FESTUS — A proposed data center here would create a "transformative windfall" of more than $10.5 million per year in new tax revenues for local schools, law enforcement and city services, officials say.
Officials call it a conservative estimate of real estate taxes on the 365-acre campus on the city's south side — and one that doesn't even include sales, personal property or electricity taxes.
Festus Mayor Sam Richards said the money represents a "generational-type change" for the city.
"It really boosts the city's ability to do a lot of different things for the citizens, not just for a year but for years into the future," Richards said on Tuesday.
The new estimates represent just the latest chapter in a months-long battle over plans by developer CRG to build a data center campus in Festus. The project was first announced in November and was quickly met with pushback from residents, who have since flooded City Hall with opposition.
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City consultant Steve Etcher presented the financial projections on Monday at a public meeting hosted by the city of Festus. Representatives from Jefferson College, the Festus School District and other local taxing districts also attended.Â
Festus schools, who did not respond to interview requests on Tuesday, would receive the most, more than $7.6 million each year, into a budget of about $50 million this year, according to January financial reports.
The city of Festus would get about $1 million into its roughly $20 million budget.
Jefferson College would receive an additional $592,000 and the ambulance district $226,000.
The figures didn't include taxes on construction or operations jobs, and were calculated on an estimated $1 billion project. Tax revenues would grow, officials suggested, if the project gets bigger.
The estimates also don't include construction or operations jobs, the city's 4.5% electricity tax, or, notably, personal property taxes — data centers are required to buy vast arrays of computer equipment and servers.
CRG, the ×îÐÂÐÓ°ÉÔ´´-based development arm of construction giant Clayco, has not submitted plans for the facility, but has already begun negotiating a deal with Festus.
Festus hired Etcher to help it negotiate an agreement, including possible tax incentives.
Incentives would reduce the total amount of tax revenues received by local governments.Â
"A lot of people, I think, might not completely comprehend the magnitude that a data center can represent within a community," Etcher said.
'Nothing is off the table'
At Monday's meeting, Festus school leaders and officials with Jefferson College discussed how schools could use the surplus funds to expand vocational training programs. County leaders said they could use their portion of the tax revenue to create a fund to help homeowners pay for upgrades to their septic systems.
City leaders said they could expand fiber optic internet throughout the city, build new fire stations, update the police department's fleet of patrol cars and even build a second overpass over Interstate 55 to help alleviate traffic congestion throughout Festus. Some officials expressed support for creating a permanent grant program — funded through tax revenues — for local organizations.Â
"Nothing is off the table until we take it off the table," Etcher said.Â
Festus residents had mixed reactions to Etcher's presentation.
Danny Lipina was impressed by the projected tax revenues. He believes even more tax revenue will be generated once construction begins with workers staying in local hotels and eating at area restaurants.Â
"The whole economy here is going to get a boost," Lipina said.
Karen Dudds left Monday's meeting frustrated. She said city leaders have never justified building the data center in a residential area.Â
"They never give you any answers," Dudds said. "They never explain anything. So I just stopped believing them, and started to not trust them."Â Â
Here's what you need to know about data centers in the ×îÐÂÐÓ°ÉÔ´´ area. Reporting by Bryce Gray, video by Jenna Jones.





