Google will no longer seek tax breaks for its proposed Hermantown data center, city officials announced Wednesday, following months of community concerns.
The proposal has drawn scrutiny for months. City leaders discussed an agreement in April that would return most of Google’s city property tax payments over 28 years. In return, Google would invest more than $42 million over those 28 years into the Hermantown School District.
A public hearing and vote were scheduled for May 4, but councilors tabled the proposal after hours of public comment.
According to the city, Google is exploring other ways to support Hermantown Community Schools through gifts outside a tax abatement agreement.
“I’m glad Google continues to listen to the needs of our community and region,” Mayor Wayne Boucher said.
City leaders say Google will pay about $3 million in taxes in its first year after construction, more than double Hermantown’s entire commercial industrial tax base combined.
There’s a comment from Stop the Hermantown Data Center…
“Google’s decision to terminate their plan to pursue tax abatement as an aspect of their proposed data center project does not change SHDC’s opposition to this project,” The statement said in part. “Residents are losing their residential sanctuary to an unwanted, inappropriately located, industrial behemoth that has usurped the public process.”
Decisions have yet to be decided…
The project’s special use permit request is scheduled to go before the Planning and Zoning Commission on Oct. 20. The City Council is scheduled to consider the permit and related agreements Oct. 26, following the commission’s recommendation.