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Local 150, the international union of operating engineers, has raised concerns against Michigan City’s data center development, claiming the project has hired out-of-state and non-union contractors for the work. Angie Nelson Deuitch, Michigan City’s mayor, said the claims are political theater and a smear campaign against the data center. “They have chosen to politicize their private land dispute, falsely blaming local government and attempting to incite unrest in our community,” Nelson Deuitch said during a Tuesday news conference. “The city’s only involvement has been to maintain public order and ensure compliance with public laws.” In a Nov. 4 news release, Local 150 responded to the mayor’s news conference, saying that “taxpayer-funded incentives have been used to enrich out-of-state corporations instead of creating jobs for Indiana workers.” In September, the Michigan City Common Council passed four resolutions that would allow the construction of a data center at 402 Royal Road, which is currently owned by Phoenix Investors, according to Post-Tribune archives. A representative for Phoenix Investors was unable to immediately respond to a request for comment about Local 150’s concerns. Resolutions provided multiple tax abatements, designated the area as an economic revitalization area and approved a taxpayer agreement for “Project Maize,” also known as the data center location. The data center operator has yet to be announced, but some Michigan City residents believe the end user will be Google. According to Local 150, Project Maize has received $42 million in tax incentives through the Indiana Economic Development Corporation, and the lead contractors have hired workers from Wisconsin, Ohio and Alabama. Local 150 Financial Secretary David Fagan said Wednesday that the union has raised concerns about local workers’ exclusion from the project for months. On Aug. 29 — the Friday before Labor Day — Local 150 members met with Phoenix Investors, who told the union that the company would make no commitment on who they’d hire for Project Maize. The developer has hired a local contractor, Fagan said, but the union believes the contractor has “no significant role in the overall project.” “We look at that as nothing more than a lack of sincerity on their commitment to the Indiana construction industry,” Fagan said. “I think, overall, our position has been that if the state or subdivision of the state utilizes various incentives for businesses, the construction side ought to be part of the metrics and add value to the state of Indiana.” By not including local workers in a meaningful way, Fagan believes that young people in Michigan City are “missing out on tremendous opportunities” in the construction industry. Any claims that the city is anti-union are false, Nelson Deuitch said. “We’re not anti-union,” she added. “We’re pro-Michigan City, and we’re pro-Northwest Indiana.” During her news conference, Nelson Deuitch said the union was providing “misleading information and inflammatory claims” against the city’s public officials. She also said it’s important for everyone to understand that Project Maize is not a city-led or taxpayer-funded project. “It’s a private development that received incentives from the state in June,” she said. “They did not receive any approvals from the city until September. This is all about a political agenda.” Nelson Deuitch also called out Fagan during her news conference, saying that he is a member of the board that approved the state incentives in June. “My question is … did (he) say something then, or is (he) now because this is the data center in Michigan City, and (the union wants) full site control?” she said. “This is about power. This is about influence. … Contrary to what they want to say and believe, we stand with our workers.” Previously, Nelson Deuitch has voiced concerns about the data center project, saying in a July 14 statement that the $800 million capital investment would come with “limited job creation and no assurances of community reinvestment or substantial tax impact.” Her statement also said that, at the time, Nelson Deuitch’s administration and council members entered into non-disclosure agreements to review the concept in a confidential executive session. No formal agreement was reached at the time, according to the statement, and no binding commitments were presented to ensure lasting benefits to Michigan City residents. “Michigan City welcomes innovation and responsible investment, but our administration will always advocate for economic growth that is equitable, transparent and in the public interest,” Nelson Deuitch said in her previous statement. Local 150 announced Oct. 29 that two unnamed union members were arrested in Michigan City after protesting Project Maize. Police were also directed to impound the union’s “rat car” and inflatable rat, which are both symbols of union protest recognized by the National Labor Relations Board, according to Local 150. The union plans to file charges with the National Labor Relations Board and “is exploring all legal remedies to hold Michigan City officials accountable for their unlawful actions,” according to a Local 150 news release. Phoenix’s legal counsel sent Local 150 a cease and desist letter on Oct. 17, Nelson Deuitch said, which took several steps to redirect protestors to other parcels of land. “But on that particular day … they decided to be arrested,” Nelson Deuitch said, referring to the arrest of two union members. “In fact … one of the participants who was arrested said they thought that the South Bend news media was going to be there.” Michigan City Police Chief Steve Forker spoke during Nelson Deuitch’s news conference, adding that Phoenix Investors said in an Oct. 20 correspondence that the company no longer wanted protestors on the Royal Road property. Officers were then told to redirect protestors to public property located either north or south of 402 Royal Road. Representatives from Local 150 wanted to protest at 402 Royal Road but were told to relocate by officers, Forker said. “After an hour plus of negotiating, the individuals refused to move their truck and leave the property,” Forker added. “They were both placed under arrest for criminal trespassing, and the vehicle was impounded.” The two arrested protestors were arrested for trespassing on what they believed to be a public road, Fagan said. “We look at this as nothing more than the city of Michigan City is using the power and authority of the state of Indiana and their police department to interfere with our rights to engage in a protest of unfair labor practices,” Fagan said. “They’re protecting the developer and protecting the end user who are hiring out-of-state workers and contractors instead of thousands of qualified members working here throughout Northwest Indiana.” A business agent through Local 150 had access to the Royal Road property, Fagan said, but Phoenix Investors had told the employee that they would not be allowed on the property unless they were willing to sign a nondisclosure agreement. “We are currently striking Phoenix under the umbrella of unlawful activity,” he said, “but we believe they violated our rights to have access to the project.” Ashley Williams, executive director of Just Transition Northwest Indiana and Michigan City resident, has been outspoken about her Project Maize concerns. JTNWI started an accountability campaign after the Indiana Department of Environmental Management, on Oct. 9, cited Phoenix Investors with a violation letter at the data center site, according to Post-Tribune archives. According to the violation, IDEM found trichloroethylene, or TCE, at the site, which the National Cancer Institute defines as a “volatile, colorless liquid organic chemical” that can be found in the air, water and soil, and has been linked to cancer, kidney disease, Non-Hodgkin’s lymphoma and cardiac defects. “The conditions I’ve witnessed with my own eyes at that site, a contaminated brownfield, are of grave concern: lax safety protocols, workers with little to no proper protective equipment, vehicles from all across the country, and unmitigated dust plumes stirred up across the site and into the nearby community, undermining our health and well-being,” Williams said. Williams also said JTNWI supports Local 150’s concerns, adding that she believes Project Maize doesn’t meet “Hoosier standards,” and the development should provide union jobs. “Good-faith development helps communities work together,” she said. “Bad-faith development has neighbors looking over their shoulders. That’s how we feel about Phoenix Investors at the Project Maize data center in Michigan City. Due to this and the recent violations cited by (IDEM), Phoenix has demonstrated that it is not a good neighbor and must continue to be held accountable for its actions and those of the project’s suspected end user, Google.” Other data center development projects have committed to hiring more Indiana workers than Project Maize, Fagan said, including the Amazon development in New Carlisle. Out-of-state workers have been hired to do some specialty work, but Fagan said the majority of New Carlisle workers are Hoosiers. “Overall, we’re in really good shape with Indiana workers on other projects,” Fagan said. “This data center here is the one where local participation is almost nonexistent.”
