The Hobart City Council delivered Amazon to the city on Wednesday night.
Pleas from the dozens of residents who asked city officials to table action fell on deaf ears as the city council approved three resolutions — including a contribution of $47 million to the city by Jan. 31 — allowing Amazon Data Services to proceed with its data center plans at 61st Avenue and Colorado Street.
The tally on all three resolutions was 6-0, with City Councilman John Brezik, D-5th, absent due to his reported involvement in a car accident. The resolutions included one approving real property tax abatement with respect to investments made by Amazon Data Services; another that approved real property tax abatement with respect to investments made by Hobart Owner LLC, and a third measure approving a form of enterprise information technology exemption agreement and community enhancement agreement with Amazon Data Services.
The council, following a two-hour public hearing in which only three people spoke in favor of the project, also approved a resolution confirming a 72-acre parcel at the southeast corner of 61st and Colorado Street as an economic revitalization area where the data center will be built.
“We really hope it was worth it to sell us out,” Hobart resident Albina Villegas said to officials.
Even before the votes were taken, many who packed the Hobart High School auditorium started to leave, jeering the council with shouts of “you don’t listen to people,” “you guys suck” and “they’ll put robots in your positions.”
Joseph Conn, one of four residents who have filed a lawsuit against the city in opposition to the project, voiced outrage that Hobart police at the entrance of the high school had set up tight security, including metal detectors and wands.
“I’ve never seen anything like this spectacle today,” Conn said.
Hobart Assistant Police Chief Nicholas Wardrip wrote in an email that the additional security measures were utilized because the meeting was moved to the school building to accommodate a larger crowd,
“Because it was moved to Hobart High School, we initiated extra security measures due to it being a school with other functions going on and weapons are strictly prohibited from being on school property,” Wardrip said.
Conn and resident Angelita Soriano, a spokeswoman for the No Data Center group, told officials they’d like to see details such as how much revenue the city would receive without the tax abatement versus with the tax abatement.
“Giving up leverage … It’s like laying your cards on the table. If you can’t manage the city, resign,” Conn told Hobart Mayor Josh Huddlestun.
The leverage Conn referred to was the $47 million upfront cash the city is poised to receive from Amazon by Jan. 31, according to the fact sheet presented by Thomas Everett, the attorney representing Amazon.
Everett, who is from the law firm of Barnes and Thornburg out of South Bend, said the estimated total investment of the project is $11 billion.
Everett spoke prior to the vote taken on the three resolutions and presented to city officials a fact sheet summary of the related agreements with the developer.
He said the project will provide an estimated 400-plus jobs averaging $37.44 per hour, in addition to temporary construction jobs.
Other contributions from Amazon to the city, in addition to the $47 million, include $45 million, $43 million and $40 million after achievement of project construction milestones, Everett said.
Those contributions can be used by the city “to improve the quality of life in the city to foster a strong community in which the project is located,” according to the fact sheet.
In addition, Amazon agrees to provide community impact payment to the city up to $2 million per building per year and an additional $10 million payment after issuance of building permit for first building.
Other incentives provided by the city to the developers, include a 10-year, 100 percent real property tax abatement and a 35-year, 100 percent exemption for enterprise information technology equipment.
Also, according to the fact sheet, contractors or subcontractors of any tier working onsite on the project must comply with Hobart Municipal Code, which involved “responsible bidding practices and submission requirements.”
Amazon also made additional commitments including the following: generator testing, commissioning, and emergency generator use; infrastructure improvements, fire training; sustainability; roadway improvements; acoustics; vibration; construction and decommissioning.
There is no commitment by or expectation of the city to use the contributions under the agreements or other city funds to construct water and sewer infrastructures for the project, according to the fact sheet.
Huddlestun, prior to Wednesday’s meeting, called the $47 million upfront cash the city is poised to receive from Amazon “record breaking.”
“Hobart secured the largest publicly known upfront cash payment ever for a private development on private land in the country. The developer (Amazon) will pay $47 million in community enhancement payments. These dollars are not part of the levy and not part of any TIF (Tax Increment Finance) district. They go straight to the city and can be used to serve the whole community,” Huddlestun said.
Because of this agreement, Hobart does not have to raise its income tax and that means the city can fix roads, improve drainage, invest in parks, invest in its youth, and keep public safety departments strong without putting more pressure on residents, he said.
“This really should be celebrated,” he said.
Huddlestun said the cash is crucial to the city as municipalities and other taxing districts prepare for cuts in property tax revenues laid out to Senate Enrolled Act 1.
“Those cuts will significantly reduce revenue for cities across Indiana. We prepared early because we did not want to lay off employees or cut the services you depend on,” he said.