As we have learned, the Western Virginia Water Authority is an independent corporation, a monopoly, which can contract to sell our water to whomever it chooses, and can issue bonds—the interest of which is charged to consumers—and owes a fiduciary duty to its bond holders rather than to the residents of the counties of Roanoke, Franklin, and Botetourt. I failed to mention previously that its property, and its income both from supplying water, and from bond issues, are tax exempt pursuant to Va. Code § 15.2-5132. That’s an interesting set of incentives. With these privileges, what sort of contracts would it make?

Evidently, it will make secret contracts that, it anticipates, the public will hate. I have before me the “WATER SUPPLY AND INFRASTRUCTURE PLANNING AND DEVELOPMENT SERVICES AGREEMENT BETWEEN WESTERN VIRGINIA WATER AUTHORITY AND BOTETOURT COUNTY.” An early paragraph of this document specifies that Botetourt County must help the water monopoly manage public fears that we will run out of water: 

“The County will reasonably cooperate with the Authority in public relations efforts associated with the Project…The County will not make any statements concerning water supply issues associated with the Project without the Authority’s prior written consent.”

The contract acknowledges that this fear is well founded, noting 

“the Day 1 Solution exceeds (i) the current water supply capacity available to the Property utilizing the Authority’s existing infrastructure and (ii) the future water supply capacity available to the Property under the Authority’s current long-range planning for water supply capacity…”

Later on, the agreement more specifically relates that “the area along U.S. Route 220 north and west of its intersection with Interstate 81…will have limited water supply capacity following the commissioning of the Day 1 Solution.”

These confessions notwithstanding, 

“the Parties understand the Owner may eventually expand the Project and request an increase in the water supply capacity at the Property up to at some unspecified date in the future (the “Day N Solution”).”

Compare these admissions from the contract to the statements on the Water Authority’s website:

So we’re going to have to find a lot more water somehow, and fast. We don’t know how much more is required, because that is redacted from the agreement, but who’s to pay for the new infrastructure? Botetourt mostly: 

“the County’s maximum financial obligation for the Water Supply Project will be as follows: (i) 100% of all Costs of the Water Supply Project up to $100,000,000; (ii) 75% of all Costs of the Water Supply Project over $100,000,000 and up to $175,000,000; (iii) 50% of all Costs of the Water Supply Project over $175,000,000 and up to $225,000,000; and (iv) 25% of all Costs of the Water Supply Project over $225,000,000 and up to $300,000,000. The Authority will be responsible for the remaining Costs of the Water Supply Project.”

I’m a careless mathematician, but I think Botetourt is on the hook for $200 million. Other paragraphs require Botetourt to purchase and convey to the Water Authority enough real estate for this project. 

The Water Authority’s incentives are plain, but why would Botetourt undertake all of this for the sake of a Google data center? For that we must turn to the “ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT” between Botetourt and Google. 

Google will make certain “investments.” The first: 

“4.1 Capital Investment. The Company shall make a Capital Investment of not less than One Billion Dollars ($1,000,000,000.00) in development of each Data Center on the Property.”

So there’s tax revenue here, but a later section effectively caps that revenue: 

“6.2 Grant. In the event that, for any year, the Tax Rate is more than $2.40 per $100 of value less Depreciation, as prescribed on the appropriate Botetourt County Commissioner of Revenue Businessn  Tangible Property return form, then the County shall pay to the Authority a sum equal to the amount by which the taxes paid by the Company exceed the amount the Company would have paid if the Tax Rate had been $2.40 per $100. The Authority shall then pay such sum to the Company as a performance grant in consideration of its commitments made under this Agreement.”

And of course, the Commonwealth has granted data centers a sales and use tax exemption through 2035.

Next, Google commits to creating a few jobs, but this contract at least requires them neither to keep these jobs for any term, nor to hire locally: 

“4.2 Jobs. The Company shall create not fewer than fifty (50) new full-time jobs at a median salary of at least $86,000 per year for each Data Center on the Property, which was calculated by taking one and one-half times $57,257 (the prevailing average annual wage in the Botetourt County).”

And Google will toss in a few bucks for ambulances and things: 

“5.1 Company Investments. The Company shall invest a total of Four Million Dollars ($4,000,000.00) in community projects over a five-year period.”

This contract also authorizes Google to “manage all  media and press relations services,” i.e. propaganda, concerning “confidential information.” Among this confidential information, Google argues, is precisely how much of Roanoke’s water it proposes to guzzle. Moreover, should Botetourt or the water monopoly receive a FOIA request pertaining to the data center, Google has the right to screen it, dictate the response, and participate in any consequent legal proceeding: 

“The Company reserves the right to control and approve the method, manner and content of any and all Confidential Information. Except as provided below, the County and the Authority will not disclose Confidential Information to anyone without the Company’s prior written consent… Should the County and/or the Authority receive any public records request implicating the Confidential Information, the County and the Authority will (i) promptly notify Company in writing of the request and provide Company with copies of all relevant documents related to the request; (ii) cooperate with Company in asserting any applicable exemptions from disclosure under the Virginia Freedom of Information Act, including, but not limited to, the proprietary records and trade secrets exemption provided by Va. Code § 2.2- 3705.6(3); and (iii) allow Company to take any and all actions it deems necessary and appropriate to protect its Confidential Information, including, but not limited to, intervening in any legal proceedings related to the disclosure of the Confidential Information…Without limiting the foregoing, Company will manage all media and press relation services regarding Company’s involvement with the County and the Authority.”

This is exploitative of the community and of the environment, but it all follows the incentive structure of the Virginia Water and Waste Authorities Act. Presumably the bond holders of the water monopoly are pleased. All the secrecy clauses suggest this to be a willful con, and handing propaganda duties over to DARPA-created Google is just a scammy (and sinister) cherry on top.

Follow these groups for more information:

Southwest Virginia Data Center Transparency Alliance

BOCO Data Center Information

Botetourt Conservatives and Independent Thinkers