Business Subsidy

Last Updated 6/30/2026

Following the abatement hearing on February 4th, 2026 the City approved an abatement of ~$36.5 million over a 28-year period. This $36.5 million would be reimbursed to the developer or operator over the agreed timeframe and would come from the $167.5 million of net new taxes generated. Ultimately, this leaves the City with ~$131 million in net new taxes over abatement term.

The City estimated the potential tax revenue based on a total of 9 light industrial buildings (data centers, warehouses, etc.) of equal size and 2 office buildings of equal size constructed over 8 years. Additionally, it assumes that the city’s tax rate of 82% remains unchanged throughout the 28-year abatement period.

To receive the tax abatement, the developer or operator have agreed to meet specific terms and conditions including:

• 38 new jobs for stage (building) 1
• New job creation will decrease by two jobs per stage until reaching a floor of 30 jobs per stage. This equates to 290 jobs, assuming 9 total stages (buildings)
• All jobs created will pay at least $31.00 per hour
• Contribute funds to a Community Betterment program for 28 years in the amount of $50,000 per year, with an increase of $5,000 annually.
• Contribute funds to a new Panther Program for the Pine Island School District in the amount of $500,000 per year for 28 years. The contribution will increase by $25,000 annually.

If the Operator fails to meet and maintain the Minimum Employment Goal for the period specified by Section 4.2 of the Agreement, then it will not receive any further Abatement payments, provided that the Operator may retain previous Abatement payments as constituting prorated partial performance under this Agreement.