Aurora data center tax-incentive ban advances amid another failed push for a moratorium

AURORA | City council moved forward a prohibition on tax incentives for data centers built in the city, while again failing to reconsider a data center moratorium.

On Monday, council advanced a proposal to end tax rebates for future data center projects, but did not support a third attempt at reviving a pause on data center applications. 

The city attorney explained that under the council’s meeting rules, only a council member who opposed the Oct. 26 reconsideration could ask for the moratorium to be discussed during Monday’s meeting. None of the opposing council members — Rob Andrews, Françoise Bergan, Curtis Gardner, Stephanie Hancock and Angela Lawson — requested it be brought up. 

Mayor Mike Coffman continued to advocate for the moratorium, saying it’s important because the council is currently implementing new rules and the current regulations are inadequate. Coffman reiterated his plan to propose a new moratorium that would only need six votes to pass. 

The new moratorium would pause applications for data centers unless the facility has guaranteed service from an electrical utility. It is set to be on the Nov. 23 council agenda.

“You will see another moratorium at the next meeting,” Coffman said.

The move came amid numerous public speakers appealing for the city council to temporarily or permanently ban data centers in the city.

Although the moratorium was not voted on, council did move forward with a plan to end tax incentives for data centers during its study session. Coffman, who sponsored the proposal, adamantly supported it.

“I’m bringing it to the floor as is and if somebody else wants to have a discussion about process or procedure, you’re welcome to do that, but you will vote on this issue,” he told his colleagues. 

The prohibition would end the practice of remitting sales or use tax back to data centers in exchange for jobs, however it would not apply to existing agreements, according to the draft policy. 

The city has already committed to four incentive agreements, with a maximum total rebate of about $83 million. One of the incentive agreements is for the Trident data center, which could receive up to $39 million in tax rebates.

The center has been the focus of controversy and opposition primarily because of its proposed proximity to housing developments.

While the prohibition was ultimately supported by council, Councilmember Alison Coombs suggested taking a broader approach by looking at the city’s overall incentive policy. 

“We already have the ability to vote on every sales and use tax incentive that comes before council,” Coombs said. “I would ask that we send this back to committee and develop a general policy for council sales and use tax incentives that applies to all of the incentives, rather than specifically focusing on data centers.”

Coombs added that since the city is not currently considering any incentive agreements, she doesn’t see why the matter is urgent.

Bergan and Gardner said they also preferred a more general policy for incentives. Bergan added that she was generally in favor of the prohibition.

Despite Coombs’ suggestion, the mayor’s proposal received enough support to be on the Nov. 23 city council agenda.