Proposed Google Agreement 'not a done deal'

The former Northwest Aluminum site in the Port of The Dalles is the site being proposed for up to two new Google data centers. This shot of the property is looking northwest from Second Street.

By Tom Peterson

A dozen people, ranging from local leaders to residents, gave an outpouring of public support for the latest Google tax agreement that would reduce property taxes for Google for 15 years and could also bring some 126 million dollars to the local community at The Dalles City Council Meeting on Monday, Feb. 22. 

The Council and the Wasco County Commissioners must decide on whether to give the global tech giant the breaks in weeks to come in an agreement that could see two new data centers built with an approximate value of $1.2 billion.

Comments landed mostly into two categories on Monday - those who saw the agreement as an opportunity to grow and improve The Dalles community. And those that wanted more information about the environmental impacts, mainly about the amount of water that two new data centers would require. 

However, Mayor Rich Mays started the public testimony with a letter submitted by Widge Johnson. Johnson asked if “it was already a done deal… If so, why would you ask for comment?… just move ahead.”

“In my point of view, what we are considering tonight is a yes or no on whether to enter into an abatement agreement with Google,” said Councilor Darcy Long-Curtiss. “That is the view I am taking on this.” 

Councilors Rob Runyon, Dan Richardson and Tim McGlothlin responded to the letter by stating it was not a “done deal” and they were open to hearing testimony.

“I look forward to hearing from people with questions, opinions and concerns,” Richardson said.  

Runyon said the proposed agreement they were reviewing was “strikingly different” than those made with Google in the past. “I would not support another enterprise agreement. “The SIP is a different animal.”

SIP or Strategic Investment Plan is the state’s legal term for the proposed agreement, and it allows Google to start making payments before construction and paying property taxes and fees after occupancy. Runyon said he liked that tax districts would have the opportunity to participate in the distribution of the proceeds.

“The SIP gives us that opportunity,” he said.

To read more on the specific agreement click on this CCCNews story.  

MORE TAXES WITHOUT A LOT MORE PEOPLE

Former The Dalles Mayor Jim Wilcox stated he was in favor of the agreement, noting it created more taxes without a lot of need for additional housing as Google employee needs have been low thus far.

Past reports have put Google employment totals at 100-150 employees with another 400 plus additional contract workers at the current site.

IMPROVE TD SCHOOLS 

North Wasco County School District Chair John Nelson said he supported the agreement. New data centers would fall into the D21 taxing district. However, he said taxing formulas for schools were complicated as the money had to run through state coffers. He asked city leaders to dedicate themselves toward passing a construction bond for a new high school.

Jeremy Thompson agreed with Nelson. “I see struggles now because of our antiquated facilities,” he said. “This is an opportunity to get a new high school in our town.”

CGCC - SIP IS BETTER

Columbia Gorge Community College President Dr. Marta Yera Cronin told councilors about the student housing and skills center currently being built at The Dalles Campus as a result of partial funding through Google dollars from enterprise zone projects. She supported the new agreement. 

“From the college perspective, the SIP is a better benefit for the community,” she said. “It contributes to the economic growth of the region.”

35 ACRES WILL CREATE JOBS 

Port of The Dalles Commissioner Mike Coutney was in favor of the agreement. He said the 35 acres, in the agreement, that Google would give back to Wasco County in the Port would translate to more local jobs. He said one acre creates between 5 and 10 jobs at a family wage or better, once a company has moved into the site and starts hiring. “It would put more people to work in The Dalles,” he said.

GOOD FOR LIBRARIES

Corliss Marsh said the agreement would help local libraries because Google would pay additional taxes into the Wasco County Library District. She also pointed out that Google contributes much more to the community than most people know because it requires anonymity when giving out grants.

MORE MONEY

Former Mayor Steve Lawrence said that the first three Google enterprise zones would bring some $46.5 million to the community before the tax reductions end. “Now we’re talking about $126 million,” he said. “I am very impressed Google wanted to talk about the SIP agreement because of what people said.”

HELP NATIVE AMERICANS

Sheila Dooley said money from the agreement should be used to help Native Americans in the area who do not have electricity or running water. “I don’t want to see the Indians left out,” she said, also noting that care should be taken for geese who winter over in the former rodeo grounds.

MORE DISCLOSURE ON GOOGLE CONTRIBUTIONS

Philip Mascher, who was in favor of the agreement, said he had believed that Google was “largely absent” from the community and provided a poorly working wifi system in downtown The Dalles. But, in recent months he had learned that Google had contributed much to the community in many ways. “It would be good to put out that information,” he said, encouraging the mayor to do so. 

WATER USE

Mays said the City Public Works Department and Google are currently negotiating a plan that would provide additional water to Google and the City. He said Google would pay for the improvements, and those negotiations would go to public hearings in months to come. But he was not at liberty to discuss them at this time.

Rodger Nichols, Tiffany Woodside and Karen Mackey all asked about how much water Google is currently using or what the plans were to supply water to the new data centers. 

Woodside, of Hood River, pointed out that there were finite water sources in Oregon, and The Dalles had one of the major aquifers. She asked about the quality of the aquifer, the toxicity of the build site and how it might affect groundwater.

Mackey asked for the amount of water that Google Currently uses, noting Mays had agreed to share that information after a meeting held by Wasco County Commissioners on Feb. 17. 

On Monday night, Mays said he was “told the information was confidential and could not be disclosed at this time.”

Mackey responded, “We will never know how much they are using?”

“I don’t think that would be appropriate to give out. I will have to check with our attorneys,” Mays said. 

Mackey then asked if Google had filled out a form with The Dalles City works requesting an amount of water. 

The Dalles Public Works Director Dave Anderson said “there has not been an official form filled out yet,” and “the supply use was under negotiation.”

After closing the meeting to public testimony, Richardson said it would “be nice to reassure our neighbors to the effect that we will not let this process run us out of water… that we have an eye on this. We need to be able to say we looked at it carefully...”

“We are going to ensure an adequate water supply for city residents,” Mays said. 

Anderson added that the city would protect existing customers and all new development. 

ENVIRONMENTAL IMPACTS

It was also noted several times that Google must comply with all federal, state and local permitting processes dealing with environmental issues. 

“Nothing in this agreement circumvents that,” said Wasco County Administrative Services Director Matthew Klebes.

APPEARANCE

Tonya Brumley requested that Google look into the design aesthetics of the new buildings if constructed. She said Google’s larger building to the west was a “bit of an eyesore. This is the time to make it a little bit more appealing… It’s the front door to the community… make sure it can look the best it can as this moves forward.”

FOG 

Carolyn Wood spoke in favor of the agreement. But she was also concerned that additional data centers would create so much fog that it would prevent airplanes from landing in Dallesport on certain days. She suggested Google use a system that captured the steam. 

Mays responded by noting Google would have to apply for permits from the Federal Aviation Administration, intimating those permits would address that issue.

FINAL DECISION COULD COME IN MARCH

Decisions to ink the deal could happen as early as joint City-County meetings set for March 3 and March 8.