Port Washington aldermen are reviewing a proposed development agreement for the massive data center development planned by Denver-based
Vantage Data Centers. The Common Council is scheduled to vote on the agreement during its next meeting, Aug. 19.
The agreement would be the next step in a development process that began last year when city officials were approached by developers interested in building a data center on a 1,900-acre site adjacent to I-43 near Lake Drive.
The deal would provide a structure for near-term tax revenue, major infrastructure improvements and long-term revenue for the city. The agreement includes:
- Vantage Data Centers’ plans to develop two data center projects in Port Washington, consisting of four data centers on the south side of the site. Any future development north of Lake Drive would require additional evaluation.
- A near-term tax revenue boost would be provided for the city based on the assessed value of the land that Vantage is purchasing for the project. An estimated land value of $120 million would provide approximately $650,000 per year in new tax revenue to the city beginning in 2027. The Port Washington-Saukville School District, Ozaukee County and Milwaukee Area Technical College also would benefit from new tax revenue. The city says city property owners would benefit from tax relief. For example, property taxes on a $350,000 home would decrease by $170 per year assuming a flat city budget.
- About $175 million in infrastructure improvements could move forward in connection with the project, including expanded capacity for water and wastewater treatment facilities, upgraded water mains and sewer lines, power infrastructure and a new water tower.
- Vantage would pay for the upfront costs for the infrastructure investments and be reimbursed over time through a tax incremental financing district. The TID would be funded entirely by new property tax revenue generated by the project, based on its assessed value—projected to grow into the billions over time, the city says.
“This data center project is a once-in-a-generation economic opportunity for Port Washington and all of us as residents,” Port Washington Mayor
Ted Neitzke IV said. “To take the next steps, we need an agreement to provide an overall structure for the project. The top priority for the city is protecting our residents from bearing any costs for the project, and this agreement accomplishes that. It also details the significant tax revenue and infrastructure improvements this project will provide. This project will not disrupt the great things we love about our city, and puts us on a path toward a strong and stable future.”
“As we continue to move forward on the data center project, it is important for us as a Council to keep Port Washington residents informed on the next steps we are considering – and why,” said Common Council president
Dan Benning. “The agreement presented to the Council tonight protects our residents from financial risk and lays out the robust benefits our community will receive from this project. I encourage all of our residents to read the agreement to gain a better understanding of these next steps and how they will benefit all of us.”
“Vantage Data Centers looks forward to being part of the community in Port Washington,” said
Tracye Herrington, vice president, new site development, Vantage Data Centers. “While this development is in the early stages, we appreciate the support of Mayor Ted Neitzke and the many other stakeholders involved to help bring this project to fruition. Not only will this project employ thousands of individuals throughout construction and operations, it will also bring a positive economic impact to the area. In addition, the development will follow Vantage’s sustainable design with careful planning and consideration given to the environment and its surroundings. It will be built with the community in mind, both from a design standpoint as well as preserving local resources such as water, and Vantage will ensure our power use will not affect the grid or the utility rates of other users.”
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