Council panel opposes tax break for $2 billion DC Blox data center

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Indianapolis council committee opposes tax break for DC Blox data center

INDIANAPOLIS — An Indianapolis City-County Council committee on Monday night voted to recommend against a proposed tax break for the $2 billion DC Blox data center near Irvington, one of the largest private development projects in Indianapolis history.

The Metropolitan and Economic Development Committee voted 11-2 against recommending the tax breaks. The proposal heads to the full council on Dec. 7.

The $113 million incentive package would provide tax breaks over 10 years for the data center near South Kitley Avenue and the Pennsy Trail on the Indianapolis east side. The Indianapolis Metropolitan Development Commission on July 15 approved a variance to allow construction to begin, just ahead of a citywide data center moratorium through 2027, which the council approved Aug. 19.

As part of the tax break, DC Blox has announced that it will double its local investment commitment to $30 million, including $5 million to help restore the nearby Washington Square Mall property.

Under the tax break proposal, the site would still generate nearly $28 million in tax revenue over 10 years. The amount would increase significantly after the tax abatement expires.

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