Mayor says city has not agreed to incentives for proposed data center; resident questions air, noise, tax and traffic impacts

At the Michigan City Common Council meeting on July 15, a resident asked a series of questions about a proposed data center near Whirl Road, raising concerns about costs to taxpayers, property values, traffic, golf-course impacts, noise and electricity supply.

Jim McKay, who lives near the proposed site, asked how a data center would affect the municipal golf course, whether generators would create constant noise, whether NIPSCO would keep a local plant open to supply the facility, how it would affect property taxes and values, and what costs the city or county might bear.

The mayor responded in detail: the city has not agreed to any incentives and no incentive package has been presented to the City Council. The mayor said he asked to be removed from a nondisclosure agreement last week and issued a press release because the proposal “didn't meet what I thought was the community benefit.” He said any developer that wants local incentives must “sell this to you all and to the public,” including public workshops, union labor commitments, local hiring promises and upfront capital contributions if applicable. The mayor repeatedly stated that, as of July 15, “no incentive has been brought to the City Council at all.”

Why it matters: Residents asked specific local-impact questions; the mayor’s statement clarifies that no city action or incentive has been approved and that future proposals would require public presentation and council consideration. City staff also noted the site is private property and that building permits and public-record requests can be filed for construction activity.

Procedure and follow-up: The council did not take any action on the topic at the July 15 meeting. The mayor and redevelopment staff said any future proposals or incentive requests must be presented to the council and the public with the usual review process.