The Sunday Post - November 1, 2026: The $113 Million Question, a Sustainable Data Center, and a Downtown of Nothing
A weekly report from Councilor Michael-Paul Hart — Building the Smartest City in America.
Volume 2, Issue 44
The $113 Million Question
Last week I told you why I wasn't buying the $5 billion resort proposal for Washington Square. This week I want to talk about some real money that could help move Washington Square forward.
On Friday I held a press conference at Lugar Plaza with Jon Hooker, President of the Central Indiana Building Trades, to talk about the DC BLOX project at the old Ford plant site in the Thunderbird Commerce Center.
You may have seen the headline. $113 million in tax breaks for a data center.
That is a big number. But I want you to understand what is actually being proposed and what we get in return.
That is a big number, and I understand why people question it. I hear it all the time. Why don't we just make these companies pay their fair share?
Here is the reality. Indianapolis is competing with other cities and states for these investments. If we aren't competitive, companies can take their projects somewhere else. Some people are fine with that. But I want to see a more developed Eastside, and we aren't going to get there by continuing to pass up opportunities to grow our tax base.
Consider what this property produces today. Just $37,655 a year in property taxes. It is assessed at about $1.3 million.
With DC BLOX, the assessed value grows to approximately $83 million. Even with the ten-year tax abatement, the project is expected to pay $27.6 million in property taxes. Once the abatement expires, that grows to about $11 million a year.
Warren Township schools alone are estimated to receive $19.4 million during the abatement and another $4.7 million annually after it ends. The Irvington-Brookville TIF district would grow from $8.7 million to nearly $16 million.
Now, about that $113 million.
Roughly $92.5 million of it involves taxes on equipment that does not exist on the property today. We are talking about new investment, not taxes the City is currently collecting. It is a substantial incentive, and I think we have an obligation to make sure taxpayers get something worthwhile in return.
This is where Washington Square comes in.
As part of the proposed agreement, DC BLOX would provide nearly $15 million in community commitments. That includes $5.7 million toward the future demolition of Washington Square Mall and at least $2.5 million for workforce development on the Far Eastside.
That $5.7 million won't solve everything at Washington Square, but it gives us another piece of the funding needed to move redevelopment forward.
I have also been asked why I support this project after opposing Google's proposed data center in Franklin Township.
The difference is pretty simple. Google wanted to build on hundreds of acres of farmland. DC BLOX is proposing to redevelop an old industrial property that is already zoned for this use.
I don't believe every data center belongs in Indianapolis. I do believe there are places where this type of investment makes sense, especially when it puts an underused industrial property back to work and brings real benefits to the surrounding community.
Right technology, right place.
Tomorrow I will introduce the abatement proposal to the Council. It still has to go through the public approval process, including the Metropolitan Development Commission. The numbers are estimates, and the commitments need to be enforceable.
Can a Data Center Be Sustainable?
The week before, I spent a day at IU Indianapolis for a forum on data centers hosted by the Kelley Institute, Indiana Business Research Center, and Gnarly Tree Sustainability Institute. More than 125 people were there, representing utilities, industry, government, community organizations, and universities.
The discussion was held under the Chatham House Rule, so I can share what I learned, just not who said what.
My biggest takeaway? Not every data center is the same, and communities need to do their homework before one comes knocking.
The size of these projects has changed dramatically. Older data centers used around 5 megawatts of power. Some of the new campuses being proposed need 500 megawatts to a full gigawatt. That is an enormous difference, and it raises legitimate questions about electricity, water, land use, and the surrounding neighborhoods.
Most local zoning ordinances were never written with projects this large in mind. In fact, about 40 of Indiana's 92 counties have already adopted rules to slow down data centers or other large infrastructure projects while they figure things out.
One point I heard repeatedly was something I agree with. Treat data centers like major industrial developments. Have clear zoning standards for noise, lighting, and screening. Require plans for what happens when a facility closes. And make sure those rules apply consistently.
The communities that had done this work before a developer showed up were in a much better position to negotiate.
That is where I think Indianapolis needs to focus its attention. We don't need to shut the door on investment, but we do need to be smart about where it goes and what we expect in return.
You Can't Be a Downtown of Nothing
On Friday the Indianapolis Business Journal published my op-ed, "A forgotten lesson: You can't be a downtown of nothing."
Two weeks ago I told you this budget lacks vision. Here is the bigger problem.
Former Mayor Bill Hudnut used to say, "You can't be a suburb of nothing." He understood that Indianapolis needed a strong downtown, and the City invested heavily in building one. He was right. But I think that lesson goes both ways.
Look around us. Fishers built a $170 million event center. Noblesville built a $93 million arena. Westfield has Grand Park and a brand-new YMCA. Meanwhile, our Ransburg YMCA closed after 67 years, and Washington Square has been declining for decades.
Families don't stop shopping, swimming, or going to games. They just go somewhere else. Eventually, some move there too.
We just passed a $1.9 billion budget with no real plan for rebuilding these community centers. I'm not arguing against downtown investment. I'm arguing we should use the same tools that built downtown to rebuild our townships.
Downtown matters. It is the front door of this city. But a front door is not a house. We need to give families a reason to stay.
Election Day
Election Day is Tuesday, November 3. Polls in Indiana are open from 6 a.m. to 6 p.m. Please vote.
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