BRENHAM CITY COUNCIL REJECTS REINVESTMENT ZONE FOR TECH PROJECT

  

The Brenham City Council today (Thursday) unanimously rejected the creation of a reinvestment zone for commercial tax phase-in for a large technology project.

The vote followed nearly two hours of discussion with representatives from Viridien, a France-based company seeking to build a high-performance computing center at 2602 Longwood Drive, and comments from a crowd of well over 100 people in attendance.  The crowd was large enough to force the fire marshal to request some attendees to step out of the council chambers, in order to not exceed the occupancy limit. 

Many of those in attendance were strongly opposed to having the project locate in Brenham.  However, officials from Viridien stated that the company still intends to move forward with its plans, regardless of whether it receives a tax break.

Viridien Facilities Manager James Whatley said the company’s plan over time is to relocate its current hub in the Americas from Houston to Brenham, adding that it chose Brenham because of its proximity to Houston and Austin, protection from major storm events and access to skilled resources, including Blinn College graduates.  He said the company wishes to contribute to the Brenham community and not be a burden to it.

Viridien produces data and images of the earth and its sub-surface, mainly for the oil and gas industry.  Its planned site in Brenham will sit on just over 21 acres, with the land purchase coming in at a price of $721,802, including land for detention.  The project will consist of an administration building and up to three data center buildings, which Whatley said would be about 40,000 square feet each. 

Whatley explained that the facility will utilize closed-loop cooling technology that would consume much less water than other data center projects.  He also mentioned the company’s access to newly dedicated power distribution from Bluebonnet Electric Cooperative, including an express feed from Bluebonnet’s substation to the Viridien site, with the upgrades fully paid for by Viridien.  Bluebonnet Manager of Energy Services Wesley Brinkmeyer said the project will not impact rates for Bluebonnet members.  Additionally, Whatley said noise level tests indicate that the company would fall well below the required decibel maximum set by the city’s noise ordinance.

The project is expected to create 26 jobs at an average annual wage of $90,000, with a total capital investment projected at $100 million at full build-out in 2028.  Whatley said the desire is to hire a local workforce to maintain the facilities, adding that the employees at the Houston location would not be able to relocate until those operations there are winding down. 

Over a dozen residents addressed the council, presenting concerns about the strain on resources including water and electricity, as well as the impact to the environment and Brenham’s small-town feel.  Several also criticized the feeling of being left out of the loop with a major project like this and the offering of tax incentives to a non-local company while local citizens and businesses struggle to pay their taxes.  One resident did voice support of the project, but wanted to ensure that any approved tax phase-in plan was reasonable. 

Among those who spoke was Taylor Farmer, who questioned contract documentation that would only require the company to refrain from using water-cooling technology for 10 years.  She suggested that the lack of cost-efficiency for the non-water-cooling technology could mean a pivot later to using water to cool down the facility’s equipment.

Melissa Seureau said approving the reinvestment zone and associated tax phase-in would mean the community is collectively paying the company’s taxes, and she urged the council to make the company have “more skin in the game.”

Amy Rupp called on the council to keep the community at the heart of its decision, citing the College Station City Council’s vote last year to reject a land sale for a 200-acre data center.  She said she does not want Brenham to lose its soul to a corporation.

Addressing the public’s comments on transparency, Brenham Washington County Economic Development Director Teresa Rosales said not much is released on projects like these during the negotiation process due to their competitive nature and the amount of proprietary information involved, adding that it was not until the company applied for the tax phase-in that the city was truly confident that the company had chosen to operate in Brenham.  She said it would have been premature to announce the facility was coming to Brenham before it was known for certain. 

Mayor Atwood Kenjura maintained that this process has been ongoing since 2022, was “not rushed”, and “followed the same public process that we do for all of our major developments for the City of Brenham.” 

Councilmember Adonna Saunders said the reason this project is coming before the council is not for whether it will be built, but for tax purposes, noting that it was first presented several years ago when the company was planning to utilize water-cooling and needed to step back.  However, she stated she did not realize this was “back on the table” until recently, so the council had no say in whether the project would locate there or not.  Councilmember Steve Soman said the council needs to own that it could have done a better job with communication internally and to the public, and that it needs to find ways to ensure better knowledge of economic activity.

Click here to view the agenda packet for Thursday's meeting.