Judge throws out lawsuit over Independence data center, sides with city

A judge has dismissed a lawsuit challenging a significant tax incentive package for a proposed data center in Independence, Missouri. The ruling favored the City of Independence against a lawsuit filed by the 'Stop the AI Data Center in Independence' group. The lawsuit, initiated on March 9th, contested a tax incentive plan approved by the city, which grants Medius U.S. a $150.6 billion tax abatement. Rachel Gonzales, leader of the opposition group, expressed disappointment in the judge's decision to deny a referendum but affirmed the group's intent to appeal and continue their efforts to collect signatures to meet the threshold for a public vote. Lisa Reynolds, the interim city manager, stated that the issue was not eligible for a referendum under the Independence City charter. She cited that the ordinance took effect immediately and was related to contracts, which are not subject to referendum petitions. The city had previously denied the group's referendum petition filed the day after the plan's approval. The 'Stop the AI Data Center in Independence' group plans to continue collecting signatures and intends to present them at City Hall, emphasizing public opposition to the project and the tax abatement. Reynolds noted that the annual 30 to 55 million dollars in revenue the city expects from Medius U.S. will be discussed by the community for various needs, including pools, transit, city services, roads, and bridges.