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Newberry accepts confidential application from ‘Project Hydro,’ sets public hearing on possible tax abatement

September 10, 2025 | City of Newberry , Alachua County, Florida


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Newberry accepts confidential application from ‘Project Hydro,’ sets public hearing on possible tax abatement
City officials announced receipt of the first application for an economic‑development ad valorem tax exemption under the city’s ordinance and set a public hearing to consider any eventual abatement ordinance.
Dallas Lee, assistant city manager and CFO, told the commission the application, known in staff materials as Project Hydro, is confidential under state law while the company is deciding among competing locations. Lee said Project Hydro has represented that it would employ at least 50 full‑time equivalent positions and would pay wages substantially above the local average. Lee provided one high‑level wage figure, saying the typical wage represented in the application is about $90,000 per year.
The nut graph: By unanimous motion the commission directed staff to negotiate a proposed abatement agreement and set an initial public hearing date for Oct. 27; any final abatement would require subsequent votes and publication of a draft ordinance with full public record disclosure once the applicant chooses a location.
City staff told commissioners the city’s economic‑development abatement program is authorized by voter referendum and state law, and that the first step is for the commission to signal its intent and allow staff to negotiate a package. The commission approved Resolution 2025‑48, acknowledging receipt of an application, directing staff to negotiate terms, and scheduling a public hearing for Oct. 27.
Why it matters: If the company selects Newberry and the commission later approves an abatement ordinance, the city could offer a time‑limited reduction in ad valorem taxes tied to job and investment commitments; staff cautioned that the full package, including precise abatements and performance conditions, will come back to the commission for public hearings and a final ordinance vote.

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