While local governments are increasingly strapped for cash under Senate Enrolled Act 1, the city of Hobart is swimming in funds as a result of an Amazon data center project still under construction.
Speaking to the Post-Tribune this week, Mayor Josh Huddlestun detailed Hobart’s financial windfall and how the “economic impact payments” are being doled out for the benefit of the local community while beefing up city coffers.
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The city initially received $47 million, with another $10 million arriving last week, according to Huddleston. He expects another $45 million in-hand by the end of 2026, with a $43 million payment scheduled to arrived in 2027. Under the agreement, the city will receive approximately $40 million in both 2028 and 2029 and approximately $52 million in 2030 when the 723-acre project is expected to be completed.
The payments from Amazon effectively double the city’s general fund budget year over year, according to Huddlestun. He said that Hobart will receive approximately $52 million per year over the next 35 years. He explained that the city negotiated a plan for direct payments, thus granting Amazon a 35-year tax abatement on personal property (equipment on site) and a 10-year abatement on real property (buildings).
Huddlestun sees direct payments from Amazon as a better long term deal for the city, explaining that tax assessments and the resulting proceeds can vary over time. He noted that there is no tax abatement on land, describing a “negligible” assessment. Because the development falls within a Tax Increment Financing (TIF) district, any tax proceeds would have been delegated to improvements within that legally defined area, though Indiana has widened the scope of acceptable TIF uses to include public safety.
The data center encompasses a 555-acre parcel located south of 61st Avenue, east of Colorado Street and north of 69th Avenue, known as Hobart Tech Park, which is owned by Amazon Web Services. The other parcel, described as the Ewen Farm property, encompasses 168 acres and is located southeast of 61st and Arizona Street.
The data center facility will have 26 buildings spread out across the two sites, with six at the 61st Avenue location and 20 at the Colorado Street location.
Spending has already started
Hobart homeowners are already realizing the benefits from Amazon’s payments to the city through a new program establishing $10,000 50/50 matching grants for residential exterior home improvements. Another 50/50 matching grant program provides homeowners with $5,000 for energy improvements, such as the purchase of more efficient furnaces and central air conditioning units.
The Hobart City Council will appropriate the funds, including $16 million earmarked for improvements to Festival Park. Huddlestun said the city is making funding available to struggling nonprofit groups and has established a $500,000 revolving loan fund to support improvements for downtown businesses.
Hobart’s general fund will enable long overdue infrastructure projects involving road repairs, mitigating drainage issues and replacing sidewalks, and the city is shopping for a new fire truck and two ambulances.
Huddlestun termed the influx of funding as “generational” wealth, but cautioned that the city will be measured with how the money is spent.
“We want to make sure is that this is beneficial to our city and are trying to touch as many of the community members as we can,” he said. “I think this puts us in position to really soar in the next chapter of Hobart’s life, be able to give back to the community and deliver on good projects while being very selective on about the developments that come into our city. Hobart’s future is drastically positive.”
Hurdles still exist
Continued public opposition to the project aside, one remaining critical issue involves an air permit application, which the Ramboll Engineering firm filed with Indiana Department of Environmental Management on Amazon’s behalf on July 24. According to the permit application, the facility would host 808 fuel storage tanks, storing more than 5.46 million gallons of diesel fuel.
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At the 61st Avenue location, Amazon plans to build 170 emergency backup diesel generators, while 612 emergency backup generators will be installed at the Colorado Street facility. the total power capacity combined for both sites is 2,119 megawatts.
On September 4, the Hobart Plan Commission tabled action until October on final plat approval of the development, requesting that Amazon make minor revisions to requested site improvements.
According to Hobart City Engineer Alex Metz, the revisions include recording a legal description for a dedicated of a right-of-way involving a new pedestrian walkway around of the perimeter of the development, primarily along 61st Avenue and connecting to the local neighborhood.
Jim Masters is a freelance reporter for the Post-Tribune.