For Immediate Release — October 14, 2026
City Responds to Google Announcement Regarding Tax Abatement Agreement
Hermantown, Minn. – The City of Hermantown is pleased Google has heard the community’s concerns and announced their plan to no longer pursue tax abatement as an aspect of their proposed data center project.
Tax relief has long been a primary issue for residents across Hermantown and St. Louis County. With this change in approach by Google, the total property taxes generated are estimated at more than $240 million for the region over the next 20 years following project completion. This would include nearly $90 million for the City of Hermantown and more than $120 million for St. Louis County.
“I’m glad Google continues to listen to the needs of our community and region,” said Hermantown Mayor Wayne Boucher. “I am also happy they are working to find a way to still do a meaningful gift to our school district.”
Google said in its announcement it is exploring alternative ways to have a significant impact through gifts to the Hermantown Community Schools.
“Beyond the project itself, we know Google continues to work toward having a positive impact in our community, which we agree is a gift to our school district, but it will no longer occur through a tax abatement agreement with the City,” said Hermantown City Administrator John Mulder. “This will likely be a win-win scenario, with Google paying their full tax amount from the onset but still providing an unparalleled gift to our schools.”
The request for a Special Use Permit (SUP) for the project is on the agenda at Hermantown’s October 20 Planning and Zoning Meeting. The SUP and other associated agreements are set to be heard by Hermantown’s City Council at a dedicated meeting on October 26, following the Planning and Zoning Commission’s recommendation.
GOOGLE STATEMENT – LIZ SCHWAB, HEAD OF DATA CENTER MARKET DEVELOPMENT
- “We appreciate the collaboration with the leaders of Hermantown and the community on our data center project. One of the topics we discussed was a real property tax abatement, which directed funding to schools and other city projects. After extensive dialogue, we’ve decided to no longer pursue real property tax abatements and will instead work with leaders to find alternative ways to support the local school district.”
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For more information, contact Joe Wicklund, Communications Director, City of Hermantown, at [email protected] or 218.729.3600