RINCON, Ga. — Effingham County Industrial Development Authority officials are considering ways to return millions of dollars from the sale of land for the proposed OpenAI data center to local taxpayers, including a proposed $90 million transfer to the county over three years.
The proposals could provide about $38.6 million in potential property tax relief next year — $30 million from the proposed county transfer and about $8.6 million from returning the authority’s two mills to taxpayers, according to estimates presented Aug. 20 during the ECIDA’s monthly meeting.
OpenAI announced plans in July to build a $20 billion data center campus on the 1,400-acre site at the Savannah Gateway Industrial Hub in Rincon. The project, known as Project Camellia, is expected to include up to 3.2 gigawatts of power and create hundreds of permanent jobs.
IDA CEO Brandt Herndon said the authority’s public funds increased by $350 million following the sale of the property to Octans Ga. LLC, the listed developer for Project Camellia.
Herndon said officials are discussing how the authority’s two mills could be returned to taxpayers for a period of time. He estimated the two mills would amount to about $8.6 million next year.
A mill equals $1 in taxes for every $1,000 of assessed property value.
“The intent is there. I’m gonna do everything possible,” Herndon said.
Tax relief plan
Herndon also proposed transferring $30 million annually to the Effingham County Board of Commissioners for the next three years, or $90 million total, to support efforts to reduce property taxes.
He said the proposed $90 million would be separate from the $80 million OpenAI has already pledged for community use.
The plan is not yet finalized. Attorney Chris Murphy said the authority and county would need an intergovernmental agreement and likely a resolution to establish the legal mechanism for the transfer. The county also would have to approve the agreement.
“We can’t simply donate,” Murphy said. “We’re going to have to specify the terms by which that agreement can be carried out for some consideration.”
Herndon said officials were working quickly because they hope the two-mill proposal could apply to the upcoming tax year.
Residents push back
But potential tax savings did little to sway some residents.
Raymond Carver, a resident of Belmont Glen, said he would rather continue paying his property taxes than accept a reduction in exchange for living near a data center.
“Helping me with my taxes is nothing I asked for,” Carver said. “I ask for quiet enjoyment of my home.”
Jeanne Seaver, who lives in Blandford Crossing, a neighborhood close to the site, criticized what she described as a lack of transparency.
She said her daughter lives near the proposed development and that she was doubtful tax savings would offset potential effects on nearby homeowners.
“You think that a couple thousand dollars is gonna help us?” she said. “My daughter has her house up for sale. She paid $480,000 for it. And she got offered less than $400,000, just since you guys announced that a data center was coming to town.”
Questions over transparency
OpenAI and the ECIDA met Wednesday with representatives from the Effingham County Board of Commissioners, the school district and Rincon during a nonpublic meeting.
Herndon said the meeting was kept below a quorum and gave officials an opportunity to question OpenAI’s head of operations Brent Mayo, who is expected to oversee construction of the facility.
“He answered questions for an hour and a half,” Herndon said. “It was very helpful, very enlightening.”
Herndon also proposed during the meeting that the IDA seek proposals from investment managers to oversee the authority’s newly increased assets.
Herndon said the goal is to protect the funds while maximizing their return.
“We have to protect the money and invest it,” he said.
Officials are expected to revisit both the two-mill proposal and the proposed $90 million transfer at a future special-called or regular meeting.
