MDC Meeting July 1, 2026: Data Center Zoning Ordinance (SU-47) Approved, Tax Abatements Granted
Metropolitan Development Commission Meeting – July 1, 2026
The Metropolitan Development Commission (MDC) held a public hearing on July 1, 2026, to consider a proposed zoning ordinance amendment (2026 AO001) creating a new Special Use District (SU-47) for data centers. The meeting also addressed several continuances, minor rezoning petitions, tax abatement resolutions for business expansions, and a resolution to redevelop an old fire station. After extensive public testimony, debate, and amendment votes, the commission approved the SU-47 ordinance by a 5–3 vote, sending it to the City-County Council for further action.
Consent Calendar
- Continuances:
- 2026 CVR 815 and 2026 CBL 815 (development at an unspecified location) were continued to July 15, 2026, by an 8–0 vote after a request from the petitioner and support from Councilor Andy Neils.
- 2026 REG 015 (412 West McCarthy Street / Chadwick Street) was continued to August 19, 2026, by an 8–0 vote (staff request).
- Withdrawal: 2025 ZON 114 (4005 East Southport Road) was acknowledged as withdrawn per staff email of June 24.
- No‑Appeal Petitions (5 total):
- 2026 ZON 035 (7323 South Mooresville Road)
- 2026 ZON 040 (2422/2430 Prospect Street)
- 2026 CZN 823 (4240 Bluff Road)
- 2025 REG 036 (22222 East Market Street)
- 2026 REG 035 (17 West 22nd Street) All were approved together by an 8–0 vote.
Public Comments & Testimony
Remonstrators (20 minutes total, presented by several speakers)
- Ashley Hooley (7115 Mendon Hall Road, Camby) – Representing a coalition of community groups. Argued the SU-47 ordinance is insufficient in six key areas:
- No size classification for hyperscale vs. small data centers.
- Setback of 400 feet from protected districts is too small; requested 1,500 feet for hyperscale.
- Noise limit of 55 dBA does not address low‑frequency noise (DBC measurement); health concerns from constant hum.
- No requirement for Tier‑4 diesel generators; pollution and conflict with carbon‑neutral goals.
- Potential heat island effects (1.5–4°F warming) and utility cost increases.
- Lack of meaningful public engagement; requested a moratorium citing 22 Indiana communities with active moratoriums.
- Julie Goldsberry (2804 Davis Road, Indianapolis) – Criticized the DMD’s use of the Delphi technique to limit public input; urged inclusion of community representatives in future drafting and hiring independent technical experts for noise standards.
- Robin Heldman (8824 Combs Road; president, Gateway Community Alliance) – Acknowledged improvements but requested five additions: wetland avoidance, decommissioning financial assurance, e‑waste management, building height transitions near neighborhoods, and mandatory host‑community agreements.
- Pat Andrews (7631 Reynolds Road, Camby; Decatur Township Civic Council, MCAN) – Noted that 10 dB change doubles perceived loudness; stated that the gravel/sand/borrow district already uses DBA and DBC, which can capture low‑frequency sound; raised concerns about diesel exhaust.
- William Smith (1120 North Berrook Avenue) – Autistic resident; said 55 dB near his property could force him from the city; cited heat from data centers as a concern; called for moratorium and better special‑needs protections.
- Alex McFarland (71 South West Street, Bargersville) – Expressed opposition due to impact on neighborhoods like Irvington where he volunteers; time expired before full statement.
City‑County Councilor Testimony
- Councilor Jesse Brown (District 13, 2022 North Riley Avenue) – Sworn in. Stated that many constituents believe the MDC is corrupt; urged the commission to adopt a moratorium to restore public trust, noting the unanimous City‑County Council resolution (SR 12‑2026) requesting a pause on data centers. Criticized the lack of notice for the hearing, the 20‑minute public comment limit, and the ignoring of council’s resolution.
Discussion Items
- Resolution 2026 R018 – Authorized DMD to cooperate with the Indianapolis Fire Department to redevelop the old Fire Station 32 at 834 East Westfield Boulevard (aka 6330 Guildford Avenue) via an RFP. Passed 8–0.
- Tax Abatement Resolutions (final ERAs) – All passed 8–0:
- 2026 A030 & A031: Aerodine Engineering LLC / Aerodine Real Estate LLC (1919 South Girls School Road) – 4‑year real and personal property tax abatement; $13.4M investment; retain 65 jobs, create 25 new at $40+/hour; tax savings ~$570,000. A letter committing to increase Marion County jobs was added to the record.
- 2026 A032: Olson Custom Designs LLC (6803 Kaufman Road) – 5‑year personal property tax abatement; $15M investment; tax savings $467,000; $23,000 contributed to an Indy Achieves grant.
- 2026 A036: Amendment to 2024 A040 (Olson, 4825 West 79th Street) – added $3M in personal property and 9 new jobs; same deadline (Dec. 31, 2029).
- Public Hearing on 2026 AO001 (Data Center Zoning Amendment) – DMD Director Megan Vukasich and staff presented:
- Proposed creating SU‑47 with I‑3 (medium industrial) base standards.
- Key provisions: 400‑ft setback from protected districts; 55 dBA noise limit (later amended to 65 dBA); 8‑ft berm and evergreen trees adjacent to protected districts; operations plan including noise study, water management, decommissioning; annual report; public dashboard for electricity/water/generator testing.
- Staff recommended approval with 11 amendments based on public feedback; read them into the record.
- Commissioner Questions – Commissioner Murphy asked about the applicability of I‑3 template, the permissibility of using variances instead of rezoning, the 400‑ft setback (compared to I‑3’s 200 ft), and the 55 dBA vs. 65 dBA (noting that many I‑3 uses do not have a specific decibel limit, but a city nuisance ordinance sets 65 dBA). Commissioner West raised low‑frequency noise (DBC vs. dBA), the feasibility of 55 dBA for data centers, and the need for expert testimony. Commissioner Lyle suggested higher setbacks and inclusion of community benefits in the public dashboard. President Dillon asked about grandfathering existing data centers and why I‑3 was chosen over I‑2. Staff answered that SU‑47 must have one base district and that I‑3 was selected for scale and transitional yard requirements. Commissioner West noted that ambient noise at a data center site measured 60–65 dBA, making a 55 dBA limit potentially unenforceable.
Key Outcomes
- Amendment Votes (on the SU‑47 ordinance):
- Sound Level: Amendment to change maximum permitted sound from 55 dBA to 65 dBA (with a direction to study DBC separately). Passed 5–3 (Yes: Morarity, Murphy, Robinson, Schumacher, West; No: Lyle; Dillon voted yes; Hergott and others not recorded in audio but roll call shows 5 yes, 3 no).
- Decommissioning Plan Deletion: Commissioner West moved to delete the decommissioning plan section entirely. Defeated 2–6 (only Murphy and Dillon voted yes).
- Grandfather Provision: President Dillon moved to allow existing constructed or previously approved data center uses to remain under their current base zoning district. Passed 7–1 (Lyle voted no).
- Final Vote on SU‑47 Ordinance (2026 AO001, as amended): The commission voted 5–3 to approve the ordinance, recommending it to the City‑County Council for introduction on July 6, with committee hearing on July 13 and final vote anticipated August 10.
- Next Steps: The ordinance now goes to the City‑County Council. The MDC chair noted that the council can further amend or reject the proposal.
Meeting Transcript
How do we give us a hug Development that happened just yesterday afternoon as well, which um requires some refinements to the site plan and um some additional commitments. We've um talked to staff about that yesterday afternoon. Kathleen has already worked very quickly to update the blurb. It would not require any new notice because it's a decrease in our requests related to the variance and and results in a number of positive things for um the neighborhood, including less megawatts, less generators, more green space, less square footage, and then phase two would no longer be speculative. So we'd uh love just a little bit of extra time to work on those updates and would request your favorable consideration for July 15th. Thank you. We have a request for 2026 C V R 815, 2026 CBL 815. Uh counselor uh Nielsen's here. I think you indicated you were fine with this request. Could you come up and go on the record for me, Counselor? I'd appreciate it. I know you've been working very hard on this. Uh thank you, President Dillon Commissioners. Um Andy Neels, City County Councillor District 14. Um the petitioner and the representatives have been in contact about a uh continuance for two more weeks. Uh, been working with the neighborhood and and leaders of that, and they're aware, so supportive of this continuance. Great. So we're looking at council of July 15th. Yes. We have before us is there anyone else who wants to comment on this? Continuance. Seeing none. We have before us requests for continuance on 2026. Excuse me. C VR 815, and 2026 CPL 815 to move to July 15th, 2026. I will make the motion to do so. Commissioner Robinson, can we get a second? Second. We have a second. Let me call the roll. Lyle. Lyle. Yes. Murphy. Murphy, yes. Robinson. Robinson, yes. Schumacher. Schumacher, yes. West. West, yes. Dylan is a yes. Counselor, you have an eight zero vote moving it to July 15th. Thank you. Any other special requests? Continuances. Kathleen, you're looking at me. Yes, I am President Dillon. 2025 Z O N 114, second amendment, located at 4005 East Southport Road. Staff received an email on the 24th of June withdrawing this request, and this would just require your acknowledgement.
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