Judge dismisses Port Washington data center lawsuit
An Ozaukee County judge dismissed a lawsuit challenging Port Washington's creation of a tax incremental district (TID) to support a $15 billion data center campus. The lawsuit was filed by Great Lakes Neighbors United, an opposition group, against the city's plan to fund infrastructure improvements for the project developed by Vantage Data Centers, OpenAI, and Oracle. Separately, business groups have filed a lawsuit challenging a voter-approved ordinance that would require voter approval for future TIDs.
An Ozaukee County Circuit Court judge has dismissed a lawsuit challenging development incentives for a $15 billion data center campus in Port Washington, Wisconsin. Great Lakes Neighbors United, a community group, sued the city over its creation of Tax Incremental District (TID) No. 5, which would fund approximately $175 million in infrastructure improvements for the data center project developed by Vantage Data Centers, OpenAI, and Oracle.
Judge Adam Gerol dismissed Great Lakes Neighbors' lawsuit in an oral ruling, a decision that Port Washington officials stated affirmed the city's process for approving the TID. The city clarified that Vantage Data Centers covers infrastructure costs upfront and is reimbursed through the TID, with no taxpayer money other than Vantage involved. Great Lakes Neighbors United, however, expressed continued concerns and plans to pursue further action through additional avenues, including potentially filing complaints with the state Department of Revenue.
Separately, Port Washington voters approved an ordinance requiring voter approval for future TIDs with project costs or a base value of at least $10 million. This ordinance is now facing a legal challenge from business groups who argue it would harm economic development, with the city itself expressing concerns about its legality. Great Lakes Neighbors United has joined this second lawsuit in support of the voter-approved ordinance, with an oral ruling scheduled for October 19.