City officials are in the process of considering a $113 million tax incentive package for a data center campus near Irvington.
Georgia-based developer DC Blox plans to build a data center campus at the Thunderbird Commerce Center, an industrial park that was once home to a Ford plant. The property is on a brownfield located near South Kitley Avenue and the Pennsy Trail.
Unlike other data centers approved this year, any tax abatements for the DC Blox project will need to be approved by both the City-County Council and the Metropolitan Development Commission. This is because the project is located in a tax increment financing district — a designated area local governments have created to capture new tax growth and then put that money back into future development.
What is in the package?
Indianapolis Economic Development Inc. has crafted the $113 million tax abatement package, which was first introduced at the City-County Council meeting Nov. 2.
Indy Economic Development outlined the package during a virtual meeting Nov. 4. A recording of the meeting can be found on the Indy Economic Development website.
According to Indy Economic Development, DC Blox is anticipated to pay nearly $28 million in taxes during a 10-year abatement period. During that time, Indy Economic Development suggests an abatement would save the company $8.9 million for taxes on the buildings and a $11.6 million in savings on any new equipment. In addition to the tax savings for DC Blox, future tenants are expected to save $92.5 million.
What will the community receive?
The city requires companies that receive abatements to give at least 5% of savings back to the community in what is called a community inclusion plan.
At the meeting, Indy Economic Development shared the inclusion plan payment for DC Blox will be about $28.5 million. Of that, about $5.7 million would go to redevelopment of Washington Square Mall and $2.5 million would go to a workforce development program.
The remaining money would be used for infrastructure projects on the east side. Indy Economic Development said the organization is working with community leaders to identify what those projects would be.
The community is also expected to receive $1.5 million as part of DC Blox’s “Good Neighbor Standards.”
Andrea Richter-Garry, president and CEO of Indy Economic Development, said that payment is a way to mitigate any impact the development will have on the community.
Some examples of what the $1.5 million could fund include a $50,000 donation for public art in Warren Township, enhanced landscaping in the area and money for local education partnerships.
What’s next
The package will be presented to the City-County Council’s Metropolitan and Economic Development Committee at 5:30 p.m. Nov. 9. It’s expected to be introduced to the Metropolitan Development Commission at 1 p.m. Nov. 18, with a public hearing and vote at a later date. Both meetings will be in the Public Assembly Room of the City-County Building, 200 E. Washington St.
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Mirror Indy reporter Darian Benson covers east Indianapolis. Contact her at 317-397-7262 or darian.benson@mirrorindy.org. Follow her on X @HelloImDarian or on Bluesky @darianbenson.bsky.social.
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