County Votes on Data Center Abatement

GRAHAM — Young County Commissioners took another step toward negotiations over the proposed Project Saltworks data center campus on Aug. 10, formally receiving a tax abatement application from the project’s developer while opponents again urged county officials to slow down or reject incentives altogether.

About a dozen residents attended the Commissioners Court meeting at the Young County Courthouse, where several questioned why a multibillion-dollar development should receive a tax break and asked commissioners to wait until the Texas Legislature has an opportunity to consider new regulations governing large data centers.

The court went into closed session to confer by telephone with attorneys regarding Project Saltworks before returning to open session. County Judge Win Graham then announced that the county had received Headwaters Site Development’s tax abatement application and said he would turn it over to the county clerk to make it a public document. The agenda item itself required no vote.

Commissioners did vote 5-0 to ratify a separate escrow agreement under which Headwaters will provide $250,000 to cover the county’s costs for consultants as it evaluates the project.

The actions came after residents used the public comment period to press commissioners for more information about the massive development and its potential effects on neighboring property owners, roads, emergency services, water and the environment.

Karen Brewer questioned why a company capable of financing such a large project should receive an abatement while longtime residents continue paying taxes on their homes and property.

“Why are they getting a chance at an abatement?” Ms. Brewer asked. “If they don’t get an abatement, are they gonna go away?”

Ryan Mote asked commissioners to conduct independent environmental, traffic, soil and water studies and to develop long-term projections showing both the costs and benefits of the project. He also requested baseline light and noise measurements at neighboring properties and an analysis of potential demands on fire departments, EMS and other emergency services.

Mr. Mote particularly urged commissioners not to hurry negotiations while state officials are examining the rapidly expanding data center industry.

“There’s no reason to rush this process,” he

said. “There’s no reason to push this thing through before the state of Texas has legislation put through to protect us without an abatement.”

Another speaker similarly urged the county to wait for the upcoming legislative session, arguing that Project Saltworks could proceed without receiving a county tax incentive.

Residents also pressed Judge Graham for an update on several concerns he had raised earlier this year, when he said his support for incentives would depend on the project’s benefits materially outweighing its costs and on the developer reaching an agreement with the City of Graham that produced a meaningful benefit for the city.

One resident also questioned the environmental information provided to the county so far, describing a previously released report as largely a history of the property rather than an assessment of the data center’s potential impact. Judge Graham acknowledged the county wants additional information.

“I think more is coming,” Judge Graham said. “I want more to come.”

The receipt of the abatement application does not mean commissioners have approved a tax abatement for Project Saltworks. Rather, it puts the developer’s request into the public record as the county continues its due diligence and negotiations over what has become one of the most closely watched development proposals in Young County.

Residents at the meeting complained that Project Saltworks has not speficied the conditions of the abatement it is seeking, and has not disclosed its entire environmental impact report as of yet.

Commissioner Alan Craig said after the meeting that the request for an abatement did not contain any specifics, but that the Court would know more at when it convenes again on Aug. 17 to start considering it.

“There’s no meat in the sandwich right now,” he said. “That will likely change starting next Monday.”