KUNA, Idaho —
This story originally appeared in the Idaho Press.
A new water treatment plant isn’t the only investment Meta, the parent company of Facebook, is making in the city of Kuna with its controversial new data center going in.
A one-time mitigation payment of $8.2 million will go toward funding services that rely on property taxes as a main source of support — mainly the Kuna Police Department, which is contracted out to the Ada County Sheriff’s Office — according to the contract between the city and Meta. This payment will go into the city’s general fund.
Meta is working through a limited liability company named Brisbie — which is a shell company owned by Foxtrot Acquisition Corp. of Delaware, according to BoiseDev — in its contracts with the city.
“They’re making a substantial investment in our police department that will help carry us through so that we can enlarge our police department and add more officers,” Kuna Mayor Joe Stear said.
According to the contract, the reason these services need additional support in the growing community is because HB 389, which was signed into law in January 2021 and caps taxing districts’ budget increases from property taxes at 3% and an additional 5% for new construction, “may negatively impact the City’s ability to fund City Property Tax-Supported Services.”
Since its passage, the controversial bill has vexed mayors of growing cities around the Treasure Valley and even led to a 120-day building moratorium in Caldwell last year, as previously reported by the Idaho Press.
Sums from the 8.2 million will be allocated to the police budget on an annual basis for the next 21 years, per a memo from Kuna Economic Development Director Morgan Treasure to the Kuna City Council on Dec. 7. But Kuna City Clerk Chris Engles said the exact breakdown of this money influx hasn’t been budgeted out yet, and the city doesn’t know when it will be. The city doesn’t have the money yet but will once the first building permit on the property is issued.
The Kuna Rural Fire District also negotiated a separate deal with Meta through Brisbie.
The data center site is located outside of fire district boundaries, and rather than annex the site, KFRD spokesperson Krystal Hinkle said the fire district decided to enter into a service agreement with Meta to avoid a tax funding cutoff due to HB 389. According to the contract, the fire district is “very dependent” on property taxes to fund its operations. Hinkle said the bill only allows taxing districts to take 90% of property taxes received from new construction, taking away 10% of the total amount that would have been collected. Even so, the increase on 90% for 2023 would put the district over the 8% budget growth allowance by .41%.
“House Bill 389 was a huge detriment to local government, especially for those experiencing growth like Kuna,” Hinkle said. “The state Legislature chose to almost punish, actually, local districts by saying, ‘Hey we know you’re dealing with growth but we only are going to allow you to take a percentage of it.’”
The first year of the contract, which started on May 31, Meta will pay the fire district a base contract service fee of $162,000. The following year, the district will receive $324,000 and every year following the base contract service fee will increase annually by a rate of 3% assuming there are no new expansion projects on the data center site.
Hinkle said Meta also agreed to pay impact fees to the district even though it was not obligated to.
These funds will provide for three additional firefighters to be hired for the district which, in the words of Fire Chief T.J. Lawrence, is “struggling” and has staffing levels that are “not safe for our community or its firefighters.”
Recently, Capt. Matt Coffelt said a past shift rotation only had three firefighters on duty to service the 30,000 people who live in the district, as previously reported by the Idaho Press. And emergency call volumes in the district have increased by 72.42% in the past 10 years, according to a press release from the district. Between 2010 and 2020 the city’s population grew by 36.7%, according to U.S. Census data. The fire district also serves people living in the surrounding area outside city limits.
Stear said the Meta funding is a good sign from the company whose arrival in Kuna has drawn the ire of many residents. Distaste for the project stemmed from multiple areas including worry about local businesses losing workforce, anger over Facebook’s platform policies and perceived politics; and concern about the data center’s water use. Many were taken off guard by the announcement and feel that the company does not align with the small town’s values, according to emails obtained by the Idaho Press.
But Stear remains hopeful about the presence of Meta in his community.
“They’re already investing in the community so I hope that there’s gonna be — I think there will be some good things from it and hopefully the good things will far outweigh the bad things,” Stear said.
William Marks, the community development regional manager for the project, said Meta wants the community to benefit from its presence.
“We don’t just work here. We live here, too,” Marks said. “And we are neighbors and part of the community and if the community thrives long-term, it’s for everyone’s benefit.”
This story originally appeared in the Idaho Press. Read more at IdahoPress.com
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