been expressed, but at the same time, if we don't move forward with new technologies and bringing new opportunities, then we'll fall behind as a community. … If we take a little more time, and try to understand the effects of it, that's a reasonable thing.'
Data centers proposals have garnered a mixed reception across Northwest Indiana — with projects going forward in LaPorte and Merrillville and getting rejected at the intial pitch stage in Burns Harbor, Chesterton and Valparaiso.
One resolution — which was adopted June 3 — was on the table for public hearing Monday night. The resolution would designate a portion of the city as a Cooper Economic Revitalization area, according to the council's agenda.
Other resolutions would grant Phoenix Michigan City Investors LLC tax abatements for the property, confirm the area as an economic revitalization area and approve a taxpayer agreement for 'Project Maize,' also known as a data center that would be located at 402 Royal Road.
The current address is owned by Phoenix Investors, a Milwaukee-based company that deals in acquiring, developing, renovating and repositioning industrial facilities nationwide, according to its website.
It is unclear who would operate the data center if the project is ultimately approved.
In a July 14 statement, Michigan City Mayor Angie Nelson Deuitch said city government officials were made aware of a potential data center development. Nelson Deuitch's administration and council members entered into non-disclosure agreements to review the concept in a confidential executive session.
Nelson Deuitch's statement said the $800 million capital investment would come with 'limited job creation and no assurances of community reinvestment or substantial tax impact.'
No formal agreement was reached at the time, Nelson Deuitch's statement said, and did not present binding commitments to ensure lasting benefits to Michigan City residents.
'No formal proposal regarding local incentives has been brought to the City Council for consideration, and at this time, there are no plans to pursue the project,' Nelson Deuitch said in her statement. 'Michigan City welcomes innovation and responsible investment, but our administration will always advocate for economic growth that is equitable, transparent and in the public interest.'
Michigan City resident Paul Przybylinski shared his concerns with the data center, saying he has issues with language that would allow for 40 years of tax abatements.
'How much, in the end, is this going to be negative to the city?' Przybylinski asked during Monday's meeting. 'They already have tax credits from the state, but at the end of the 40 years, how much money are we going to be out?'
Przybylinski is also concerned with the cost of the project, saying the number has only continued to increase.
'You are elected to represent us, and there needs to be transparency,' Przybylinski said to council members. 'There's been no transparency with this whole operation. … I am blaming the city council president for not making this more public.'
State Rep. Pat Boy, D-Michigan City, spoke at Monday's meeting, asking how many employees will be hired, how city residents will benefit from the facility, how much water will be used, and how much electricity bills might increase because of the facility.
'I hope someone can address (my questions) sooner rather than later,' Boy said.
Resolutions regarding the data center will be discussed again at the Michigan City council's first September meeting.
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Williams also asked council members if the investment is worth sacrificing their health and that of their neighbors, and if the project is worth sacrificing the city's future. Multiple residents claimed the city council wasn't transparent about when they would be discussing the data center plans. Council members asked questions about all resolutions considered and heard public comment. Councilwoman Nancy Moldenhauer, D-6th, said she wants to look at how a data center might impact noise and pollution in the area, specifically from diesel-powered generators. Moldenhauer would also like to see minimal environmental impact from any facility that's built in the community, she said during Monday's meeting. 'I ran on the promise to my community that I'm standing for health, well-being and quality of life for all people, not just the people living in Ward 6, but for every single resident of Michigan City,' Moldenhauer said. 'My commitment is to make sure everyone is safe and not being harmed by this. Anything we can do to go through these various layers of concern, I think would be beneficial to us.' All resolutions were tabled until the first meeting of September after motions by Councilman Vidya Kora, D-at large. Tabling resolutions would allow residents to ask more questions and get the answers they're seeking, he said. 'As a matter of fact, I want to do some research myself on the health effects of it,' Kora said. 'I understand the concerns that have been expressed, but at the same time, if we don't move forward with new technologies and bringing new opportunities, then we'll fall behind as a community. … If we take a little more time, and try to understand the effects of it, that's a reasonable thing.' 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