The Montgomery County Commission unanimously approved a resolution relating to a tax abatement agreement between the county and Amazon Data Services, Inc, the corporate entity for Amazon Web Services, which is involved with one of two proposed data centers in the county.

The approval followed a public tax hearing Dec. 18 where the commissioners hosted a presentation from AWS representatives as well as Mark Grimm from Gilmore & Bell PC, who drafted the cost-benefit analysis which serves as the frame for the agreement with AWS. The commissioners also held public comment regarding the proposed abatement as well as input from the local taxing districts who could possibly be affected by the abatement.

Grimm made the initial presentation, which closely followed the terms of the cost-benefit analysis previously submitted to the county. Grimm said Chapter 100 abatements is the same mechanism used for similar projects throughout the state. He said the county will take title to personal property assets belonging to Amazon at the beginning of the abatement period and will be returned to them at the end of the period. He said the approval of abatements is a two-step process, with the first part being approval of the plan cost-benefit analysis which is what was on the agenda for the Dec. 18 meeting. The second part of the process is approval of the definitive agreements with Amazon, which would be done at a future date. Grimm said there would be no real property tax abatement. He said the abatement would relate only to personal property and would depend on whether Amazon builds four buildings (the minimum scenario) or a total of 17 buildings (the maximum scenario). He added that the fire district and ambulance district have the right to opt out of the abatement and the cost-benefit analysis assumed those districts would opt out of the abatements.

Grimm said under the Chapter 100 structure, the county would have no risk as the transaction is merely a paper transaction and does not require the issuance of bonds.

After Grimm spoke, AWS Economic Development Manager Emily Smith made a presentation in support of the abatements.

Smith said AWS is “world’s most comprehensive and broadly adopted cloud computing company.”

She said AWS isn’t just artificial intelligence it is everything that involves the internet.

The proposed site is approximately 900 acres. Smith said the site would be the largest private investment in the history of Montgomery County with an initial minimum capital investment of $8.5 billion. She said construction would begin in 2026 with the first data center operational by 2027. She said the setbacks for the facility would be at least a quarter-mile from the nearest residence.

She said advantages to the data center include low traffic in and out of the facility when it is completed, tax revenue generation, high paying jobs and low strain on resources such as police and fire.

Smith said under the abatement proposal Amazon would be paying all of the real property taxes and a percentage of the personal property taxes. Over a 25-year period, she said Amazon would be paying a minimum of $326 million in taxes and a maximum of $1.5 billion, with total projected tax revenues ranging from $400 million to $1.8 billion. In comparison, the parcel currently generates only $8,000 in taxes per year, which amount to $200,000 over a 25-year period.

Smith said Amazon will be required to create 150 jobs to get incentives and that Amazon’s average salary for positions in the data center are $85,000.

Workforce development is also an important part of Amazon’s work in communities, Smith said. She added that partnerships with local schools and community colleges are part of that work, which includes paid pre-apprenticeship programs.

Smith also discussed some of the concerns from the community. She said AWS would only be using water seven percent of the year and is anticipating at full build-out of 17 buildings using 50 million gallons of water a year, which she said is the same amount used by a golf-course. She said the facility will be subject to Ameren Missouri’s recently approved large-load rates for electricity. She said the facility will also consider sound and light considerations from the community.

After the presentations, the taxing entities directly affected by the proposal were allowed to speak. Montgomery County R-II School Superintendent Brian White said he has been in education for 24 years. He said he has coached, taught and served as an administrator in schools on a shoe-string budget. He said based upon the tax revenue projections submitted as part of the Amazon plan the taxes for residents will go down.

“We will no longer be in the business of borrowing to pay for things,” he said. “We could compete with any district in the state when it comes to recruiting and retaining teachers...This is amazing, and I have to be an advocate for anything that produces this much future for kiddos, that’s why I got in the business.”

Steve Williams with the Montgomery County Ambulance District said the district board met Dec. 10 and chose to opt out of the abatement proposal. Williams said the board will evaluate potential needs from the project due to the increased number of workers on the construction site.

Developmental Disabilities Assistance Board of Montgomery County Executive Director Daniel Cole said that other projects that could go into the industrial site proposed for the data center could overwhelm the system, such as a business that brings in thousands of jobs at one time. Cole said the proposal is the “best bang for the buck.” He said the project would give those with developmental disabilities the best opportunities and that he is in support of the proposal.

The public was then allowed to speak with several local residents and those connected to various groups offering comments.

One audience member said the public still wanted more information and to put a hold on the project. She said she felt that local people are losing control of their community.

Scott Ramshaw with the Plumbers & Pipefitters 562 union said that they are for the Chapter 100 agreement.

Allegra Pritchett asked what would happen if the Missouri legislature does away with property taxes. After the public comment portion, Grimm said that it wouldn’t affect the agreement other than Amazon like other property owners would not have to pay property taxes, but they would also get no benefits under the deal.

Columbia-Jefferson City Building & Construction Trades Council President Matt Enloe, whose organization covers Montgomery County, said he was in favor of the proposed abatements as it would create tremendous life changing opportunities. His request of the commission was to use local workers for construction of the project.

Brian Graff with Operating Engineers Local 513 said his organization was in favor of the agreement and also requested that the county use local workers via project-labor agreements for the facility.

Lifelong Montgomery County resident Dave Johnson said he is a self-employed contractor and farmer who is in support of the agreement.

Another lifelong resident Tom Block said he was originally against project, but is now for it.

Montgomery County Collector Anita Sullivan said she does not support the data center and does not think the county should give any tax abatements.

“Are we in over our heads?” Sullivan asked. “Could this bankrupt the county in the long term?”

Sullivan said natural growth will happen along I-70 corridor and voiced concerns over use of natural resources.

Former Montgomery R-II Superintendent Tracy Bottoms said for the school district this project would be a game changer. It would allow the district to recruit and retain teachers.

Steve Eisenbath asked about the requirements that Amazon create 150 jobs and pay them 150 percent of the average county wage. He wants to make sure that is going to happen before there is any tax abatement.

Janice Eisenbath said she opposes the tax abatements and said she felt the commission should give residents more information before they approve any abatements for a company the size of Amazon.

Residents Avery Ridgley and mother Tammy Ridgley spoke against the proposed abatement. Avery Ridgley said she does not understand how the county is able to give an abatement without engineered plans and without listening to concerns from the residents. She urged the commission to say no to the abatement to protect local farmland.

Tammy Ridgley said she made her own trip to the Meta data center in Altoona, Iowa and spent three hours driving around and knocking on doors. She said after 13 years there is still construction in the area.

“Why are we giving a trillion dollar company tax abatements when they are going to impact our community more than you can imagine?” she asked.

Resident Jeremy Cox said what has been uncovered the last couple of months is a tangled web of special interest groups, conflicts of interest and closed-room dealings that have been designed to circumvent the will of the people. He said he felt government is teaming up against its citizens.

Jonesburg Mayor Bob Sellenriek said he feels the abatement and the project is a huge win-win for the community. He said the county’s resources including schools and law enforcement agencies need help badly.

Following public comment, the commissioners ultimately voted 3-0 to approve the proposed cost-benefit analysis as it related to the tax abatements.