Incentives approved for Fort Wayne data center project
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
The Fort Wayne Common Council on Friday approved tax abatement requests for a Fortune 100 company planning to build a data center campus on the city’s southeast side.
While the name of the company has still not yet been announced, city officials said the project will include an initial capital investment of $845 million and the creation of 30 jobs.
The unnamed company is the parent of Hatchworks LLC, which city officials described as a data processing, data hosting and related services provider that will build the center and is listed on the tax abatement documents.
The council voted 7-0 to approve a 10-year, 50% real property tax abatement on each building that would be constructed on the campus, which could be up to 12 buildings.
Additionally, the council approved a unique, 40-year, 100% personal property tax abatement allowed under state law for “qualified information technology equipment.”
Officials said the new jobs would pay an average salary of $65,000, for a total of nearly $2 million in new payroll.
Several residents spoke in opposition of the project, also known as Project Zodiac, primarily citing concerns over noise pollution, environmental impacts and lack of transparency over the company looking to build the data center.
“It’s my understanding this is already a done deal. So, why can’t we know?” one resident asked.
Councilor Sharon Tucker, who represents the district in which the data center will be built, said she visited a similar facility outside of Fort Wayne and was confident that noise would not be an issue with the new campus.
“Based on what I saw with my own eyes, this is not the monster that many people are fearful that this project is,” Tucker said. “The sound decibels that were there were not the sounds that people are fearful that it is .I know that may not be sexy, or may not be what people want to hear, but I went to seek the truth, and that is the truth that I’m coming back to share with this council body.”
The taxpayer agreement that was approved also comes with conditions for the company to receive the incentives. The company will be required to make an initial investment of $845 million and create no fewer than 30 jobs with an average wage of at least 125% of the Allen County average by the end of 2028, or the incentives will be subject to termination, city officials said.
“Moreover, if in any one year, the job and wage commitments that are described in the taxpayer agreement are not met, the company is not eligible to receive the personal property abatement for that year,” said Tom Trent, an attorney representing the company.
The project was first announced in October for a nearly 900-acre plot of land. Earlier this month, nearly 730 acres of that land were annexed into the city in support of the project.
The $845 million investment would be for the first building on the data center campus. Trent said with additional buildings planned, the investment could grow to between $3-$4 billion.
A timeline for the unveiling of the name of the company behind Project Zodiac was not provided.