In a decisive move reflecting community sentiment, Port Washington voters have empowered residents with increased control over local development incentives, particularly concerning large projects. This decision follows the approval of a referendum on Tuesday, which was supported by approximately 66 percent of voters, according to unofficial results from Ozaukee County.
The referendum’s passage comes amid significant public opposition to the city’s earlier approval of a tax incremental district for a multi-billion-dollar data center project. Now, any substantial development incentives will require voter approval. Great Lakes Neighbors United, a local community group, applauded the initiative, lauding it as a step toward “transparency and public participation.”
Across Wisconsin, there is growing discomfort with the swift rise of data center projects, as illustrated by recent polling and widespread local resistance. Charles Franklin, director of the Marquette Law School Poll, noted that the decision in Port Washington aligns with statewide public sentiment.
“It doesn’t look like this is peculiar to the Port Washington area, though, of course, they do have active data center construction in that area,” Franklin remarked. Since October, the percentage of voters who believe the costs of such projects surpass the benefits has jumped from 55 percent to 70 percent, as per February’s Marquette Law School poll. This sentiment was echoed in March, with 69 percent of voters expressing similar concerns.
The March poll revealed that 62 percent of Republican voters, 69 percent of independents, and 77 percent of Democrats feel the drawbacks of data centers outweigh their advantages. While data centers promise job creation and increased tax revenue, concerns about their water and energy consumption remain prevalent, Franklin explained.
The issue is expected to play a significant role in the upcoming gubernatorial and state legislature elections. Franklin noted the Republican frontrunner, U.S. Rep. Tom Tiffany, has shown “some skepticism” about data centers, aligning with the majority of Democrats who oppose these projects.
Franklin further suggested that there might be more local referendums on data centers, especially given the lack of statewide regulation. In November, Janesville voters will consider a similar initiative requiring public approval for projects costing over $450 million on a former General Motors site, which the city plans to develop into a data center.
Details of the Port Washington Referendum
The recently approved ordinance in Port Washington mandates that future Tax Incremental Districts (TIDs) with project costs or a base value exceeding $10 million must secure voter approval before proceeding. This initiative arose after the city council’s decision to create a tax increment district aimed at a massive data center campus.
Christine Le Jeune, a founding member of Great Lakes Neighbors United, highlighted that the city council’s TID approval led to community dissatisfaction, emphasizing the need for broader public involvement in significant financial decisions.
“This should not be single-handedly decided by a handful of representatives who are failing to meet the community where we’re at with all the questions that we have about this financing, how that will impact us and whether this is something that will truly benefit the community,” Le Jeune stated.
Earlier this year, business groups filed a lawsuit against Port Washington, contesting the ordinance’s legality. The lawsuit argues that the ordinance could hinder economic development and harm employers. The city’s response also expressed legal concerns.
While Mayor Ted Neitzke did not comment on the referendum, the Metropolitan Milwaukee Association of Commerce, one of the plaintiffs, expressed that the ordinance poses “serious legal and economic concerns” and deters investment.
In February, a judge refused to block the ordinance from going to referendum, allowing Great Lakes Neighbors United to intervene. The court stated it was inappropriate to halt an election or rule on an unenacted ordinance. A scheduling conference is planned for April 16 at the Ozaukee County Justice Center.
“Now that the referendum has passed, it will be revisited as we suspected it could be. That was the indication based on the last hearing,” Le Jeune noted. “I just hope that the judge will take into consideration the overwhelming support that this does have.”
The ordinance will not impact the TID previously established for the data center project, though Great Lakes Neighbors United has filed a separate legal challenge against it.
