An unusual political situation is playing out in Indianapolis over $56 million in tax breaks for a proposed data center.
Indy Economic Development Inc., a group created by Mayor Joe Hogsett to spearhead development, recommended the tax breaks for the $250 million Martindale Brightwood data center. But Megan Vukusich, who as the leader of the city’s Department of Metropolitan Development is a member of the mayor’s cabinet, recently spoke against that idea.
“I am urging the IEDI to withdraw their request today,” Vukusich said at the July 15 meeting of the Metropolitan Development Commission. “If they do not, then I would ask that the commission not vote to move this (tax break) forward.”
IEDI officials have said the project “would not be economically feasible” without local incentives.
Her statement, which came two days after city-county councilors voted to advance a moratorium on data centers, appeared to surprise John Dillon, the commission’s president.
Hogsett, too, did not expect Vukusich to stand in the way of the tax abatements, according to two people familiar with the mayor’s thinking who asked to remain anonymous because they feared political retaliation for speaking publicly.
It’s unclear if IEDI will alter its recommendation based on Vukusich’s position, or vice versa. Andrea Richter-Garry, president of IEDI, did not grant Mirror Indy’s request for an interview through an IEDI spokesperson.
In a statement, Richter-Garry said IEDI is working with the mayor’s office, DMD and the community “to clearly outline and document the long-term community benefits of the Metrobloks data center incentive package.” She said all parties “remain committed to ensuring the incentives deliver the strongest possible benefits to the Martindale Brightwood neighborhood.”
But the rift between city planners and IEDI is the latest indication that Hogsett, who chairs the group’s board of directors, may be losing his grip on power.
Then again, Hogsett spokesperson Emily Kaufmann dismissed the notion there is any disagreement between Vukusich and the mayor.
She said the mayor’s office, DMD and IEDI are working to ensure the developer provides “the highest standard of commitments” to Martindale Brightwood residents. Those pledges may include pedestrian improvements, affordable housing and other infrastructure projects, according to city documents.
“We want to ensure proper commitments are memorialized in the agreement. These commitments are being recommended by DMD & IEDI and will be clearly outlined for MDC’s consideration at an upcoming public hearing,” her statement read, in part.
Changing tides
California-based Metrobloks’ data center gained approval from the Metropolitan Development Commission in April despite overwhelming community opposition. The same commission is now being asked to sign off on the tax abatement package.
“Offering economic incentives at this time is not appropriate,” Vukusich said. “It is vital that we do not rush these decisions and take our time to have all community benefits clearly outlined and documented to ensure that we are getting the best outcome for the residents of Indianapolis.”
The tax abatement is scheduled for a public hearing at the MDC’s Aug. 5 meeting.
Upcoming meeting
Metropolitan Development Commission hearing
🗓️ 1 p.m. Aug. 5
📍 City-County Building, 200 E. Washington St.
Community members will have the opportunity to speak on the Metrobloks tax incentive package proposal.
The pivotal decision comes as city-county councilors have asked the MDC to institute a moratorium on approval of any new data centers. Hogsett has voiced his support for the moratorium, which would not impact projects already in the development pipeline, including the Metrobloks project.
Vukusich’s decision to oppose the tax breaks is the most recent example of the growing tension between the mayor and city leaders.
Earlier this month, the Democrat-led City-County Council voted to pass an increase in vehicle taxes to fund road repairs, despite Hogsett indicating he wouldn’t support the measure. Hogsett vetoed the ordinance, but councilors are working to gather the two votes needed to override the veto.
Meanwhile, one-fifth of the 25-member council has called on Hogsett to resign.
Four councilors — Democrats Jesse Brown, Andy Nielsen and Crista Wells and Republican Josh Bain — called for Hogsett to step down following his handling of sexual misconduct allegations against his former chief of staff, Thomas Cook.
A fifth councilor, Republican Michael-Paul Hart, called for Hogsett’s resignation after a Mirror Indy/IndyStar investigation detailing how Hogsett ignored conflicts of interest involving millions of dollars in city incentives.
Mirror Indy, a nonprofit newsroom, is funded through grants and donations from individuals, foundations and organizations. Sign up for our free newsletters.
Peter Blanchard covers local government. Reach him at 317-605-4836 or peter.blanchard@mirrorindy.org. Follow him on X @peterlblanchard.
Republish our articles for free, online or in print, under a Creative Commons license.
