City of Valparaiso Statement on Data Center
There is a significant amount of misinformation being shared over the last few days as to the potential construction of a data center in Valparaiso. The City is issuing this statement to provide accurate information and dispel some of the more egregious rumors being circulated.
To start, there is no data center project pending before the City of Valparaiso. There are no conceptual designs, engineering schematics, or other relevant information to which the City or any resident could review and develop a rational opinion.
On December 12, 2024 the Valparaiso Redevelopment Commission (“RDC”) issued a request for proposals to gauge interest in the 238 acres of land the RDC owns near the existing St. Mary Medical Center. This land was acquired for the development of a regional sports complex back in 2022. Due to excessive costs as well as a refocus on enhancing and upgrading the City’s many existing parks, the regional sports complex project was abandoned in 2023. As was stated at the December 12, 2024 RDC meeting, seeking proposals does not obligate the RDC to sell the property but might offer some insight as to its best use.
At the January 9, 2025 RDC public meeting, it was announced that Agincourt Investments, LLC (“Agincourt”) submitted a timely proposal. Agincourt would not commit to purchasing the RDC’s property but was willing to engage in discussions. To formalize the process, Agincourt proposed an option arrangement whereby if all their due diligence came back positive, they would move forward and negotiate a formal purchase agreement for approximately 180 acres in order to construct a data center. That said, Agincourt wanted some assurance that if they spent significant funds to investigate the property and secure the necessary approvals, they would have the ability to purchase the property. The RDC unanimously approved the Option Agreement at their January 9th meeting. This agreement gives Agincourt 180 days to complete their due diligence with the ability to extend the time period for an additional 120 days. To exhibit their seriousness, Agincourt agreed to deposit $50,000 with a title company. Of that amount $10,000 was nonrefundable and would be held by the RDC if Agincourt decided against purchasing the property for any reason. In addition, for every 30-day extension beyond the initial 180 days, Agincourt is required to increase their deposit by an additional $25,000. It is also significant to note that Agincourt is offering just over $9 million ($50,000 an acre) for approximately 180 acres. When the property was purchased in 2022, the per acre price was between $20,000 and $22,000 an acre. Moreover, Agincourt has not requested any tax abatement or other economic incentives from Valparaiso.
As outlined in the approved Option Agreement, there are several hurdles that Agincourt must overcome. As they have shared with the RDC, they are working with NIPSCO to confirm sufficient power can be brought to the site. They must also work with Valparaiso City Utilities on the availability of water as well as protection of existing test wells on the property. The property would need to be rezoned, which would require review by the Plan Commission and approval by the City Council. That process would address issues relating to building size, operational noise, light, and landscape buffering. Any data center project would be referred to the newly created Environmental Advisory Board to consider the environmental impact. There would also be negotiations with the RDC and Valpo Parks on walking paths and other public amenities to be incorporated into the site. Beyond that, the RDC and Agincourt must agree on an Economic Development Agreement as well as a Real Estate Purchase Agreement.
Should Agincourt present a project, the RDC would then conduct an economic analysis to determine what value their project could provide Valparaiso taxpayers and our schools. Washington Township schools receive annual discretionary grant funds from the RDC, so projects that increase RDC resources help ensure continued funding for Washington Township students.
For those living near the RDC property, it is understandable that you would have concerns. The City shares many of your concerns. Yet, since there is not a project to review, it is impossible to answer the many legitimate questions that have been raised. This is why the City was slow to speak publicly about the concept of a data center. That said, in addition to RDC members, the Mayor and all City Council members were briefed on the potential of a data center. Many of our neighboring cities and counties are engaged in the same process as the need for data centers has increased due to our reliance upon digital data and AI. The City would ask that residents maintain an open mind and participate in the robust public review process should the project move forward.