Indy council committee rejects DC Blox data center tax breaks
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A proposed $113 million tax incentive package for a controversial east side data center suffered a major setback Monday after the City-County Council's Metropolitan and Economic Development Committee recommended rejecting it.
The big picture: The decision could shape how Indianapolis weighs tax breaks for data centers approved before its moratorium amid growing concerns about neighborhood impacts.
Driving the news: The committee's vote followed more than two hours of discussion, with residents overwhelmingly urging councilors to reject the incentives and questioning whether the promised economic benefits outweighed the potential costs.
- Councilor Andy Nielsen moved to send the two tax abatement proposals to the full council with do-not-pass recommendations.
- Eleven members supported the motion, while Councilors Michael-Paul Hart and Ron Gibson opposed it.
What they're saying: Hart, the committee's most vocal supporter of the deal, argued the incentives would bring more investment and tax revenue to the east side. He said the project would generate nearly $59 million in taxes and community investments over 10 years.
- Nielsen countered that residents in his district had made their opposition clear over the past eight months, adding that the developer's presentation Monday night was "clear as mud" and speculative.
- "In this moment, I think about the Irvington small businesses who had their biggest day on Halloween," Nielsen said. "The hardworking small business owners who toil away are members of our community who show up when the going gets tough. I don't see their break."
Context: Atlanta-based developer DC Blox wants to invest roughly $1.8 billion in two data center buildings at Thunderbird Commerce Center, the former Ford Visteon manufacturing site near South Kitley Avenue and the Pennsy Trail.
- The proposed incentive package includes $28.5 million in community inclusion payments and another $1.5 million for Good Neighbor Standards.
- Potential investments include $5.7 million for Washington Square Mall redevelopment, at least $2.5 million for workforce development and roughly $20 million for east-side infrastructure, parks and other community improvements.
- The site is already zoned for industrial use, and the Metropolitan Development Commission (MDC) approved the project's use variance in July despite strong community opposition.
- The MDC unanimously approved a moratorium on new data center developments through 2027 in August.
Plus: DC Blox pledges to use local union workers. Construction could employ up to 600 workers at peak, though the company estimates just 21 permanent jobs once the campus is operational.
State of play: The proposal has drawn months of organized neighborhood opposition, with residents raising concerns about diesel generator emissions, noise, resource consumption and the relatively small number of permanent jobs.
- Residents also raised concerns about potential utility rate increases and the site's proximity to Irvington Community Elementary School.
The other side: DC Blox representatives defended the package as a way to secure the project's second building and guarantee community benefits.
- The company has tweaked its proposal in response to feedback, including reducing the original three-building pitch to two buildings, removing 25 backup generators and increasing the setback from the Pennsy Trail.
What's next: The full City-County Council is slated to vote Dec. 7.
- Because the site is within the Irvington-Brookville tax increment financing district, the abatements would also require Metropolitan Development Commission approval.