Rejected once, tax break plan returns for Ferguson data center and Emerson redevelopment
Ferguson City Council members have reintroduced a plan for $1.5 billion in tax incentives for a data center redevelopment at the former Emerson Electric campus, four months after a similar proposal failed. The new plan includes payments for neighborhood beautification and an environmental mitigation fund. Residents continue to voice strong opposition, citing environmental concerns and insufficient community benefits.
After a previous attempt failed, Ferguson City Council members Nick Kasoff and LaMika Covington have reintroduced legislation proposing $1.5 billion in tax incentives for a data center redevelopment on the 217-acre former Emerson Electric campus. The proposal also includes issuing up to $22 billion in industrial revenue bonds. The site is intended to be leased to Next Revolution Technologies, run by James Onder.
Key changes from the prior proposal, which failed in May amid contentious debate, include requiring Onder's LLC to pay $7.5 million over 10 years to the Ferguson Neighborhood Improvement Program for beautification efforts, and $250,000 for an environmental mitigation fund and monitoring equipment. Additionally, $700,000 would be paid to the city for community impact mitigation and emergency services. Despite these additions, residents attending the council meeting universally opposed the plan, criticizing the financial benefits to the city and the sufficiency of environmental protections, particularly regarding water usage with the proposed closed-loop cooling system.
Mayor Adrian Shropshire, who opposed the earlier bill, remains critical, stating the proposal isn't good for the community and that data centers often target underserved areas. He also argued that the city should receive more financial benefits than the nonprofit. The council is expected to vote on the plan later this month, with resident frustration leading to calls for recalls of council members who support the project.