City of La Porte, Microsoft, and La Porte Community School Corporation host press conference to announce financial update

On Tuesday, March 3, city officials and members of the La Porte community came together to discuss a financial update between the City of La Porte, Microsoft, and the La Porte Community School Corporation.

This financial update includes the approval of an updated tax agreement for Microsoft’s datacenter project in La Porte. The decision was approved following the La Porte Community School Corporation Board Meeting. Mayor Tom Dermody is excited that this project of nearly two years is finally coming into fruition.

“Today will go down in history as a day that forever changed the future of our community and our schools,” Dermody said. “Back in June of 2024, we announced Microsoft’s plans for a new date center. It was a $1 billion investment in our community. We’ve forged an incredible relationship and worked closely with their team to ensure this data center projects strengths for our city and our future.”

In January, Microsoft President and Vice Chair Brad Smith announced that the company will no longer seek local property tax abatements or breaks for its new data center projects, despite the completion and approval of the previous agreement. In recent weeks, Microsoft has worked with the City of La Porte officials to create a solution that ensures Microsoft pays its full and fair share of the local property taxes.

“The City of La Porte Redevelopment Commission will allocate 15% of this revenue to the La Porte Community School Corporation for a period of 20 years,” Dermody said. “This is an unprecedented partnership that is creating a historic revenue system to benefit local families and students for generations to come.”

Dr. Sandra Wood, superintendent of the La Porte Community School Corporation, appreciates all the support for this project that will have a valuable impact on the city school district.

“This resolution marks the final step in formalizing this partnership,” Wood said. “I want to extend our sincere appreciation to Mayor Dermody, Bert Cook, the City of La Porte, the La Porte City Redevelopment Commission, and the La Porte City Council for the vision, support, and commitment to our school district. Without their leadership, this partnership would not be before us today.”

Mike Stockwell, land development and permitting program manager with Microsoft, believes the collaboration within the La Porte community has been an ideal investment for the global tech company.

“Microsoft is proud to be a part of the La Porte community as part of our company-wide commitments to the communities where we’re building and operating cloud and AI infrastructure,” Stockwell said. “We’re committed to being a good neighbor, and we’ll pay our full and fair share of the local property taxes, adding revenue to local towns and cities.”

This project has overcome many obstacles along the way, but it has reached a point now where the vision can be seen, felt, and appreciated by people throughout the La Porte community.

“This was a choice that the mayor led, and the city willfully accepted and followed,” said Ryan Seaburg, president of the La Porte Community School Corporation Board of Trustees. “This vision to help the schools is appreciated by everyone in our community.’

Following the agreement being approved by the Redevelopment Commission and the La Porte Community School Board, many city officials are optimistic about the next steps this project will take to benefit the residents.

“Today is just one of those special times that we must acknowledge and celebrate the moment,” said Bert Cook, executive director of the La Porte Economic Advancement Partnership (LEAP). “Whether you call it historic or unprecedented, there is no doubt that this announcement is one that will create a new and better future for La Porte.”

For more information on the City of La Porte, you can visit cityoflaporte.com.