After listening to multiple hours worth of public comment and presentations, the Michigan City Common Council passed four resolutions related to a potential data center in the area.
“We all have received (your concerns), and they do not fall on deaf ears,” said President Tracie Tillman, D-5th. “We have to make a sound decision in order for us to make the right vote, and that is based on all the data information … that we receive from our research, from information shared.”
Council members heard more than an hour of public comment from residents both for and against the creation of a data center.
Those in favor of the data center believe it will help with job creation and keep Michigan City competitive. Those against expressed concerns with the potential data center’s water and electric usage, proximity to schools, and health and environmental impacts.
The majority of Tuesday night’s speakers spoke against the data center.
“I can’t understand why you’re pushing this forward at the speed that you are,” said Ashley Williams, Michigan City resident and executive director of Just Transition Northwest Indiana. “How can you do this when you’re hearing so many folks in this room saying, ‘This is an injustice. I cannot live with this in my backyard’?”
Tillman was one of the majority votes on four data center-related resolutions Tuesday night. Councilwoman Nancy Moldenhauer, D-6th, and Councilman Joseph Nelson, D-3rd, consistently voted against each resolution.
Councilman Donald Przybylinski, D-at large, voted in the majority of most resolutions, except one that would grant Phoenix Michigan City Investors LLC tax abatements for the property expected to be used for the data center.
“My biggest concerns are with the developers not getting to these union people and getting them hired,” Przybylinski said before his vote. “I understand you can’t hire everybody and every union … but we need a better attempt at getting to these folks, getting them to the table and making a positive impact.”
Other resolutions passed include another granting a tax abatement; one designating the area as an economic revitalization area; and another approving 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 it’s ultimately built.
A Phoenix Investors presentation said Michigan City is an ideal location for a data center because reusing an empty facility allows for a sustainable approach, its proximity to a NIPSCO substation, the available capacity for water supply and sanitary discharge, a low latency for users, it’s disaster-safe, and it has site-specific designs and a skilled workforce.
The presentation also said the final economic impact for the city would be $26.1 million, and the city would feel about $6.6 million in the first 90 days.
Chris Johnson, Michigan City Water Works Director, said the city has “more than enough” capacity left to supply water for a data center. Rick Calinski, director of economic development and public affairs for NIPSCO, said the utility will not raise customers’ electric rates to power the data center.
Before the votes, Councilwoman Daisy Lee, D-2nd, proposed to table resolutions related to tax abatements and the taxpayer agreement for “Project Maize” for two weeks. The motions to table were not approved, with the council divided 4-5.
Lee ultimately voted in favor of each resolution, saying before the vote that she believes the data center project will benefit Michigan City in the end.
“I would never vote for something that would be harmful to the children in our community or our community (in general),” Lee said to residents. “I guarantee you that all of you have been heard. I’ve spoken directly to a lot of you … and your concerns have been heard.”
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.
The $800 million capital investment would come with “limited job creation and no assurances of community reinvestment or substantial tax impact,” Nelson Deuitch’s statement said.
No formal agreement was reached at the time, the statement said, and it did not present binding commitments to ensure lasting benefits to Michigan City residents.
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“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,” Nelson Deuitch said in her statement.
Multiple city council members said Tuesday night that they continue to advocate for the community and will push for the project to help residents, including by hiring union workers to construct the data center. Operators of the data center have not said they will hire union workers for the facility.
Multiple residents in support of the data center said they have begun to help with work at the facility, including Larry Levandowski, who is general manager for La Porte County Project Management.
Levandowski was asked to help with preliminary work about four weeks ago, he said, and they started with two people working at the facility but are now up to seven. He believes the data center will help Michigan City grow once it’s complete.
“It’s hard to watch towns grow,” he said. “This is an up-and-coming thing. Data centers are building up all across the United States. Watch this build the city and bring something great.”
Joe Schultz, director of operations at Meyer Glass and Mirror, also spoke in support of the data center on Tuesday. His business has been contracted to help with windows and glass at the site, Schultz said.
“I’ve worked on different projects in Michigan City, and I’m very honored to be part of this project,” he said.
Although some residents are excited about what economic development a data center could bring, others are worried about the environmental impacts, especially for vulnerable age groups, including children.
Debra Shore, Michigan City resident and former regional administrator for EPA Region 5, said she’s concerned about noise, light pollution, long-term health effects for people and wildlife, traffic and utility costs.
“Right now, you have considerable leverage to ensure that measures to mitigate and improve the data center can be made, and I implore you to do so,” Shore said.
Shore wants council members to ensure that noise and lighting at the site will not impact people and wildlife nearby. She also said that if upgrades are needed to provide water at the site, it should be in writing that Michigan City residents won’t face utility bill increases.
“You have the opportunity to make this project a national model for good design and community investment,” Shore said to council members. “Finally, I ask what is the harm in deferring action tonight until you have answers to the questions asked by me and others and have commitments to address them?”
Amy Losinski is another Michigan City resident who spoke against the data center resolutions.
Losinski told council members that the data center process should’ve been more transparent for the public. She believes the city had multiple closed-door meetings about the data center, and Losinski said that silenced the public’s voice.
“This took away the largest fighting chance from the residents,” Losinski said. “It stole our voices, so I urge you to vote no to take a stand on ethics and bring that back to our city.”