Locals testify on latest Google Deal
File photo of Bob Haechrel while observing elections in November.
By Tom Peterson
Bob Haechrel hit on a question of fairness in regards to tax breaks for Google on it’s construction of two new data centers at the former aluminum plant site in The Dalles.
“We always give the big guy the break, and the little guy does not get the tax advantage,” he told Wasco County Commissioners at the first public hearing of an agreement that would provide 15-year property tax abatements to Google on two new data centers.
The hearing was held on Wednesday, Feb. 17.
“What would Google pay if there were no abatements?”
Wasco County Administrative Services Director Matthew Klebes responded by saying the first data center will pay 50 percent of the full property tax rate and the second data center will pay 60 percent of the full property tax rate based on the agreement that was being discussed.
Simply put, state law allows for tax breaks for large investments.
The State’s Strategic Investment Program (SIP) offers a 15-year property tax exemption on a portion of large capital investments. The program was created in the 1990s to induce large, capital-intensive facilities to locate and grow anywhere in Oregon, according to the Oregon Business website.
The deals are brokered with Business Oregon, the state’s economic development agency and county and city governments to enter into negotiated tax rates and fees and payments such as the one being discussed on Wednesday.
Location of proposed data center sites on the former aluminum plant grounds in the Port of The Dalles.
In this particular agreement, it allowed County and City staff to negotiate fees, one-time and guaranteed payments, which allowed for larger amounts of revenue to be collected from Google than in past enterprise zone deals.
Towards the end of the meeting, The Dalles Mayor Rich Mays said the first three agreements with Google would generate a total $45 million in tax revenue. This latest agreement would bring $54 million from one data center alone and a total $119 million if both are constructed at a cost of $1.2 billion.
To read more about the agreement check out CCCNews’ last story here.
“Are there any Indians that would benefit from this taxation of this land?” said Lana Jack. “Indian people live in extreme poverty up and down the river. Some of this money disbursed should be to the betterment of our community that lives without power or water - this is territory of the Wascopam people.”
Resident Bruce Lumper was in agreement.
“I strongly support Lana Jack’s request that the tax funds payment be directed to the indigenous community in our area... Lone Pine is a great place to start.”
Lone Pine is just upstream of The Dalles Shilo Inn on the Columbia River bank.
The City and County are not yet to the point of deciding where millions of dollars in tax revenue and payments will go.
Officials responded to the question, said the property tax money would go to existing taxing districts that are currently serving the community.
However, the agreement includes a community service fee, one-time and guaranteed payments worth millions of dollars annually.
Decisions on what tax districts and how much each will receive are still to be decided.
Commissioner Kath Schwartz and City Councilor Dan Richardson called for those decisions to be put on a fast-track if and when the deal is completed with Google.
Here are the current tax districts that are eligible to receive revenue from future Google improvements.
Fire and Parks
Mid-Columbia Fire and Rescue Board Member David Jacobs, speaking on his own behalf, thanked the negotiating team for their work on the agreement.
“You’ve done a great job of negotiating…” he said.
He also suggested that taxing districts should receive revenues based on their taxing authority. “It’s the fairest way,” he said.
He also pointed out there were other community projects, and nothing would prevent taxing districts from sharing the Google dollars through decisions of the individual boards.
Wasco County Parks and Recreation Director Scott Baker pointed out that additional dollars to his district would likely result in job creation for his department.
“Nice work team and thank you,” he said.
Water Usage
A woman, only identified as Karen, asked what the current water usage is at Google and how much more water would be necessary for two more data centers.
Mayor Rich Mays responded, stating the City’s public works department was working with Google on a plan to drill into the underground aquifer that would supply water to the facility. “Google is picking up the entire cost,” he said, pointing out that excess water would be available to City’s water system.
No statistics of current water usage by Google were given during the meeting.
Two comments also inquired about whether google would have to abide by environmental laws and National Pollutant Discharge Elimination System permits. Klebes responded by saying nothing in the agreement being discussed would have bearing on permits and EPA regulations.
He said Google would be required to go through all applicable state and federal environmental permitting before being allowed to build.
Locals still have a second chance to comment on the proposed deal with Google next Monday, Feb. 22 at 5:30 p.m. The City of The Dalles will hold the joint meeting with Commissioners again at that time.
Final decisions by Commissioners and City Councilors on the agreement are expected in early March.
