Committee hears Smithfield Gateway TIF update as residents raise concerns over tax-exempt uses and possible data center impacts

Attorney Brown briefed the committee on the Smithfield Gateway tax-increment financing district and compared what was originally presented in the TIF plan to what has been constructed and taxed.

"At that time, the proposal was that there would be apartment buildings...based upon what they intended to build they were saying that school taxes would go from $97,000 a year to ... over 1.1 million," Attorney Brown said, and then noted current receipts from roughly 92 acres of the TIF are about $230,000 for the year — well below original projections.

Board members and the attorney discussed the structure of the TIF: the district agreed years earlier to dedicate 79.5% of the incremental increase to repay infrastructure financing (roads, utilities, stormwater) and that the redevelopment authority collects and distributes the funds. Committee members raised that some of the development has come online as tax-exempt uses — including hospital campuses and university-owned properties — which reduces the taxable growth the district expected.

Residents and commenters pressed the board on what would happen if the developer seeks an amendment that changes intended uses. Public commenter Eduardo Peda asked when an amendment would be required and how the board would handle public engagement. Attorney Brown replied that an amendment, or a dissolution of the TIF, would require separate approvals from Smithfield Township, the county and the school district, and that the board’s decision would be focused on the financial implications rather than land-use approvals.

Several residents expressed concern about a possible data center at the site. Bruce Seeden warned about utility demands and water usage, stating in public comment that a 500,000-square-foot data center could use "3 to 5 million gallons of water per day," and questioned whether the district and township had accounted for such utility and fiscal impacts. Committee members and staff responded that zoning and utility "will-serve" approvals belong primarily to the township and utility providers, and that the district would evaluate amendments from a fiscal perspective if or when they reach the board.

No decision was made; staff said the board will review any formal amendment only after it completes local zoning and township-level processes.