Google drops request for tax relief from Hermantown data center proposal
Google has withdrawn its request for tax abatements for a proposed data center in Hermantown, Minnesota, which the city estimates would generate more than $240 million in property taxes over 20 years. The project still faces environmental and legal scrutiny, while the city’s Planning and Zoning Board and City Council are scheduled to consider project approvals and agreements.
Google will no longer seek tax abatement for its proposed Hermantown data center after the incentive package drew public scrutiny. City officials estimate the project could generate more than $240 million in property taxes over 20 years, including nearly $90 million for Hermantown and $120 million for St. Louis County. Google is also considering financial contributions to Hermantown Community Schools.
The project has faced public opposition, lawsuits and demands for additional environmental review since details of the proposal became public. City Administrator John Mulder described the withdrawal of the abatement request as a positive outcome for both the community and Google. The Hermantown Planning and Zoning Board is scheduled to consider Google’s special use permit on Oct. 20, followed by a City Council meeting on Oct. 26 to consider the permit and other project agreements.