The leader of the Indianapolis department responsible for economic development deals said the city won’t support major tax breaks for a data center developer looking to build a campus in Martindale Brightwood.
Department of Metropolitan Development Director Megan Vukusich said July 15 that the city would not support a proposal brought forward by the Indianapolis Economic Development Inc. to offer up to $56 million in tax savings to Metrobloks, a Los Angeles developer wanting to build a 13-acre data center. As part of the package, a potential tenant could save up to $339 million based on an estimated more than $7 billion in investment.
Vukusich, who reports to Mayor Joe Hogsett, said she would not support the package, given the Indianapolis City-County Council’s move to put a data center moratorium in place for data centers moving forward. The moratorium doesn’t impact already filed projects such as Metrobloks.
“It is vital that we do not rush to the decision and to take our time to have all community benefits clearly outlined and documented,” Vukusich said.
The package was introduced in a public meeting this afternoon in front of the Metropolitan Development Commission, and a public hearing will take place August 5 to approve or deny the deal.
This seems to be the first major conflict between the city and the IEDI since Hogsett, who chairs the nonprofit entity, created the organization in early 2025 to boost the city’s economic development.
IEDI says Metrobloks would become either the first or second largest taxpayer in Marion County once the abatement periods end, meaning millions in taxes flowing to the city’s general fund even after the incentives. During the abatement, Metrobloks would pay about $900,000 annually on property taxes and $2.2 million afterward.
Metrobloks CEO Ernest Popescu did not comment directly on the city’s position but reiterated his stance that he is committed to building on the 2505 N. Sherman Drive site.
“It was important to me personally, and us collectively as a small company, to be able to give this parcel a second life,” Popescu said.
Appointed commissioners on the Metropolitan Development Commission heard the proposal July 15 and voted 6-1 to move it forward to a public hearing in August. Commission President John Dillon said prior to the Wednesday afternoon meeting that he believed the board needed to at least hear the proposal since that it appeared on the public agenda. The MDC has the power to change the terms of the deal during public hearings.
Vukusich described it as a “bit of an odd” item given that IEDI negotiates, crafts and submits the incentives packages on behalf of the city. The IEDI would have to withdraw the item, given that the city staff had no formal say in the matter on the table.
IndyStar reporting found that city staff struggled internally with how to address the Metrobloks data center, which is in the middle of a predominantly Black neighborhood on the site of a former drive-in theater.
IEDI CEO Andrea Garry-Richter said Wednesday afternoon the organization would move forward with the proposal. As Garry-Richter presented the tax incentives breakdown to the Commission, protestors against another data center on the east side could be heard chanting outside the City-County Building.
Garry-Richter said Martindale Brightwood residents should be at the center of discussions for what community benefits come out of the incentive package. About $22.5 million will go to Brightwood directly during the first decade, plus an additional $10 million after 10 years. It’s unclear who will distribute the funds, but it will not be IEDI or Metrobloks, Garry-Richter said.
In addition, IEDI estimates about $186 million will flow to Indianapolis schools and $16 million will benefit libraries over 30 years.
Alysa Guffey writes business and development stories for IndyStar. Contact her at alysa.guffey@indystar.com.
This article originally appeared on Indianapolis Star: City director won’t support tax breaks for Metrobloks data center
Reporting by Alysa Guffey, Indianapolis Star / Indianapolis Star
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By Alysa Guffey, Indianapolis Star | USA TODAY Network
