Commissioners approve tax break

By Anthony Collins

LPR Editor                       

   A proposed data center, and the tax incentives tied to it, took center stage at the Caldwell County Commissioners Court meeting on March 26, sparking debate from both residents and county officials.

   In a split vote, commissioners approved a tax abatement agreement with EDC Austin LLC for a massive data center project planned near State Highway 142. The project, estimated to bring billions in investment, promises high-paying jobs, but not many of them. That trade-off didn’t sit well with everyone.

   “You’re not offering the citizens of Caldwell County tax abatements,” resident John Castillo told the court during public comment, questioning why corporations receive incentives while residents are expected to pay in full. He also warned that fast-changing technology could make the project obsolete long before the tax break expires. Despite those concerns, most commissioners said their hands are tied.

   County Judge Hoppy Haden and others emphasized that the county has limited authority to regulate projects like data centers. 

In many cases, they said, tax abatements are the only tool available to negotiate terms, including reducing water usage through more efficient cooling systems.

   Still, not everyone was convinced. One commissioner voted against the agreement, pointing to the relatively small number of jobs expected compared to the scale of the project.

   While the tax abatement was approved, a related development agreement for the project was tabled for further discussion, signaling that negotiations are far from over.

   Away from the data center debate, another issue struck a different tone, support for vulnerable children in Caldwell County.

   Representatives from the Hays County Child Protective Board told commissioners they’ve been helping fill a gap in Caldwell County, which currently does not have its own child welfare board. Over the past few years, they’ve provided everything from emergency supplies to financial assistance for families in crisis. But demand is growing, and resources are stretched thin. 

    The group requested $30,000 in funding to help get through the current fiscal year, with future needs expected to rise to around $50,000 annually. Commissioners appeared receptive, with plans to revisit the request in an upcoming meeting.

   The court also handled a range of additional business throughout the morning. A countywide burn ban remains in place due to high fire danger. 

     Several development-related items, including subdivision plats and infrastructure requests, were approved. Commissioners also approved a $30,000 budget amendment to cover outside legal services tied to a capital murder case, along with contracts to improve county IT operations and maintenance systems.

   Commissioners acknowledged the tension between attracting large-scale investment and protecting community resources, especially water and infrastructure. As one commissioner noted during discussion, county government is often left choosing what feels like the least bad option.