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Mayor urges final four-month extension for data center as state bill could change terms
Summary
Mayor told the council Decennial Group requested a four-month extension to close power and lease deals for a new data center whose lead client is CoreWeave; he said a pending state bill (SB 27) that would return about 1% of data-center proceeds to host cities makes the extra time valuable. Council members pressed for stronger milestone-based incentives; a public commenter raised financial and environmental concerns about CoreWeave.
Mayor (speaker 2) asked the council to grant a single, final four-month extension to Decennial Group to finalize a power agreement with NIPSCO and a lease with CoreWeave, which he described as the primary client for a proposed second-phase data center in Hammond. "They're asking for a 4 month extension, and they're aware that this is the final extension we're gonna grant," the mayor said. He said the extension would allow the city time to assess the effects of a bill moving through the General Assembly that would return about 1% of net data-center proceeds to local communities as an incentive.
Why it matters: The mayor framed the extension as a limited pause to allow due diligence: if the state law passes, Hammond could potentially renegotiate terms to secure a share of future proceeds. He said the city has leverage only while final project milestones—power agreements and building permits—remain outstanding.
Council members pushed for concrete protections. One council member asked whether Hammond had received any incentive in the prior extension; the mayor said it had not and that incentives generally would be tied to milestones such as pulling building permits. Another questioned whether the extension itself carried any new incentive; the mayor replied the city would use the time to "sharpen our pencils" and seek fair compensation comparable to deals Hobart received for larger campuses.
Public concern: During public expression, Mary Shones (speaker 12) urged caution about CoreWeave’s financial strength and potential local impacts. She cited a news report and S&P ratings below traditional investment grade, saying rapid expansion raises risk. "It could be 1% of 0," she warned, and added concerns that the project could bring higher electricity bills and water risks and that most jobs are short-term construction positions.
What the council did: At the Feb. 23 meeting the mayor asked for the council’s support in granting the extension; council members verbally agreed to continue discussions and emphasized the need to tie any incentives or payments to concrete project milestones and to return to the council with more detail.
What’s next: The mayor said the parties expect to complete the power agreement and lease in the coming months; the requested four-month extension will give the city time to evaluate the effect of pending state legislation and to negotiate terms if SB 27 passes.
Sources: Mayor’s report and subsequent council questions at the Feb. 23 meeting. Direct quotes and concerns from Mary Shones’s public comment were recorded on the meeting record.
