Allies of Tonawanda Seneca Nation today will discuss report disputing benefits of data center
Press Release, Allies of the Tonawanda Seneca Nation
TOWN OF ALABAMA – Concerned local residents are calling attention to a new third-party report that undermines claims regarding the supposed economic benefits associated with a proposal from developer STREAM US Data Centers and its financial backer, multinational private equity giant Apollo Global Management, for a sprawling data center complex at the Western New York Science and Technology Advanced Manufacturing Park (STAMP) being developed by the Genesee County Economic Development Center in the town of Alabama.
The Applied Economics Center, a non-profit consulting group that offers expert services in the areas of energy, environment, consumer protection, and equity, reviewed the financial incentives application from STREAM for $1.46 billion in sales tax and mortgage tax abatements and produced a report (click here) that addresses the claimed costs and benefits for the local community. Concerned local residents will gather today at 12:30 p.m. at the Batavia City Center to draw attention to the report findings.
Among the report’s key findings:
STREAM does not provide any supporting materials for its cost-benefit analysis (CBA), which fails to meet standards expected in a public decision-making process and is insufficient to determine whether the proposed project would provide net benefits for the local community.
STREAM failed to address potential costs associated with the project, including: effects on property values, effects on tourism and recreation, utility bill impacts, public health impacts, the cost of public infrastructure required for the project, or the local disturbances associated with project development such as placing cables and fiber optic lines.
STREAM’s job creation estimates exceed values found in publicly available data and information, average publicly available estimates indicate that the proposed project would create about 4,100 fewer direct temporary jobs than the company claims, and 1,300 fewer indirect temporary jobs than the company claims.
STREAM has requested a local sales tax abatement and mortgage recording tax abatement, which – taken together – are worth 25 times more than the benefits provided by the proposed PILOT/Host payments. In other words: STREAM has requested tax abatements worth 25 times more than the promised benefits.
STREAM’s proposed data center may negatively impact local tourism and recreation, which are an integral part of the community and economy.
STREAM has submitted three CBAs to GCEDC. The CBA results differ substantially from one CBA to the next: total costs increased from $472 million to $781 million to $1.4 billion, and total benefits vary from $1.2 billion to $2.6 billion. STREAM has provided minimal documentation to explain or justify these differences.
The project would require 500 megawatts of electricity, approximately four times the total generation capacity currently operating in Genesee County (122 MW).
The STAMP data center proposal from STREAM and Apollo has faced strong local opposition. More than 300 people attended a March 19 public hearing on the requested financial incentives package. Over the course of more than 5 ½ hours, only two speakers expressed support for the data center proposal.
Due to a glitch with the livestream and videorecording, the hearing did not qualify as the legally required public hearing pursuant to Article 18-1 of the General Municipal Law. GCEDC has scheduled a supplemental public hearing for April 16 at 4 p.m. at the Town of Alabama Fire Hall and extended its written comment deadline to April 17. The Town of Alabama Planning Board will hold a public hearing on the Site Plan Application from STREAM on April 20 at 6 p.m. at the Alabama Fire Hall. Both hearings are open to all members of the public.
