Allen County

Google "Project Zodiac" — Fort Wayne. $2B+ initial investment, 700+ acres, up to 12 buildings. City Council approved 7-0. $845M initial commitment. Groundbreaking Apr 2024. Phase 1 OPERATIONAL as of Dec 2025 (~200 jobs). Phase 2 expansion: IDEM approved wetland fill permit (2.5 acres) Sep 2025 for 5 additional buildings despite community opposition. Tax: 50% real property abatement for 10 years per building. Citizens Action Coalition tracking ~40 data centers in various stages statewide, including additional proposals in Allen County.

HB 1405 (2019), signed May 5, 2019 by Gov. Eric Holcomb as Public Law 256. Codified at IC 6-1.1-10-44 (property tax exemption for enterprise IT equipment) and IC 6-2.5-15 (sales tax exemption for data center equipment). Created Indiana's data center tax incentive framework: sales tax exemptions on equipment and electricity, plus business personal property tax exemptions for qualifying data centers. Note: IC 6-1.1-12.3 (originally cited in some analyses) has been repealed; the active property tax provision is IC 6-1.1-10-44, as amended by P.L.256-2019, SEC.1.

HB 1405/P.L. 256 exempts: (1) Sales tax on data center equipment purchases — servers, storage, networking, cooling, backup power (IC 6-2.5-15-11); (2) Sales tax on electricity consumed by qualifying data centers; (3) Business personal property tax on enterprise IT equipment (IC 6-1.1-10-44) — duration set by local agreement between designating body and eligible business; (4) Sales tax certificate duration: 25 years (or 50 years if investment >= $750M) per IC 6-2.5-15-14. Qualifying thresholds are population-tiered (IC 6-2.5-15-10): $150M in counties >100K population, $100M in counties 50K-100K, $25M in counties <=50K. Investment must be met by 5th anniversary of certificate.

Google "Project Zodiac" — two bodies voted:

ALLEN COUNTY COMMISSIONERS, 3-0 (Dec 2023, annexation of 728 acres):
YES: Nelson Peters, Richard Beck, Therese Brown.
STILL IN OFFICE: Beck and Brown (both through 2026, neither seeking re-election). NO LONGER SERVING: Nelson Peters — retired Jan 1, 2025; replaced by Ron Turpin. Constituents can still address Beck and Brown at allencounty.in.gov.

FORT WAYNE CITY COUNCIL, 7-0 (Dec 22, 2023, special meeting — tax abatement):
YES: Russ Jehl (R, D2), Tom Didier (R, D3), Geoff Paddock (D, D5), Sharon Tucker (D, D6), Michelle Chambers (D, At-Large), Tom Freistroffer (R, At-Large), Glynn Hines (D, At-Large).
ABSENT: Jason Arp (R, D4), Paul Ensley (R, D1).
STILL IN OFFICE: Jehl, Paddock, Tucker, Chambers, Freistroffer ��� contactable via cityoffortwayne.org.
NO LONGER SERVING: Tom Didier (left 2023), Glynn Hines (left 2023), Jason Arp (left council, ran for mayor 2023). Constituents cannot address these three about their absence/vote in a council setting.

LOCAL ABATEMENTS GRANTED — approved Dec 22, 2023 by Fort Wayne City Council (7-0).

1. 50% REAL PROPERTY TAX ABATEMENT — 10 years, per building (up to 12 buildings).
Site at 5801 Adams Center Road designated as Economic Revitalization Area.
Saves Google more than $55 million in property taxes over the 10-year period.

2. STATE SALES TAX EXEMPTION (IEDC) — 35-year data center sales tax exemption on qualifying equipment and energy.

3. $1 MILLION/YEAR SUPPLEMENTAL PAYMENTS to the community.

Investment commitment: minimum $845 million. Job commitment: minimum 30 full-time.

NOTE: Approved under code name "Project Zodiac" / "Hatchworks, LLC." Google's identity was not publicly confirmed until January 2024. Citizens reviewing the Dec 22, 2023 special session agenda would not have known the company name.

YES — $1 MILLION/YEAR for 25 years (minimum $25M total) via Taxpayer Agreement.

Approved Dec 22, 2023 as part of the tax abatement package. Google is required to pay $1 million annually throughout a 25-year period beginning in 2025.

ADDITIONAL VOLUNTARY CONTRIBUTIONS (not part of formal agreement):
- $1.2 million to ACRES Land Trust (22 acres wetland conservation, St. Joseph River watershed)
- $500,000/year for 5 years to Indiana Community Action Association (INCAA) for low-income Hoosier support
- $1 million to Indiana Office of Energy Development (IOED) for pre-weatherization program
- $260,000+ to East Allen County Schools and Fort Wayne Community Schools for STEM

The Taxpayer Agreement was approved by Fort Wayne City Council. The agreement text may be available through the City of Fort Wayne document portal or via Engage Fort Wayne (engage.cityoffortwayne.org/data-center).

NOTE: Google's $2B data center became operational Dec 2025. Investment increased from initial $845M minimum to $2B actual.

MINIMAL RESTRICTIONS — city discretion over annual payment.

Google's $1M/year Taxpayer Agreement has a simple structure:
- If property taxes fall below $1M in any year, Google pays the difference directly to Fort Wayne via wire transfer
- The city can use these funds "at the city's discretion" — no earmarks
- Payment floor: $1M or $300K per building, whichever is greater
- After 4+ buildings: minimum rises to $1.2M+/year

WHO DECIDES: City of Fort Wayne (mayor + city council). WANE reported the agreement is "very broad — on purpose" to give the city maximum flexibility.

SEPARATE VOLUNTARY CONTRIBUTIONS: Google's additional giving (ACRES Land Trust, INCAA, IOED, schools) is NOT part of the formal agreement and has no enforcement mechanism — Google decides those unilaterally.

Fort Wayne City Council also required Google to pay $200K for stormwater drainage improvement (approved Jan 2026) — a specific infrastructure condition.

YES — money is being spent.

TAXPAYER AGREEMENT: Google's $1M/year minimum began in 2025. First payment was $750,000 (2025), with similar payment expected in 2026. Data center became operational Dec 2025.

CONNECTED NEIGHBORHOODS INITIATIVE: Fort Wayne allocated Google funds (including proceeds from land sale to Google) to this program. Mayor Tucker announced first two neighborhood proposals selected (June 2025). Awards $1M per cycle to two neighborhood groups (2025 and 2027 cycles).

SOUTHEAST PLAN: Google funds and Google TIF eligible for southeast area redevelopment projects.

SPECIFIC INFRASTRUCTURE: City Council required Google to pay $200,000 for stormwater drainage improvement (approved Jan 2026).

VOLUNTARY CONTRIBUTIONS (outside formal agreement):
- $1.2M to ACRES Land Trust (wetland conservation)
- $500K/year for 5 years to INCAA
- $1M to IOED (weatherization)
- $260K+ to local schools (STEM)

Fort Wayne is the most transparent case of actual community spending from data center payments in Indiana.

PROMISED:
- Minimum 30 full-time jobs (original abatement agreement, Dec 2023)
- 200 permanent jobs (revised projection after investment doubled to $2B, Apr 2024)
- 1,000+ construction jobs with local companies (Shambaugh & Son, Hi Tech Electric, Hagerman Group, Brooks Construction)
- Wage levels not specified in abatement agreement but Google data center avg is industry standard (~$100K+/year for tech roles)

DELIVERED (as of Dec 2025):
- Data center OPERATIONAL (confirmed Dec 2025)
- Investment increased from $845M minimum to $2 billion actual
- Specific permanent headcount not publicly disclosed
- Job listings visible on ZipRecruiter and Google careers for Fort Wayne

NOTE: The original abatement promised only 30 jobs for $845M. That's $28 million per job. Even at 200 jobs and $2B, it's $10 million per job.

TAX FOREGONE: $55+ million over 10 years (confirmed by FW Business/WBOI).

BREAKDOWN:
- 50% real property tax abatement saves Google $55M+ over 10 years
- At normal rates on $2B investment, Fort Wayne would collect roughly $11M+/year in property taxes
- With 50% abatement: ~$5.5M/year for 10 years, then full rate after

CEA/PAYMENT: $1M/year x 25 years = $25M minimum from Taxpayer Agreement.
Plus voluntary contributions (~$4M+).

CEA vs FOREGONE: $25M / $55M = CEA covers ~45% of foregone revenue.

POSITIVE: I&M citing data center revenue as reason to LOWER base rates for other customers. Fort Wayne is the only Indiana case where the utility impact may benefit existing ratepayers.

STATE SALES TAX FOREGONE: 35-year IEDC exemption on qualifying equipment at 7% rate. Amount not calculated but significant on $2B+ investment.

Primary authors: Rep. Ed Soliday (R-Valparaiso, HD 4) — still in office as of 2026; Sen. Jim Buck (R-Kokomo, SD 21); Sen. Ed Charbonneau (R-Valparaiso, SD 5); Sen. Travis Holdman (R-Markle, SD 19); Rep. Erin Houchin (R-Salem, HD 47) — now U.S. Representative IN-9; Sen. Mark Messmer (R-Jasper, SD 48); Sen. Lonnie Randolph (D-East Chicago, SD 2) — Lake County. Co-authors: Rep. Earl Harris Sr. (D-East Chicago, HD 2) — Lake County; Rep. Todd Huston (R-Fishers, HD 37); Rep. Carolyn Jackson (D-Hammond, HD 1) — Lake County; Rep. Matthew Lehman (R-Berne, HD 79); Rep. Jim Pressel (R-Rolling Prairie, HD 20) — LaPorte County. Note: 3 of 12 sponsors represent Lake County districts.

House initial passage: 95-1 (Feb 19, 2019). Senate passage: 46-0 (Mar 25, 2019). Conference committee report adopted: House 82-8 (Apr 18, 2019), Senate 44-0 (Apr 18, 2019). Signed by Governor: May 5, 2019. The bill passed with overwhelming bipartisan support in all votes.

Google "Project Zodiac": (1) Allen County Commissioners — voted 3-0 (Dec 2023) to approve annexation of 728 acres. (2) Fort Wayne City Council — voted 7-0 (Dec 22, 2023, special meeting) to approve taxpayer agreement (50% real property abatement for 10 years per building, $845M initial commitment). Phase 2 wetland expansion: IDEM issued permit (Sep 2025) — state agency, no local vote required.

Google "Project Zodiac" — two bodies voted:

ALLEN COUNTY COMMISSIONERS, 3-0 (Dec 2023, annexation of 728 acres):
YES: Nelson Peters, Richard Beck, Therese Brown.
STILL IN OFFICE: Beck and Brown (both through 2026, neither seeking re-election). NO LONGER SERVING: Nelson Peters — retired Jan 1, 2025; replaced by Ron Turpin. Constituents can still address Beck and Brown at allencounty.in.gov.

FORT WAYNE CITY COUNCIL, 7-0 (Dec 22, 2023, special meeting — tax abatement):
YES: Russ Jehl (R, D2), Tom Didier (R, D3), Geoff Paddock (D, D5), Sharon Tucker (D, D6), Michelle Chambers (D, At-Large), Tom Freistroffer (R, At-Large), Glynn Hines (D, At-Large).
ABSENT: Jason Arp (R, D4), Paul Ensley (R, D1).
STILL IN OFFICE: Jehl, Paddock, Tucker, Chambers, Freistroffer ��� contactable via cityoffortwayne.org.
NO LONGER SERVING: Tom Didier (left 2023), Glynn Hines (left 2023), Jason Arp (left council, ran for mayor 2023). Constituents cannot address these three about their absence/vote in a council setting.

Google "Project Zodiac" — Fort Wayne City Council, Dec 22, 2023:
Limited public testimony at the ORIGINAL approval. The Dec 22 meeting was a SPECIAL SESSION — the project was still secret ("unnamed Fortune 100 company"), so public engagement was minimal. Multiple members of the public later said "that kind of closed-door negotiating is unacceptable" (The Local FW).

Sentiment at time of vote: NOT MEANINGFULLY TESTED — the secrecy of Project Zodiac meant residents could not evaluate the proposal before the vote.

SUBSEQUENT public concern has been significant. Fort Wayne City Council President called for public talks (2026). Google created a community website to address concerns (Feb 2026). A public forum was held. Concerns center on diesel backup generators, emissions, and the original lack of transparency.

YES — minutes and recordings available.
Fort Wayne City Council Documents: cityoffortwayne.org/city-council-documents.html
Meeting Recordings: Access Fort Wayne (acpl.viebit.com) — Dec 22, 2023 Special Session recording available. Agenda listed as "Tax abatement for Hatchworks, LLC (Project Zodiac)" and "Taxpayer Agreement for a new Economic Development Project."
City Council meetings also archived on Internet Archive (archive.org/details/councilmeetings).
City Council Facebook page: facebook.com/FWCityCouncilMeetings

NOTE: The Dec 22, 2023 special session was listed under the code name "Project Zodiac" / "Hatchworks, LLC" — not Google. Citizens reviewing minutes from that date would not know the company's identity from the agenda alone.

TWO SEPARATE STATUTES, TWO DIFFERENT ANSWERS:

PROPERTY TAX (IC 6-1.1-10-44): NO clawback mechanism. The statute authorizes a local "designating body" (county or municipality) to enter an agreement granting a property tax exemption. The eligible business must invest $25M+ and pay wages at 125% of county average (Sec. 44(b)(3)-(4)). However, the statute contains NO enforcement, recapture, or penalty provision if these conditions are later unmet. The only protection would be terms negotiated into the local agreement itself — the statute does not require any.

SALES TAX (IC 6-2.5-15): LIMITED enforcement via noncompliance assessment. Section 15 requires an agreement with IEDC including annual reporting of taxes not paid. Section 18 provides: if IEDC determines a company is noncompliant with the agreement or chapter requirements, IEDC notifies the Dept. of Revenue, which MAY impose an assessment up to the total taxes exempted plus interest and penalties. The trigger is failing to meet the "qualified data center" definition (Sec. 10) — i.e., not reaching the investment threshold by the 5th anniversary.

CRITICAL OMISSIONS: Neither statute requires job creation targets, community benefit commitments, water use limits, renewable energy use, or any ongoing performance metrics beyond the initial investment threshold. There are no wage requirements in the sales tax statute. The property tax statute has a 125% county average wage requirement but no mechanism to enforce it after the exemption is granted. The first economic impact study (Sec. 20) is not due until 2030 — 11 years after the law passed.

2026 session reform bills: (1) HB 1210 (Rep. Ed Soliday, R) — PASSED, weakened. Original: data centers pay fair share of electricity costs. Senate version: $5M/year savings to ratepayers. Final (after private meetings with industry): 1% electricity savings, capped at $350K/year. Signed into law. (2) HB 1333 (Rep. Beau Baird, R) — DIED. Would have protected farmland from data center conversion by requiring agricultural zoning protections. (3) HB 1245 (Rep. Matt Pierce, D) — DIED. Would have required IURC to study data center electricity impacts on ratepayers. (4) SB 257 (Sen. Chris Garten, R-Charlestown) — DIED. Would have protected residential ratepayers from bearing data center infrastructure costs. (5) SB 79 (Sen. J.D. Ford, D-Indianapolis) — status unclear. Would require data centers to disclose water and electricity consumption. (6) HB 1043 — Would require DNR water consumption permit for large data centers. 2025 session: HB 1007 — ENACTED. Requires data centers to commit to paying 80% of generation costs for electricity. Pattern: 5 of 6 reform bills in 2026 died. The one that passed (HB 1210) was weakened from $5M/year to $350K/year in closed-door meetings.

No. Indiana does NOT require state-level environmental impact review for data center projects. There is no state EIS/EIR process equivalent to NEPA for private data center construction. Permits required: IDEM air permits for diesel backup generators (Title V or minor source); NPDES water discharge permits; stormwater permits. These are standard industrial permits, not data-center-specific review. Local ordinances are filling the void: Lake County (Aug 2025) adopted a data center ordinance requiring noise limits, setbacks, energy efficiency plans, water management plans, and decommission plans. Kosciusko County (Feb 2025) classified data centers as "exceptional use" requiring special permits. These are LOCAL responses to the absence of state-level requirements.

No. Indiana does NOT require data centers to report water consumption or use renewable energy. No existing statute or regulation mandates either. SB 79 (2026, Sen. J.D. Ford, D) would have required water and electricity consumption disclosure — status unclear/likely died. HB 1043 (2026) would have required a DNR water consumption permit for facilities using large volumes — status unclear/likely died. For context: IU Environmental Resilience Institute reports US data centers consumed 17.4 billion gallons of water in 2023, expected to double by 2028. A single hyperscale campus requires 200+ acres, 100+ MW of power (equivalent to 80,000 homes), and millions of gallons of water annually for cooling. Indiana is projected to need 426 TWh of data center electricity by 2030 — "more electricity than all 6.8 million Hoosier households today" (IU ERI).

UTILITY: Indiana Michigan Power (I&M), AEP subsidiary.

RATE CASE / GRID IMPACT: YES — precedent-setting filings.

1. LARGE LOAD TARIFF SETTLEMENT — filed late 2024, approved by IURC early 2025.
- Requires new large customers (data centers) to make long-term financial commitments proportional to their energy use
- Google/Fort Wayne is the anchor customer
- Custom demand response program with Google to reduce grid strain

2. I&M PROPOSING TO LOWER BASE RATES (Feb 2026).
- I&M announced it will file to REDUCE base electric rates
- Attributed to increased revenue from large customers including Google
- "Customer Benefits Plan" with "Benefits Bank" to stabilize future rates
- Filing expected summer 2026

3. IURC "LARGE LOAD" INTERCONNECTION RULES — approved statewide.
- Indiana regulators approved new rules for large load interconnections
- AEP/I&M was a key stakeholder

NOTABLE: Fort Wayne is the ONLY Indiana data center county where the utility is proposing to LOWER rates as a result of data center revenue. I&M's model (large load tariff + demand response) is being cited as a potential template.

ESTIMATED WATER USE: Unknown — Google has NOT publicly disclosed water consumption.

Journal Gazette headline (2023): "Water use for local data center unknown."

WHAT'S KNOWN:
- Fort Wayne City Utilities: avg daily water use is 37 million gallons
- Water treatment plant capacity: 72 million gallons/day (operating at ~50%)
- Google pledges to replenish 120% of water use across all facilities
- Google funded local water infrastructure projects

COOLING SYSTEM: Evaporative cooling (traditional). Not closed-loop.

PERCENTAGE: Cannot be calculated. Google has not disclosed the data center's specific water consumption. Fort Wayne has capacity headroom (72 MGD capacity vs 37 MGD current use = 35 MGD available), but the data center's draw is unknown.

MIXED — defending original vote while raising new concerns.

CITY COUNCIL PRESIDENT GEOFF PADDOCK (Nov 2025):
"Frankly, I think with what we had, we made the right decision in terms of rezoning and tax abatements. I don't regret that, but we need to sit down and try to figure out how to keep good will and to allay concerns people have about having a number of diesel generators operating at various times."

KEY ISSUE: Council was NOT AWARE that diesel-powered backup generators were part of Google's plan when they approved the project. Paddock called for public talks and sent a letter to IDEM requesting they reject Google's air permit request and work with the city on alternatives.

COUNCILMAN RUSS JEHL (2nd District):
Asked what else Google could do, said "Frankly, everything about it is just not tackling the core issue" regarding whether energy usage becomes a "de facto electric tax."

COUNCIL ACTION: Voted to withhold drainage approval and required Google to pay $200K for stormwater improvements (WANE, Jan 2026). Called "political malpractice" by some for the delay.

FORT WAYNE CITY COUNCIL — voted 7-0 on taxpayer agreement (Dec 2023):

All 9 council members elected Nov 2023 for 4-year terms ending Jan 1, 2028.
NEXT ELECTION: Nov 2027 (primary May 2027).

KEY OFFICIALS:
- GEOFF PADDOCK (District 5, Council President) — term ends Jan 1, 2028
Called for public talks on diesel generators, sent IDEM letter
- RUSS JEHL (District 2, former President) — term ends Jan 1, 2028
Raised "de facto electric tax" concern
- At-large members CHAMBERS and FRIESTROFFER — term ends Jan 1, 2028
Worked with Paddock on Google generator concerns

ALLEN COUNTY COUNCIL (abatement vote, separate body):
- County council members serve 4-year terms, some seats up Nov 2026, others 2028.

NOTE: Fort Wayne is 3+ years from the next council election. The diesel generator issue and drainage vote ($200K) happened mid-term. Voters cannot weigh in until Nov 2027.

FORT WAYNE CITY COUNCIL:
- Schedule: 2nd and 4th Tuesdays of each month, 5:30 PM
- Location: Citizens Square, 200 E Berry St, Room 126, Fort Wayne
- Agendas: cityoffortwayne.org (Council page)
- Public comment: Available at 1st and 3rd meetings of every month
(changed Jan 2026 — previous system allowed comment at every meeting)
- Contact: [email protected]

ACTIVE DATA CENTER ISSUES:
- IDEM approved Google diesel generators (residents opposing)
- Drainage/stormwater vote required Google to pay $200K
- Council President Paddock requested town hall with Google
- Google created website (Feb 2026) to address community concerns

ALLEN COUNTY COUNCIL: Separate body. Meets regularly at County Courthouse.

IDEM PUBLIC COMMENT: Indiana Department of Environmental Management accepted public comments on Google's air permit. That window has closed, but future permit applications may reopen comment periods.

HOW TO GET ON AGENDA: Contact Council office. Public comment open without pre-registration at designated meetings.

== STATEWIDE VENUES (applicable to all Indiana counties) ==

INDIANA UTILITY REGULATORY COMMISSION (IURC):
- Holding 10 listening sessions across Indiana (Apr 2026) on rising utility costs
- Noblesville session Apr 9 drew ~20 residents connecting data centers to rate hikes
- Investigation into bill transparency and rising electricity costs
- Online comments: iurc.in.gov
- NIPSCO, AES, Duke rate cases are active — public comment periods exist for each

INDIANA GENERAL ASSEMBLY:
- 2026 session ADJOURNED sine die Feb 27, 2026
- Next session begins Jan 2027
- Key 2026 bills: SB 79 (IURC data center working group), HB 1210 (1% electricity savings surcharge), HB 1245 (demand study — never advanced)
- WFYI/Mirror Indy headline: "At a pivotal moment for data centers, Indiana lawmakers take little action"
- Citizens Action Coalition tracks all utility/data center bills: citact.org/26iga

IDEM (Indiana Dept of Environmental Management):
- Air permit applications trigger public comment periods
- Google Fort Wayne diesel generator permit was approved despite opposition
- Future data center air/water permits will have their own comment windows

== LOCAL COUNCIL (Fort Wayne City Council) ==
1. REVOKE OR CONDITION TAX ABATEMENT on diesel generator removal.
FACT: Council was NOT informed about diesel backup generators when they approved the project. IDEM approved the air permit despite Council President Paddock's letter requesting rejection (Q69).

2. REQUIRE GOOGLE TO FUND CLOSED-LOOP COOLING RETROFIT.
FACT: Google has not disclosed water consumption. "Water use for local data center unknown" (Journal Gazette, Q67).

3. EXPAND TAXPAYER AGREEMENT REPORTING: Require Google to publish annual energy usage, water consumption, and emissions data.
FACT: $1M/year x 25 years taxpayer agreement is "very broad on purpose" with minimal restrictions (Q63).

== PLAN COMMISSION ==
1. DENY WETLAND EXPANSION: State approved expanding campus onto protected wetlands despite local opposition. Plan commission should require mitigation.

== STATE LEGISLATURE ==
1. REQUIRE IDEM TO DENY AIR PERMITS for diesel backup generators at data centers when cleaner alternatives exist (battery storage, natural gas).
FACT: Council discovered diesel generators after approval (Q69).

2. REQUIRE PRE-APPROVAL DISCLOSURE of all environmental impacts.

== UTILITY COMMISSION (IURC) ==
1. MONITOR I&M RATE CASE: Indiana Michigan Power cites Google revenue as reason to LOWER rates. Ensure this benefit actually reaches residential bills.
FACT: Fort Wayne is the only Indiana case where utility rate impact may benefit existing ratepayers (Q66).