Leaport Redevelopment Commission rescinds Microsoft tax abatement and approves school partnership directing 15% of related taxes to local schools

The Leaport Redevelopment Commission on March 3 voted unanimously to rescind a June 2024 taxpayer agreement with Microsoft and approved a new agreement channeling 15% of Microsoft-related tax revenue to the Leaport Community School Corporation for educational and work-training programs.

Bird Cook, executive director of the Leaport Economic Advancement Partnership, read the rescission resolution and said the original June 3, 2024, agreement had granted Microsoft a 100% personal property tax exemption for 40 years for equipment that qualifies under Indiana Code §6-1.1-10-44. ‘‘Microsoft President Brad Smith announced that the company would no longer seek local tax breaks or utility deals,’’ Cook said, and the parties negotiated rescission so Microsoft will pay full real and personal property taxes.

The commission’s second resolution approves an agreement — described in the meeting as substantially in the form of Exhibit A — using funds from the Boyd Boulevard allocation area under Indiana Code §§36-7-14 and 36-7-25-7 to finance educational, worker-training and retraining programs administered by the Leaport Community School Corporation. Cook summarized the agreement as a ‘‘new and historic partnership’’ and said 15% of the taxes related to the project’s tax base will be paid annually to the school corporation for programming and student opportunities.

Commissioners voted on both resolutions by voice; the meeting record shows all four members present voted yes (vote recorded as 4-0). The city council and the Board of Public Works had taken similar action on the rescission the previous day and earlier that morning, respectively, according to the presentation.

When asked when the school would receive its first payment, Cook explained that property is assessed Jan. 1 and taxes are paid in arrears. He said some partial assessment could occur in January 2028 leading to partial tax receipts that year, but he expected the first significant tax receipts tied to the first building to arrive in 2029; full project buildout was estimated at about five to seven years.

Outside counsel and advisors acknowledged in the meeting included Tom Pitman of Barnes & Thornburg, Andy Mouser of Baker Tilly and attorney Hagenau, and representatives from Microsoft and the Leaport school board were present for the scheduled school-board action that will follow the redevelopment commission meeting.

The commission’s action repeals the redevelopment commission’s prior approval resolution, authorizes the commission president to execute documents necessary to effect the rescission and directs the city’s clerk-treasurer to make fund transfers to the school corporation under the new agreement. No dissenting votes were recorded.