Mason — Officials in this mid-Michigan city have set a September town hall meeting to discuss community concerns about a proposal for a hyperscale data center, as residents learned the process is moving forward and is now under review by the State Boundary Commission.
“To the people of Mason, please do not panic,” Cathy Baird of the volunteer group Mason Data Center Facts told a packed room at City Hall, detailing an annexation process that could take years. “Annexation is simply a request, not something that will definitely happen because a property owner makes a request.”
She made the announcement during a meeting where council members unanimously approved several endeavors, including a September town hall meeting.
Council unanimously approved the new strategies after more than an hour of community members sharing concerns about data centers and criticizing city officials.
Mason officials have not identified the developer interested in building a data center on more than 400 acres west of town, at College and Columbia roads, in Vevay Township, and council meetings have been filled with heated exchanges for several months.
Both community members and city officials have cast doubt on whether a town hall can ease tensions, but for now, a 6:30 to 8:30 p.m. Sept. 14 town hall meeting with council members and city staffers is scheduled to take place at Mason City Hall, 201 W. Ash St.
Officials say town hall attendees can learn more about the background of the data center inquiries, the information available, and the process that would apply if a formal proposal is submitted. Written questions are to be submitted before or during the meeting, and there will be a question-and-answer session.
Some remain skeptical.
“Your goal is not to protect us. It is to usher this (data center) in, because you’re set on having it,” Susan Elliott of the group No Data Centers in Mason told council members. “I find it interesting that you now claim to be for a town hall. I have personally been requesting one since December.
“We don’t need more one-sided or cherry-picked questions (where) you know the answer you want to give. It needs to be a two-way conversation. We don’t need more of this. We need actual transparency.”
The new “Mason Connect” data center strategy announced Monday also will include:
“The purpose of Mason Connect for this topic is not to advocate for or oppose any potential development,” the proposal approved Monday said. “Rather, it is intended to provide factual information, explain the City’s role and responsibilities, and create opportunities for residents to ask questions and better understand the applicable process.”
Alan Greene, a Dykema attorney representing four groups of property owners, wrote in the application that the purpose of the annexation is to “develop and operate a state-of-the-art computer data center” on 405.8 acres west of the city in Vevay Township.
“The development proposed for the Property to be annexed is a world-class hyperscale data center campus (the ‘Project’) representing a capital investment of approximately $1 billion,” Greene wrote. “During construction, each phase is expected to support more than 1,000 workers on-site daily.
“Once operational, each phase is anticipated to employ approximately 30 to 90 personnel, with an additional 100 to 200 third-party employees and service providers, including security, facilities management, food service, maintenance, and other support functions, visiting or working at the site on a daily basis.
“The Project will serve critical digital infrastructure needs while generating substantial long-term economic benefits.”
The owners of the land include Chellison’s Enterprise’s LLC, including members Peter and Michael Hall (3146 and 3388 W. Columbia roads, about 398 acres), Patricia Hall, a trustee for the Hall Family Trust (202 N. College Road, 3.5 acres), Gerald and Cheryl Howe (232 N. College Road, 1.97 acres) and David and Joan Jones (260 N. College Road, 1.97 acres). All requested the State Boundary Commission annex the acreage into the city of Mason.
Vevay Township officials earlier this year rejected proposals for a revenue sharing agreement that could have netted the township about $1 million a year in tax revenue.
Some of the selling points Greene made in his pitch to the commission is the tax revenue benefits for the city, and he noted Mason is facing a $28 million project to replace its wastewater treatment plant and steep drain assessments levied by the county drain commissioner. Mason currently collects about $5.2 million a year in property taxes, and its tax base is 66% single-family homes and 7% tied to the auto industry. The data center is expected to generate between $8.4 million and $12.6 million annually for the city.
He also noted local schools, including Mason Public Schools and the Ingham Intermediate School District, would see a “transformative” impact from an increase in local property taxes.
Greene argued there would be little impact on Vevay Township, which gets about $1,100 annually in taxes from the property on which seven residents live, all of whom are prepared to move.
City officials decry trust issues
After council’s vote, Mayor Russell Whipple talked at length about accusations and criticism he’s been facing.
“I still find it interesting — and it’s unfortunate — and I know it was said a couple of times tonight, how we’re not trusted, we’re deceitful and dishonest,” he said. “I would just ask the same thing I’ve asked multiple times: just please tell us where we’re being dishonest and where we’re being deceitful and what we’re doing or not doing that’s leading you to believe that.
“It just seems really irresponsible to throw these things around without throwing out any evidence.”
City Manager Deborah Stuart expressed similar sentiments.
A possible data center is obviously playing a role in local politics.
No Data Centers in Michigan pushed for the recall of Whipple and Councilwoman Elaine Ferris because they voted to create a now-repealed M-3 technology innovation district that would have established rules for data centers in the city.
Ferris’ recall will be on the November ballot.
Because of an issue with petition language, Ingham County Clerk Barb Byrum quashed a November recall effort for Whipple. Elliott of No Data Centers in Mason said the group’s plan is now to get the mayor’s possible recall on the May ballot.
In the Aug. 4 primary election, there were 10 City Council candidates on the ballot and eight advanced to November. The two lowest vote-getters — Councilman John Vercher, who has spoken in favor of the proposed data center in nearby Vevay Township, and candidate Russell Pokrzewinski — were knocked out of contention,
Greene, the attorney from Dykema Gossett PLLC in Bloomfield Hills, notified city officials in February, weeks before the M-3 zoning district was repealed, that his client, who has not been publicly identified, was “evaluating sites for a potential hyperscale data center development within or near the City of Mason.”
Stuart pinpointed the proposed site in June, the same month Vevay Township officials refused to negotiate a land transfer that could have meant at least $1 million a year for the township for 30 years.
svela@lsj.com
This article originally appeared on The Detroit News: New details emerge about data center planned for mid-Michigan town
Reporting by Susan Vela, Lansing State Journal / The Detroit News
USA TODAY Network via Reuters Connect
By Susan Vela, Lansing State Journal | USA TODAY Network
