A story that started with a wildly inaccurate post on social platform LinkedIn will get a new chapter later today when the members of Wheeling’s City Council consider the adoption of a Memorandum of Understanding with tech developer Silicon Foundry Energy LLC.
The MOU will be presented and recommended by City Manager Bob Herron during the regular meeting scheduled for 5:30 p.m. in City Council Chambers on the first floor of the Ohio County Courthouse.
“The people with Silicon have indicated that they were not going to seek high-impact data center certification under the state’s House Bill 2014 from the beginning,” Herron explained. “So, we had the idea of putting it in writing because, in the future, we may wish to expand our TIF district with that property included for future economic development somewhere in the city.
“So, our idea was that, since they’re not going to seek high-impact data center certification, that keeps the project under local (jurisdiction), so let’s get them to put that in writing,” he said. “In the event that we do a TIF district some day, an MOU takes House Bill 2014 off the table for the community, and it would give certainty that, in the event the city was to create a TIF district and issue bonds, it’s all covered with those tax dollars.”
Even though the City of Wheeling could develop a TIF district expansion without an MOU in place with Silicon, the legally binding agreement increases confidence among potential bond holders because it keeps under local control.
“An MOU would add a level of comfort for the TIF bond holders, and that always helps with the rates,” Herron explained. “What people might not realize is that House Bill 2014 does not permit TIF districts, so the fact this development will remain local is a plus for future development, too.
“So, the MOU is an effort to make sure they don’t seek that certification, and, in the event that city council does do a TIF district (expansion), we’ll have complete flexibility with that TIF district,” he said. “We all know that House Bill 2014 takes local control away, but this MOU guarantees it stays local and allows the city to potentially capture that investment.”
Andrii Garanin, the chief energy officer for Silicon Foundation, appeared before council for a question-and-answer session during the Mayor’s Report on August 11th. Two weeks later, the Upper OV United Facebook group hosted the “A Very Public Data Center Hearing” at Waterfront Hall.
“We have worked with Andrii and his attorney, David Croft, and we’ve worked on a tentative agreement that is subject to Council’s approval,” Herron said. “If Council does approve it, then it will be signed the new time Andrii comes back to Wheeling.
“After that,” he added, “we’ll see what steps they make to develop the site.”
