By 1000 Friends staff & partners | 4-minute read
Local leaders call for Hillsboro Mayor Pace and the Hillsboro City Council to stop giving public dollars to data centers
HILLSBORO, ORE. — In response to growing concerns and unanswered questions about the impacts of data center development, 1000 Friends of Oregon has partnered with local leaders, farmers, businesses, and other organizations to sue the City of Hillsboro. Plaintiffs are represented by Jesse Buss, Willamette Law Group, PC; Eve Goldman, 1000 Friends of Oregon; and Eric Wriston, Crag Law Center. The petitioners allege that the city, along with Washington County, improperly issued key approvals needed for property tax breaks associated with 17 data center applications.
To date, Hillsboro has given hundreds of millions of public dollars to subsidize data centers, resulting in higher water and energy bills, teacher lay-offs, school closures, and serious threats to pave over watersheds and local farms. A new estimate from Dirk Knudsen, editor of the Hillsboro Herald, indicates that Hillsboro has given an estimated $71.0 million–$75.5 million annually in real property taxes on active data center building shells and an additional $46.3 million–$49.4 million per year in tangible personal property taxes being systematically abated. In total, citywide tax giveaways amount to $117.3 million–$124.9 million annually.
“As a farmer in unincorporated Washington County, the decision of the City to sign rolling Enterprise Zone agreements that extend for decades is extremely concerning,” said local farmer and plaintiff Jacob Roloff. “I have no electoral say in those representatives, and yet their choices will affect the funding for schools that my son will soon attend, as well as other county services. As I understand it, none of these lines up with the original intent of the program, and it directly affects me without representation.”
Data center businesses are increasingly pursuing development pathways that sidestep land use processes, limit public participation in land use decisions, reduce or avoid paying fair property taxes or public infrastructure, and receive public funding from grants, loans, and/or direct subsidies. Oregonians are raising concerns about these data center deals because of the immediate and long-term impacts to statewide education funding, local communities, and public services.
“I want the government to invest in schools, not data centers,” said local school board member, community leader, and plaintiff Dr. Tammy Carpenter. “Schools are closing and students are struggling. On the school board, I saw the impact of giving tax breaks to corporations instead of investing that money in local public schools. I am not surprised that the community is fighting against more corporate handouts.”
This case challenges the legality of several of these applications. The litigation was brought as a writ of review proceeding in Washington County Circuit Court, challenging 17 Hillsboro Enterprise Zone (EZ) Applications approved by the City of Hillsboro under the Oregon Enterprise Zone Act (ORS 285C.045-285C.250). The majority of the applications propose to extend the property tax breaks for data centers beyond the year 2032; some of the applications proposing to extend up to the year 2051.
“I am formally challenging the EZ Program for subverting its goal of alleviating economic hardship,” said community leader and plaintiff Kipperlyn Sinclair. “By linking affluent industrial areas with lower-income neighborhoods, the program exploits a loophole to grant massive public subsidies to data center corporations without actually uplifting the vulnerable communities used to justify the tax breaks.”
See a recap of this community rally and see a recap of this successful grassroots effort.
1000 Friends launches new campaign to support grassroots efforts
As data center development accelerates, more and more of Oregon’s irreplaceable farmland is being sacrificed, water is taken from our drinking sources, and permanent pollution could increase. Communities and local governments are also navigating complex applications and approval processes that can move quickly and carry significant long-term fiscal consequences.
1000 Friends is raising $75,000 to establish initial capacity for their new Data Center Reform Fund, which will support communities navigating complex land use, development, and tax-related decisions with long-term public consequences. Contributions can be made at friends.org/donate; the site includes options to donate to specific campaigns, including the Data Center Reform Fund.
“I’ve farmed north of Hillsboro and east of North Plains for a dozen years now,” said local farmer and owner of Stoneboat Farm Aaron Nichols. “Through that time, I’ve watched as good farmland is paved over for many shortsighted uses. But in the last five years I’ve seen the pace of the loss change to an all out sprint to accommodate the ‘needs’ of data centers. Meanwhile, my two children are in one of the oldest schools in Oregon. The parents fundraise every year for everything—from school supplies to field trips—and while local businesses such as mine pitch in, not once has a data center or any associated business donated to the school.”
Additional resources
- For a full list of the plaintiffs and the complaint, please visit this link.
- For photos, please visit this link.
About 1000 Friends of Oregon
Founded in 1974, 1000 Friends is a 501(c)(3) nonprofit advancing a long-term vision for Oregon’s wealth, Oregon’s future—our land, our people, our work. We work alongside Oregonians, local businesses, and community partners to protect and grow what makes this state special and what cannot be replaced, ensuring a high quality of life for current and future generations. Learn more at friends.org.
