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Hobart Council Approves Amazon Data Center Incentives, Clearing Key Hurdle for Project

The vote followed weeks of public scrutiny over transparency, environmental impacts, traffic, noise.

Overview

  • City officials voted 6-0 to approve a package including a 10-year, 100% real property tax abatement, an enterprise IT equipment exemption, and a community enhancement agreement for the site at 61st Avenue and Colorado Street.
  • Amazon is set to deliver $47 million to Hobart by Jan. 31, with additional milestone payments of $10 million at the first building permit, $45 million when the first walls go up, $43 million in 2027, $40 million in 2028, and up to $2 million per building annually thereafter.
  • A fact sheet presented by Amazon’s attorney cited an estimated $11 billion investment and more than 400 permanent jobs averaging $37.44 per hour, differing from earlier reports that referenced a $15 billion figure.
  • City leaders say the payments are outside the levy and TIF and that the developer will fund required infrastructure, positioning the deal as a way to avoid raising local taxes and to support services such as roads, parks, and public safety.
  • Opponents, including homeowners who have filed a lawsuit, continue to press for full site plans and impact studies, as construction could begin as early as spring pending remaining approvals.