Shelby County

Prologis — Shelbyville, SR 44 & I-74 interchange. $2B, 429 acres, up to 13 buildings. 25 jobs per building constructed. Plan Commission recommended AGAINST approval. Common Council overrode: approved 4-2 (1 abstention for conflict of interest). Tax abatement: 30-year 100% personal property + 10-year 50% real property. Thousands signed opposing petition citing traffic, quality of life, infrastructure strain, ecosystem disruption. Status: APPROVED (Apr 2026).

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 Note: IC 6-1.1-12.3 (originally cited in some analyses) has been repealed; the active property tax provision is IC 6-1.1-10-44, as amended by P.L.256-2019, SEC.1.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.

Prologis — Shelbyville Common Council, 4-2-1 (Apr 7, 2026):
YES: Mike Johnson (President, 3rd Ward), Kassy Wilson (1st Ward), Linda Sanders (Vice President, 4th Ward), Chuck Reed (At-Large).
NO: Betsy Means-Davis (2nd Ward), Thurman Adams (5th Ward).
ABSTAINED: Denny Harrold (At-Large) — conflict of interest; his law firm represented Prologis (the petitioner for the annexation).

Council overrode the Shelbyville Plan Commission, which had recommended AGAINST approval.

ALL STILL IN OFFICE. All 7 members contactable via shelbyville.in.gov or at 317-398-6624. Council meets 1st and 3rd Monday each month.

NOTE: Harrold's abstention due to his law firm's representation of Prologis raises accountability questions — his recusal was appropriate but means only 6 of 7 members cast substantive votes on a $2B decision.

LOCAL ABATEMENTS GRANTED — approved by Shelbyville Common Council (4-2, 1 abstention for conflict of interest).

1. 100% PERSONAL PROPERTY TAX ABATEMENT — 30 years.
Covers all computing equipment, servers, and infrastructure.

2. 50% REAL PROPERTY TAX ABATEMENT — 10 years.
Covers buildings and physical improvements.

3. ANNEXATION of 429-acre property into City of Shelbyville (also voted 4-2-1).

Economic development agreement with Prologis Inc. requires minimum $2 billion investment in real and personal property improvements. Maximum 11 buildings (reduced from 13 as originally proposed). Must create 25 jobs per data center building constructed.

PARTIAL — $500 million in additional taxes over 20 years cited, but no separate Community Enhancement Agreement identified.

The Shelbyville Common Council approved an economic development agreement with Prologis that includes the tax abatement (30-year personal property, 10-year real property) but the published reporting focuses on tax revenue projections rather than a separate enhancement payment.

Staff presentation claimed the data center campus will generate $500 million in additional taxes for the city over a 20-year span. This is the NET tax revenue after abatements, not a separate community payment.

Full text of the economic development agreement: not found online. Would need to be obtained from Shelbyville city records.

Job commitment: 25 full-time jobs per building (up to 11 buildings = 275 max).

UNCERTAIN — no separate enhancement payment identified.

The Shelbyville/Prologis economic development agreement focuses on projected tax revenue ($500M over 20 years) rather than a separate community payment. How the NET tax revenue is allocated follows normal municipal budgeting — city council appropriations.

Job commitment (25/building) serves as the primary community benefit condition. No published restrictions on how tax revenue from the project can be spent.

Full agreement text not online — specific conditions cannot be confirmed.

NO — project just approved (April 2026).

The Shelbyville/Prologis economic development agreement was voted on in April 2026. No community enhancement payments have been triggered yet as construction has not begun. The $500M in projected tax revenue over 20 years is future, not current.

PROMISED:
- 25 permanent jobs PER BUILDING (up to 11 buildings = 275 maximum)
- 450 permanent full-time jobs at full campus completion (per Prologis)
- Average salary: $100,000/year
- 6,750 construction jobs at peak
- $2 billion total investment

DELIVERED: None yet.
- Economic development agreement just approved April 2026
- Construction has not begun

TIMELINE: Multi-phase buildout over years. No completion deadline published.

NOTE: The 25-jobs-per-building commitment is a contractual minimum tied to the abatement agreement. If Prologis builds all 11 buildings but delivers only 25 jobs each, the total is 275 — not 450.

PROJECTED TAX REVENUE: $500M over 20 years (per Prologis/city presentation).

ABATEMENTS:
- 100% personal property for 30 years
- 50% real property for 10 years

INVESTMENT: $2 billion

TAX FOREGONE: Not publicly calculated. The $500M over 20 years is what the city WILL collect (after abatements). What it would collect at NORMAL rates is not disclosed.

ROUGH CALCULATION: At Indiana's typical effective property tax rates (~2-3% on assessed value), $2B investment could generate $40-60M/year at normal rates. The $500M over 20 years implies ~$25M/year — meaning roughly $15-35M/year is foregone during the abatement period.

No separate CEA payment identified.

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.

Prologis: (1) Shelbyville Plan Commission — recommended AGAINST approval. (2) Shelbyville Common Council — voted 4-2-1 (4 yes, 2 no, 1 abstention for conflict of interest) on Apr 7, 2026 to approve annexation, rezoning, and economic development agreement (30-year 100% personal property + 10-year 50% real property abatement). Council overrode Plan Commission recommendation.

Prologis — Shelbyville Common Council, 4-2-1 (Apr 7, 2026):
YES: Mike Johnson (President, 3rd Ward), Kassy Wilson (1st Ward), Linda Sanders (Vice President, 4th Ward), Chuck Reed (At-Large).
NO: Betsy Means-Davis (2nd Ward), Thurman Adams (5th Ward).
ABSTAINED: Denny Harrold (At-Large) — conflict of interest; his law firm represented Prologis (the petitioner for the annexation).

Council overrode the Shelbyville Plan Commission, which had recommended AGAINST approval.

ALL STILL IN OFFICE. All 7 members contactable via shelbyville.in.gov or at 317-398-6624. Council meets 1st and 3rd Monday each month.

NOTE: Harrold's abstention due to his law firm's representation of Prologis raises accountability questions — his recusal was appropriate but means only 6 of 7 members cast substantive votes on a $2B decision.

Prologis $2B complex — Shelbyville Common Council, Apr 7, 2026:
YES, public testimony. A crowd of detractors "made their voices heard" during the vote (The Republic). Thousands signed an online petition opposing the project, citing increased traffic congestion, diminished quality of life, strain on local infrastructure, and disruption of ecosystems.

Sentiment: STRONGLY AGAINST. The Shelbyville Plan Commission had previously voted AGAINST approval, making the council's 4-2-1 override particularly contentious.

Two separate meetings were held the same week — Plan Commission (voted no) and Common Council (voted yes 4-2-1). GIANT FM and Fox59 both reported significant public attendance at both meetings.

YES — minutes, agendas, and audio recordings available.
Shelbyville Agenda Center: shelbyville.in.gov/AgendaCenter/City-Council-5
Common Council page: shelbyville.in.gov/255/Common-Council

Apr 7, 2026 meeting (Prologis $2B data center vote): held at Breck Auditorium, Shelbyville High School. Meeting streamed on YouTube.
GIANT FM published full audio recording of the Apr 6, 2026 council meeting.

Annexation & Zoning Information Hub: shelbyville.in.gov/525/Annexation-Zoning-Information-Hub — dedicated page for data center-related documents.

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: Duke Energy Indiana.

RATE CASE: Duke Energy Indiana rate case approved Jan-Apr 2025.
- Approved increase: ~$295.7M in annual revenue
- Duke plans 14 GW of new generation + 4.5 GW battery storage over 5 years
- $103 billion total spending plan (largest of any US regulated utility)

No specific IURC filing for the Prologis/Shelbyville data center identified. Project just approved April 2026 — grid impact would be assessed as part of interconnection process.

CONCERN: Duke advised customers to "plan early for interconnections as projects in urban and high-growth areas may face delays."

ESTIMATED WATER USE: Not yet disclosed. Project just approved April 2026.

Prologis has not published water consumption figures for the Shelbyville campus. The economic development agreement requires $2B investment and up to 11 buildings but does not include published water commitments.

COOLING METHOD: Not disclosed. Industry typical is evaporative (1-5 MGD for hyperscale campuses).

Water source and capacity assessment would occur during the permitting phase.

DEFENDING.

Shelbyville Common Council voted 4-2 (1 abstention) in April 2026 to advance the Prologis agreement. The majority has defended the decision based on $500M in projected tax revenue over 20 years. The two dissenting votes and their public reasoning have not been separately reported.

Community opposition includes an online petition with thousands of signatures opposing the project.

SHELBYVILLE COMMON COUNCIL — voted 4-2-1 (Apr 2026):

NO VOTES:
- BETSY MEANS DAVIS — term ends Dec 31, 2027
- THURMAN ADAMS — term ends Dec 31, 2027

ABSTAINED:
- DENNY HARROLD — conflict of interest (law firm represented petitioner)
Term ends Dec 31, 2027

YES VOTES (4 members — names not individually reported):
- All terms end Dec 31, 2027

NEXT ELECTION: Nov 2027 (primary May 2027).

All 7 council members (5 ward + 2 at-large) serve 4-year terms. Every seat is up simultaneously in 2027.

SHELBYVILLE COMMON COUNCIL:
- Schedule: Regular meetings (dates on city calendar)
- Location: 44 W Washington St, Shelbyville (or Breck Auditorium at Shelbyville High School for large-attendance items)
- Agendas: shelbyville.in.gov/AgendaCenter
- Recent: Apr 6, 2026 meeting at Breck Auditorium (data center votes)

ONGOING: Prologis economic development agreement just approved (Apr 2026). Future council meetings will address implementation details, building permits, and any additional approvals.

SHELBY COUNTY COUNCIL: Separate body. Handles county-level tax matters.

HOW TO GET ON AGENDA: Contact city clerk. Public comment available at regular council 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 (Shelbyville Common Council) ==
1. REQUIRE INDEPENDENT FISCAL ANALYSIS: The $500M/20-year revenue projection comes from Prologis/city, not an independent analyst.
FACT: At normal tax rates on $2B, annual revenue would be $40-60M. The $500M/20yr figure implies ~$25M/year — meaning $15-35M/year is foregone (Q68).

2. NEGOTIATE A CEA: No separate community enhancement agreement was identified.
FACT: Other Indiana data center communities negotiated $25M-$175M+ in CEAs (Q62).

3. REQUIRE WATER/ENERGY IMPACT STUDY before building permits.
FACT: No water consumption figures disclosed. Cooling method unknown (Q67).

== PLAN COMMISSION ==
1. CONDITION building permits on environmental impact disclosures.

== STATE LEGISLATURE ==
1. REFORM ABATEMENT TERMS: 100% personal property for 30 years + 50% real property for 10 years is among the most generous in the state.
FACT: These terms were approved by a 4-2-1 vote (Q58). Community petition gathered thousands of signatures in opposition (Q69).

== UTILITY COMMISSION (IURC) ==
1. REQUIRE PROLOGIS to disclose projected electricity demand before grid investment decisions are made.