Michigan City’s spending plan for data center revenues drew some criticism from the public during Tuesday’s city council meeting. In exchange for a tax abatement, Phoenix Investors agreed to pay the city $5.5 million when the first building is done, plus $500,000 a year for the following 39 years.
Under a proposed resolution, $2.5 million dollars would go to the police and fire departments, while $500,000 would be used to help residents struggling to pay their water and sewer bills. The rest would go into the city’s rainy day fund.
Council President Tracie Tillman says she put together the proposal, after meeting with the mayor and other local officials. “Of course, we know the detriment that we had this past winter with the high water bills, disconnect notices, the utility bills and disconnect notices,” Tillman said.
This comes as Michigan City is also looking to increase its sewer rate for the first time in 12 years.
But resident Amy Losinski worried that the city was in too big a hurry to spend the data center money. "All I heard was we needed this money to help with our budget expenses and deficits that we will face down the line," Losinski told council members. "However, here you are spending this money as soon as it reaches your hands, which I think is financially irresponsible."
Others suggested using the money specifically to help neighborhoods impacted by the data center development. Council member Nancy Moldenhauer said her constituents have been through almost a year of stress and abuse because of the construction.
“You bought property in an area that was quiet, that was green, that was a haven. It was a wonderful place to make an investment, and it’s been turned into something that nobody should have to put up with,” Moldenhauer said.
She encouraged residents to continue sending her their ideas.
In the end, council members voted to table the resolution indefinitely, while discussions continue. In any case, Tillman said more details about the spending plan would have to be outlined in a future ordinance.
