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Council approves policy adopting fiscal plan for proposed east annexation aimed at data center campus
Summary
Council introduced and approved a resolution adopting a definitive fiscal plan for a voluntary annexation of roughly 1,281 acres on the city’s east side, intended for a data-center campus; staff said developer-funded utilities will limit early city capital costs while future tax revenues are expected to cover service increases.
La Porte City Council on May 4 introduced and approved a resolution adopting a written fiscal plan and definitive policy for a proposed voluntary annexation east of the city aimed at enabling a data-center campus.
City economic development staffer Craig Phillips told the council the annexation area covers about 1,281 acres, is primarily vacant agricultural land with some light industrial zoning and an estimated current assessed value of $2,583,372 (as of Jan. 1, 2025). "The proposed future development is anticipated to be a data center campus," Phillips said, adding the plan assumes roughly two 600,000-square-foot buildings could be built in the four years following annexation.
The fiscal plan commits the city to provide non-capital services (police, street maintenance, garbage collection) within one year of the annexation’s effective date and to provide capital services within three years. Phillips told the council that water, wastewater and internal campus streets and storm infrastructure are expected to be fully funded and built by the developer: "It is anticipated that any necessary improvements and extensions will be fully funded by the developer," he said.
Council and staff presented the fiscal estimate for incremental city costs in the first year as modest: approximately $1,000 for additional police fuel/maintenance and about $4,200 for street maintenance — roughly $5,200 combined — which, officials said, should be covered by the increased property-tax levy tied to the annexation. The plan also projects that future incremental assessed value would be captured by a redevelopment/ TIF structure to support infrastructure and that the tax-rate impact on current residents could be slightly reduced by the investment.
Councilors asked about public access to the plan and were told copies will be available in the clerk-treasurer’s office and by email; Phillips said the document will remain available through May 18 prior to the annexation ordinance consideration. The resolution adopting the fiscal plan was moved, seconded and approved by the council on a majority vote.
