Hobart Mayor lauds windfall payments for Amazon data center
Hobart, Indiana, is receiving substantial "economic impact payments" from an Amazon data center project, significantly boosting the city's budget and funding infrastructure and homeowner programs. The project, still under construction, faces continued public opposition and a pending air permit application, with the Hobart Plan Commission recently tabling final plat approval for minor revisions.
Hobart, Indiana, is experiencing a significant financial boom due to "economic impact payments" from an Amazon data center project currently under construction. Mayor Josh Huddlestun informed the Post-Tribune that the city has already received $57 million, with an additional $45 million expected by the end of 2026, and further payments totaling approximately $40 million annually through 2029, and $52 million in 2030, when the 723-acre project is slated for completion. Over the next 35 years, Hobart anticipates receiving around $52 million annually, a deal negotiated by the city in exchange for a 35-year personal property tax abatement and a 10-year real property abatement for Amazon. This arrangement, according to Huddlestun, provides a more stable revenue stream than variable tax assessments, with land taxes remaining in place.
The influx of funds, which effectively doubles the city's general fund budget, is being allocated to various community benefits. These include $10,000 matching grants for residential exterior home improvements and $5,000 matching grants for energy efficiency upgrades. The Hobart City Council plans to appropriate $16 million for Festival Park improvements, support nonprofit organizations, and establish a $500,000 revolving loan fund for downtown businesses. Additionally, the funding will address long-standing infrastructure needs such as road repairs, drainage, and sidewalk replacements, and enable the purchase of new emergency vehicles.
Despite the financial benefits, the project faces "continued public opposition" and regulatory hurdles. Amazon, through Ramboll Engineering, filed an air permit application with the Indiana Department of Environmental Management on July 24, detailing plans for 808 fuel storage tanks holding over 5.46 million gallons of diesel fuel and 782 emergency backup diesel generators across two sites, with a combined power capacity of 2,119 megawatts. Separately, the Hobart Plan Commission tabled action on final plat approval until October, requesting minor revisions from Amazon, including a legal description for a new pedestrian walkway right-of-way. City Engineer Alex Metz noted these revisions are minor adjustments to site improvements. Mayor Huddlestun emphasized the city's measured approach to spending this "generational wealth" to ensure broad community benefit and responsible future development.