With photos, video and reporting support from Sue Kelch
The applause inside Saline Township Hall came not because the board rejected Oracle’s tax break, but because it approved far less than the company requested.
Why the Smaller Number Matters
The vote did not make the data center smaller or reduce Oracle’s stated investment. It limited how much of that investment would receive reduced property tax treatment.
Oracle’s May application lists nearly $43.1 billion in proposed investment.
An earlier application attached to the October 2025 consent judgment, a court-approved settlement in the lawsuit over the project, lists about $1.31 billion in real property costs and $3.5 billion in personal property costs. The total is $4.811 billion.
The settlement calls that document the “agreed-upon form” of the application.
The board therefore approved the incentive on roughly one-ninth of the amount Oracle requested.
An Industrial Facilities Exemption Certificate, or IFEC, gives qualifying property reduced tax treatment for up to 12 years. It is often described as a 50% tax abatement, although the calculation varies.
Project cost is not the same as taxable value, so the difference between the two applications cannot be converted directly into tax revenue. However, if the state accepts the township’s decision, far less of the project’s listed investment would receive the tax break.
A Court Order Framed the Decision
The board began the meeting with a warning about what could happen if it refused to approve an exemption.
Supervisor Tom Hammond read a summary prepared by David Landry, one of the attorneys who represented the township in the data center lawsuit.
The consent judgment says the township “shall approve” an IFEC application and provide the maximum exemption allowed under state law. It also identifies the attached $4.811 billion application as the agreed-upon form.
Hammond said Landry advised that refusing could violate the court order and expose the township to sanctions, attorney fees and substantial damages.
“The court did not say that the township may approve the IFEC,” Hammond said while reading the summary. “The court ordered the township, ‘You shall approve the IFEC.’”
Trustee Dean Marion warned that another lawsuit could burden the township and its residents.
“If we deny it, it’s going to cost the township millions and millions and millions of dollars,” Marion said.
Hammond also pointed to protections in the settlement, including limits on expansion and water use, monitoring and a decommissioning bond.
“I think we need to have a dog in the fight,” Hammond said. “We have a responsibility to the rest of this township.”
Public Comment Moved Ahead of the Vote
Public comment was listed after the IFEC decision on the original agenda. People in the packed room objected, arguing that their voices would mean little after the vote.
Officials initially said they had been advised against reopening comment after the previous week’s lengthy public hearing.
Hammond said he wanted to hear from the room. The board voted unanimously to move public comment ahead of the decision.
For nearly two hours, residents, neighboring officials and people from other Michigan communities asked the board to reject Oracle’s application, seek another legal opinion or limit the exemption to the amount in the original paperwork.
Several repeated the warning, “The country is watching.” Just as often, they told trustees that Saline Township would not have to face whatever came next alone.
“The community has your back,” Washtenaw County Commissioner Yousef Rabhi said. “The county has your back.”
Others offered legal contacts, financial help and support from communities facing similar projects. One speaker said the fight had helped people get to know their neighbors.
Saline Township resident Eric Grossman voiced the path the board would eventually take. He asked whether officials could approve only the original amount, remain within the consent judgment and leave Oracle to challenge the difference.
“Wouldn’t you then be keeping within the boundaries of the consent judgment?” Grossman asked.
Ypsilanti Township Supervisor Brenda Stumbo also urged the board to use the lower figure.
“Stick to the original $4 billion, not the $43 billion,” Stumbo said.
She proposed requiring Oracle to repay taxes it avoided through the exemption if it left before the 12-year period ended. She also questioned why the agreement did not include a firm employment commitment.
“Tax abatement is for jobs,” she said. “In their application, it said 450 jobs. Why wouldn’t you put it in the agreement?”
The speakers had offered another option: Approve the exemption officials had been advised was required while limiting it to the original amount.
The Moment the Vote Changed
After public comment ended, Marion moved to approve Oracle’s application.
For a moment, no one seconded the motion.
“I can’t,” newly appointed Trustee Gary Luckhardt said.
The room erupted in applause.
Luckhardt said the speakers had given him more to consider. “At the end of the day, I have to sleep at night,” he said.
Marion then moved to approve the exemption for about $4.8 billion in investment. Treasurer Beth Boulter asked to add a clawback.
The board approved the motion 5-0. The room applauded again.
The board had not denied the incentive. But after hearing from the public, it declined to extend reduced tax treatment to Oracle’s full request.
What Remains Unclear
The exemption is not yet final. The State Tax Commission must review the application and issue the certificate before it can take effect.
It also remains unclear what would trigger repayment, who will write the clawback terms, whether Oracle must agree to them and whether the state will accept a township resolution approving an amount different from the company’s application.
For many who stayed, however, the vote carried a more immediate meaning.
They had asked a township board to hear them before making a decision with consequences across Washtenaw County, and perhaps further.
The board listened.
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