Council reviews Prologis data‑center CRA, developer paid $2.7M in tap fees and pledged school payments

Trenton city staff on June 18 outlined a proposed Community Reinvestment Area (CRA) agreement and related compensation deal with Prologis for a planned data‑center development that the city says would include two initial data‑center buildings, each projected at roughly 200,000 square feet and part of a project estimated at a minimum $600 million.

Mr. Zipple, presenting the ordinance, told council the CRA proposal would provide a 15‑year exemption on 75% of qualifying new structures and that land remaining in taxable value would continue to be taxed at 100%. He described the CRA as an economic‑development tool under Ohio law and said commercial or industrial exemptions require council approval. “This is a requirement under ORC 709,” he said, noting council needs two readings and staff intends to file the petition in time for a July 9 second reading.

Mr. Zipple said the project is estimated to create at least 120 full‑time jobs and that the developer indicated a pledged annual payroll of about $5 million. He and other staff cautioned the $5 million payroll figure is the pledge used for the agreement and that actual payrolls for comparable data centers have often proved substantially higher after construction.

Finance Director Matthew Masiskos reported the developer has deposited about $2.7 million in water and sewer tap fees and that those funds have been placed in a city account to be applied to the city’s planned water‑tower construction. Masiskos said because the tap fees were paid up front and are invested for the project, the city does not expect residential water and sewer rate increases for the next five years that otherwise would have been required to service the related loan.

The compensation agreement described by staff is voluntary and separate from the CRA. Staff said Prologis agreed to $1 million in payments to the applicable school districts and $200,000 to the city’s water capital improvement fund. City staff explained the $1 million cannot be paid exclusively to a single district and will be split between Edgewood and Butler Tech; staff cited a split that leaves Edgewood with $940,000 and the remainder to Butler Tech.

Staff also confirmed an outdated tax‑increment financing (TIF) clause remained in the draft but said the city is not pursuing a TIF for this site and the clause will be removed before any vote. City staff noted the CRA agreement contemplates the first two buildings explicitly but that tap‑fee payments were provided for capacity for four buildings and already collected.

Council members asked for additional payroll details and documentation and requested staff bring more specific payroll and comparable project data to the next meeting. Staff said they would return with further documentation before any final action.

The CRA and the companion compensation agreement were on first reading and will next appear for a second reading at the July 9 council meeting.