Port Washington Voters Approve Limit on Large Development Tax Breaks

Voters in Port Washington, Wisconsin, approved a first-of-its-kind referendum on April 7, 2026, requiring city officials to obtain public approval for any future economic development projects utilizing tax incremental district (TID) financing exceeding $10 million. The measure passed with approximately 66.4% of the vote, with 2,710 residents in favor and 1,371 opposing.

The initiative was driven by Great Lakes Neighbors United after the city approved a $458 million TID for a $15 billion AI data center campus developed by Vantage Data Centers for clients including OpenAI and Oracle. While the existing data center project remains under construction and is not affected by the new rule, residents pushed for the referendum due to concerns over noise pollution, freshwater usage, and rising energy costs.

The Metropolitan Milwaukee Association of Commerce and other business groups filed a lawsuit to block the ordinance, arguing that creating political hurdles for investment violates state law and will drive jobs to other jurisdictions. Although an Ozaukee County judge allowed the vote to proceed, the court may still consider the constitutionality of the approved law. Port Washington Mayor Ted Neitzke expressed concern that the measure will deter future investment, though he is working with the city attorney to implement the ordinance immediately while awaiting a court hearing in late April.