Who Authorized the Data Center Giveaways? We’re Demanding Answers from City Manager Robby Hammond

The Real Story – A Column

Today, I have issued to the City of Hillsboro a FORMAL NOTICE OF STATUTORY NON-COMPLIANCE, ADMINISTRATIVE BAD FAITH, AND DEMAND FOR INDEPENDENT EXTERNAL AUDIT in regards to the data centers Enterprise Zone Tax scandal that has rocked our community. I am sharing that letter, which I, as a 60-year resident of our town and community leader, sent to Hillsboro City Manager Robby Hammond demanding immediate action against his Economic Development Director, and I am warning him of potential violations of State and local laws, and the potential for fraud and dealing in bad faith.

This letter stems from the unbelievable news that came out on Monday: Hillsboro Economic Director Dan Dias signed multiple Enterprise Zone agreements with data centers, giving them hundreds of millions in tax breaks from now through as late as 2050.  That letter has us all fired up, sure.  But today, after the concerns were raised, we found out that Dias has executed an additional 10-15 agreements since the news broke.  The map below shows the new commitments in blue, and the red markers are Monday’s Tax Giveaways.

The letter calls for:

•  An immediate cessation of all actions by the City on these contracts
• An outside Audit of Dan Dias and the Hillsboro Economic Development Department, and anyone else who negotiated or worked on them,
• A full review of violations of State and local laws and the potential for fraud that may be occurring.

Specifically, the Hillsboro Herald is investigating whether the City is engaging in a sophisticated form of “fiscal extraction,” taking wealth that belongs to the broader community (the “taxing pie”) and carving out a private “fee pie” that only the City of Hillsboro is allowed to eat.  As a resident, business owner, and journalist, I am aware that others may take action, but I am not certain that anyone is.  Therefore, I am notifying City Manager Hammond, Mayor Beach Pace, Attorney General Dan Rayfiled, and the Governor’s office.  The letter I have sent makes very specific claims that ask for a review of all State and Local laws.

You may read my letter in full right here:

Letter to The City of Hillsboro – Robby Hammond

Here are the five “Red Flags” that every resident, parent, and taxpayer needs to understand about how your future tax dollars are being handled.

1. The “Revenue Desert” (Starving Our Schools)

• By using a “Rolling Chain” of contracts, the City has locked in tax exemptions for some data centers until 2051.
  • The Impact: While the Hillsboro School District faces a $20 million budget shortfall and Washington County faces a $20.5 million gap, these billion-dollar facilities will pay $0.00 in regular property taxes for the next quarter-century.
  • The “Orphaned” Agencies: It isn’t just schools. Tualatin Valley Fire & Rescue, PCC, Metro, and the Port of Portland are all being denied their share of tax revenue while being forced to provide services to these massive industrial sites.

2. Financial Self-Dealing (The “Claw Back”)

• The City uses a “Community Service Fee” (CSF) to replace a portion of lost taxes.
  • The Catch: Under current City rules, Hillsboro “claws back” 100% of these fees to fund its internal budget.
  • The Conflict: Because the City doesn’t have to share these fees with the School District, the County, and others, Hillsboro might actually make more money from these private fees than it would from regular shared taxes.  We can not find out, as the City wants us to pay a king’s ransom to review the Community Service Fee agreements.  This enriches City Hall while leaving sister agencies with nothing.

3. The “Ghost Job” Violation

• Oregon law (ORS 285C.200) states that these tax breaks are meant to create jobs for the community.
  • The Reality: Several of these deals—specifically with STACK and Digital Realty — authorize massive exemptions for facilities that create few permanent jobs.
  • The Cost: In some cases, taxpayers are subsidizing these companies at a rate of over $726,000 per job created.

4. Exceeding Legal Authority (The 2028 Sunset)

• Hillsboro’s authority to grant these tax breaks comes from a specific “Enterprise Zone” designation that legally expires on June 30, 2028.
  • The Overreach: The City is signing contracts today that guarantee tax breaks through 2051. The Herald argues that City officials lack legal authority (Ultra Vires) to promise tax breaks for a program that may not even exist two years from now.

5. The Demand for a Forensic Audit

• The Herald and I have formally demanded an independent external audit of every agreement signed since February 2026.
  • The Goal: We are calling for a full review of all emails and texts between City staff and the corporate owners of these data centers.

Questions: Did the City satisfy the mandatory 21-day public notice period? Were the County Assessor and School District Superintendent actually informed of these 25-year deals, or were they left in the dark?  Do they understand how much the City of Hillsboro makes while they all have to go without?

The Bottom Line: The Hillsboro Herald is investigating whether City Hall is engaging in “institutional extraction” by rushing through long-term agreements, taking wealth that belongs to the entire community, and carving out a private “fee” that only the City may spend.  If it is, this is bad faith, and there may be elements of fraud in situations like this, whether intended or not.  We believe these contracts with these data centers are being shoved through at a record pace.  The letter contains multiple other legalistic and procedural elements rooted in Hillsboro’s and the State of Oregon’s laws.

The Public Challenge:  Mayor Beach Pace and Council President Rob Harris, what are you doing?  Will you take action and demand accountability?  Will you publicly address this situation, or will you allow the residents of our Community to be uninformed and without action on your part?  You Must Take Action Or In The Public’s Eyes, You Own This!

My letter has been sent to all of them and made available to you all.  Friends and Neighbors, we are at Ground Zero, and our town is being sold off!

Stay tuned to the Hillsboro Herald for updates on the City’s required 72-hour response.  Comment below.  Email the City Council, email the City Manager, email the Mayor.

https://www.hillsboro-oregon.gov/our-city/departments/city-manager-s-office/hillsboro-101/contact-the-city-council

Robby.Hammond@hillsboro-oregon.gov

Beach.Pace@hillsboro-oregon.gov

Rob.Harris@hillsboro-oregon.gov

Here are the contracts the City has signed as of today

 

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