(This story has been updated because an earlier version contained an inaccuracy. Because of a reporter’s error, the original version stated the St. Joseph County Council will vote to approve the proposed Microsoft data center. It does not need to do so. The Tribune regrets the error.)
SOUTH BEND — The St. Joseph County Board of Commissioners and the Redevelopment Commission both approved a Memorandum of Understanding on Tuesday, March 17, that will allow Microsoft to proceed with design of a multi-million-dollar data center in Granger.
But approval came with disapproval from some members of the public who objected to aspects of the project and how local government has presented it to the public.
Bill Schalliol, the executive director of economic development for St. Joseph County, presented the MOU to the Board of Commissioners then ran to the Redevelopment Commission meeting to present it again.
“The MOU specifically relates to pre-development and pre-design services related to utility work that will need to be done, and when I say utility work, I mean water, sewer and roadway infrastructure work that will need to be done to help finalize the site plan for the Microsoft site as well as prepare us for the eventual extension of water and sewer and road improvements to the site and around the project site,” Schalliol said.
The MOU outlines the county’s commitment to evaluating and designing the necessary water, sewer and road projects for utility and water access to the proposed data center site.
“So, what I would tell you is, why today? There’s timing involved, but there’s a lot of information that still has to be gathered,” Schalliol said. “We have to do soil boards. We have to do potholing for utilities. We’ve got to locate a couple of high-pressure gas lines. There’s a lot of prework that has to be done.”
But as one vote bled into the other, frustrated citizens shifted the tone of their qualms from general data center concerns to transparency concerns after the Board of Commissioners moved the meeting up seven hours from 6 p.m. to 11 a.m. — which it didn’t announce until Friday — and the Redevelopment Commission didn’t allow public comment until after its vote.
Janie Jaronik lives less than two miles from the proposed site, she said
“I’m objecting, because everything has been behind doors, secret squirrel meetings,” Jaronik said. “The neighbors, everyone, doesn’t know what’s going on. There are people that live down the street [who] have no idea that a data site is coming. They’re busy with their lives and things haven’t been advertised.”
Jaronik questioned the integrity of the board members.
Despite commitments from Microsoft to put more than $12.5 million in an escrow fund to support all associated expenses, the Redevelopment Commission approved usage of the AM General Economic Development Area to further support the necessary infrastructure projects.
Another concerned resident, Steve Francis, shared his concerns about the AM General Economic Development Area and the purpose behind including a Tax Increment Financing (TIF) district in the MOU. In February, county officials said Microsoft would not seek any tax abatements or exemptions for the project. At the same time, county officials left open the possibility of placing the Microsoft development in a TIF.
“It’ll only lock up all the money that’s created by Microsoft and anybody else who comes to serve that area,” Francis said. “Microsoft’s paying for everything, so there’s no need to serve or build things for them if they’re going to dump money into the escrow.”
“The commissioners, if they vote for the TIF, they’re voting against a tax decrease for beleaguered property owners in St. Joe County who desperately need to see their property tax decline,” Francis said.
As The Tribune previously reported, the proposed Microsoft data center will sit on more than 900-acres of farmland that had been the St. Joe Farm.
Although Schalliol wasn’t able to provide a clear timeline, now that the MOU has been approved, he said the rest of the process should pull together quickly.
“The next step is really to complete some of these engineering studies, to go out and do the survey work in the field to identify some of the utility locations,” Schalliol said.
Now that both boards have voted to approve the MOU, it will go to Microsoft as the final signature to the agreement. The site is zoned, and Microsoft is not seeking any further incentives.
In a follow-up text message, Schalliol clarified that the St. Joseph County Council’s remaining role would be limited to the following:
● Approval of land rezoning if Microsoft seeks to expand the current site
● Approval of a development agreement
● Expansion or designation of a Economic Development Area (TIF district)
● Approval of purchasing any bonds for the project
Email Tribune staff writer Juliane Balog at jbalog@usatodayco.com.
This article originally appeared on South Bend Tribune: St. Joseph boards approve further utilities spending for data center
Reporting by Juliane Balog , South Bend Tribune / South Bend Tribune
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