Saline Township reverses vote to limit Oracle's data center tax break
Saline Township Board of Trustees reversed its decision to limit a tax break for Oracle's hyperscale data center, a project partnered with OpenAI. The reversal followed a legal warning that limiting the tax break would violate state law and a prior consent judgment, leading to a new lawsuit and significant financial damages for the township. Community members expressed strong disapproval of the board's decision.
The Saline Township Board of Trustees has reversed its previous decision to limit a tax break for Oracle's hyperscale data center, a project in partnership with OpenAI. The data center's estimated cost has escalated significantly from an initial $4.8 billion to $43 billion. The Board had initially voted unanimously to restrict Oracle's requested 12-year, 50% tax break to the original $4.8 billion valuation, following considerable pushback from community members concerned about the large tax exemption.
However, this decision was overturned only three days later during a special meeting. Attorney David Landry cautioned Board members that limiting the tax break would violate Michigan's Industrial Facilities Exemption Act (Act 198) and a 2025 consent judgment. This judgment had finalized a settlement between Saline Township and Related Digital, the development company responsible for the data center's infrastructure. Related Digital had previously sued the township after its initial denial of a rezoning request for the data center's construction. Landry warned that failure to approve Oracle's original application would result in a new lawsuit against the township for violating the consent judgment and Act 198, leading to significant legal fees and over $1 million in consequential damages due to construction delays.
Despite vocal opposition from the community, including boos and shouts of "shame" from audience members, the Trustees voted to approve the amendment before the public comment period. Yousef Rabhi, a democratic candidate for Ann Arbor mayor and Washtenaw County Commissioner, urged the Board to prioritize its constituents over corporate interests. A GoFundMe campaign, established to support Saline Township's potential legal defense following its initial decision to limit the tax breaks, has raised over $5,000, reflecting ongoing community concern.