Data center foes try to force referendum

Opponents of Vantage Data Centers’ proposed Lighthouse Campus are circulating petitions aimed at forcing the City of Port Washington to hold a referendum vote on a tax incremental financing district that would fund $459 million in project costs and is key to the campus.

But as they inch closer to their goal of 1,000 signatures on the petition, the Port Washington Common Council voted unanimously Tuesday to approve the TIF district and agreed to annex and rezone another 90 acres for the 1,900-acre campus on the north side of the city. 

Only one local approval is needed yet for the TIF district. The Joint Review Board, which is made up of representatives of the taxing entities — the city, Port-Saukville School District, Ozaukee County and Milwaukee Area Technical District as well as a citizen — will meet Tuesday, Nov. 18, to act on the district.

Christine Le Jeune, a member of Great Lakes Neighbors United, a grassroots group of data center opponents, said Tuesday that its members believe the petition and a referendum vote are the only way their voices will be heard.

“Until now, Port Washington residents make statements at the City Council meeting and are met with a wall of stares,” she said. “We’re all pretty frustrated. We really want the people of the City of Port Washington to be heard.

“If it’s such a great project, why would they be afraid to put it to a referendum?”

The group began collecting signatures last weekend, Le Jeune said, and as of Tuesday night only needed 465 more to achieve its goal.

Le Jeune said that while many projects the city deals with don’t require a referendum, something that would alter the community the way the data center will should be put to a vote.

“With the massive scale of this project, this is exceptional,” she said. “Such a project should have a vote. This is a democracy, not an oligarchy.”

Le Jeune said that collecting the roughly 955 signatures from City of Port residents needed for the petition — they’re aiming for 1,000 — is a daunting task, but she is heartened by the response.

“It’s beautiful to see and feel, to see the excitement and support,” she said. “Some people are already making plans to move away if this goes through. One woman told me, ‘I moved here to get away from all this.’

“No one in Port moved here because of the prospect of a data center.”

People are concerned about the potential impact of the data center campus on their health, the environment, air quality, property values and electrical bills, she said.

While Vantage has said it will pay for the increased power generation and transmission, as well as other infrastructure costs, Le Jeune said that hasn’t been the experience elsewhere.

“Why would Port be this magical exception?” she asked. “Where is that (commitment) actually written. They throw around a lot of numbers. These are just fantasy numbers right now without any contractual agreement showing this is happening.” 

To petition for a referendum, a group must collect the signatures of City of Port residents who are adults eligible to vote. The number required is 15% of the number of people who voted in the last gubernatorial election.

Once a petition is turned in to the city, the city clerk has 15 days to review and certify the petition, ensuring it is signed by the correct number of people and they are all qualified voters. After it is certified, it goes to the Common Council, where aldermen can approve the action requested or direct the clerk to place the issue on the ballot for the next general election or, if three-quarters of aldermen agree, a special election.

The referendum would be binding, an official said.

At Tuesday’s Common Council meeting, two representatives of We Energies outlined the utility’s proposed “bespoke resource and very large customer tariffs”  that are intended to ensure large users such as data centers pay for the cost of generating and transmitting the power they need, not other rate payers.

The Wisconsin Public Service Commission is expected to decide whether to approve the utility’s proposal by May, they said.

We Energies intends to add $12 billion in renewable energy to the grid in the next few years as well as $3.4 billion in natural gas power, Bert Garvin, the utility’s executive vice president, said.

“We do want Vantage to cover all the cost,” Garvin said. “No expenses for Vantage will be passed on to our other customers.”

When large customers like Vantage sign up for the rate, they agree to pay the cost even if their plans for development fall through, Rich Stasik, We Energies vice president for regulatory affairs, said.

We Energies has a $1.1 billion contract to supply Vantage with power, he added.

Ald. Mike Gasper asked if the utility is considering nuclear power for data centers, but Garvin said it is too expensive — as much as $600 million “just to buy the land, before you turn a shovel of dirt.”

“We’re focused on renewables and on gas,” he said.

Tuesday’s meeting was held in the ballroom at the Holiday Inn Express to accommodate the crowd, which numbered close to 200 people.

A number of those attending, many of them tradespeople, company representatives or economic development officials, spoke in favor of the data center and the TIF district while others opposed them.

While many people said the TIF district will not benefit the city, only Vantage, Ald. Mike Gasper said the $175 million in infrastructure the company is paying for through the TIF district will make other developments possible, improve the city’s sewer and water systems and support work to prevent flooding on Valley Creek.

“We’re definitely getting a significant value out of it over the (projected 18 year) life of the TIF,” Gasper said.

But Scott Lone, 222 Crocker Ave., Port Washington, said the city should not approve a TIF district for a global technology company.

“They don’t need our help and we can’t afford to give it,” Lone said. “That’s not economic development. That’s corporate welfare.

“We’re not against growth. We’re against this type of growth. Are you listening? Let’s stand up for responsible community centered growth.”

Mike Beaster, 305 S. Garfield Ave., Port, said the city should not approve the campus he said is “outrageously outsized” and will cost as much as seven NFL stadiums. 

But Andy Allen, 507 Briarwood La., said history will show the council was “visionary” in its actions, saying Vantage is a leader in sustainability and design.

“This is the future of technology, thoughtful, clean and future-oriented,” he said. 

Kathleen Cady Schilling, executive director of Ozaukee Economic Development, said the data center is an investment in the city and county’s future, noting the expanded tax base that will result will benefit everyone in the area.

“This data center is an opportunity to grow thoughtfully,” she said.