Saline Township reverses vote to limit Oracle's data center tax break
On Saturday, the Saline Township Board of Trustees made a major move by reversing its agreement to limit Oracle's requested tax break on its hyperscale data center.
The 250-acre data center, built in partnership with OpenAI, was originally projected to cost $4.8 billion, a figure which has since grown to $43 billion.
Oracle's original request for a 12-year, 50% tax break was curtailed by the Board of Trustees last Tuesday, as they unanimously voted to restrict the tax break to the project's original $4.8 billion valuation following fierce pushback from community members.
However, that agreement only lasted three days after attorney David Landry warned Board members during a special meeting that the township would be sued and lose under Michigan's Industrial Facilities Exemption Act, commonly known as Act 198.
Landry asserted the tax break, capped at $4.8 billion, was a violation of the 2025 consent judgment, which finalized the settlement between the Township and Related Digital, the development company behind the data center's infrastructure.
Related Digital sued Saline Township last year after it initially denied a rezoning request for the data center's construction.
He advised the trustees to amend the agreement made during the previous board meeting and approve Oracle's original application, which was submitted on May 18.
"What happens if you don't do that? You're going to get sued," Landry said. "You're going to get sued for violating consent judgment, and you're going to get sued for violating Act 198, and you're going to lose."
He warned the trustees that they would not only be subject to attorney fees and costs, but also to more than $1 million in costs related to construction delays.
"If you don't agree to this, and this project gets delayed, there's what's called consequential damages," Landry said. "Those consequential damages are easily going to be an excess of a million dollars. You're going to expose the residents and the Township to significant damages if you don't correct this."
Trustees voted to approve the amendment before holding public comment, which triggered audience members to boo and yell "shame."
Yousef Rabhi, democratic candidate for Ann Arbor mayor and Washtenaw County Commissioner, spoke during public comment to encourage the Board to listen to their constituents over corporations.
"We'll try to get the money together to help this township defend itself against the behemoth that is Oracle," Rabhi said. "We want you to be courageous, we want you to do the right thing. I really encourage you to stand strong, to stand firm and to stand up for your community."
Many community members who spoke during public comment expressed disappointment at the trustees' vote while also sympathizing with the pressure they face.
A GoFundMe to support Saline Township's potential legal battles following its July 14 decision to limit Oracle's tax breaks has raised over $5,000.