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I would like to address the concern that locating a data center within an existing Tax Increment Financing (TIF) district automatically qualifies it to receive TIF funds or tax breaks. Simply being situated in a TIF district does not grant a development eligibility for assistance.
First and foremost, a developer must file a formal application and a Financial Pro Forma to satisfy the legal “But For” test--proving definitively that the project is financially unfeasible without public intervention. That is clearly not the case with a data center. Furthermore, the potential buyer's testimony before the City Council explicitly stated that they had no intent of pursuing TIF.
When the data center developer presented to the city, they were simply asking for approval to purchase city-owned property within an industrial zone. They declared they were not seeking a TIF agreement, and they had not filed an application or a Financial Pro Forma to demonstrate financial need.
Our industrial zones were designated as TIF districts years ago to strategically encourage development and growth in Marshalltown. Those existing boundaries do not need to be rewritten or revised out of fear that a data center will be handed TIF financing, property tax reductions, or tax exemptions. The current protective mechanisms and application requirements are already in place to ensure public funds are handled responsibly.