Hermantown Google Data Center Proposal Draws Criticism Over Tax Abatement, Development Terms
A reader's view criticizes Google's proposed data center in Hermantown, Minnesota, stating that the development agreement and tax abatement terms are overly favorable to Google and lack adequate protections for the community. Concerns include insufficient penalties for contract breaches, vague job targets, and potential environmental risks. The author argues the current proposal is financially irresponsible for Hermantown.
Allison Hafften of Proctor submitted a reader's view to the Duluth News Tribune, expressing significant concerns about Google's proposed data center in Hermantown, Minnesota. Hafften argues that the current development agreement and a 20-year tax abatement for Google are too favorable to the tech giant and do not adequately protect the community.
The agreements are criticized for lacking explicit penalties and enforcement mechanisms should Google breach terms related to noise, water usage, job targets, or environmental contamination. Conversely, Hermantown could face financial penalties for undisclosed amounts. Hafften highlights the lack of guarantees for local or union labor for the 2,000 construction jobs and the limited five-year requirement for permanent jobs.
The author also points out that a 7% abatement of the allowed 10% cap for 20 years is financially irresponsible and could hinder Hermantown's ability to attract other businesses. Comparatively, other data center developers like Microsoft and Oppidan are reportedly declining abatements and covering infrastructure costs themselves. Missing terms in the current agreements include groundwater protections, compensation for road damage, decommissioning, property-value impairment, utility extension operating costs, mitigation of pre-existing site contamination, and sunset clauses for NDAs. Hafften concludes that the current proposal creates an inequitable power imbalance and is designed to exploit, rather than support, Hermantown.