Solar parks connected to data centers are in the works in other parts of the country. A 100-megawatt solar array is in the works in Tennessee to generate electricity for nearby Google data centers.
But the Green Data projects at Harvard and Murphysboro would be the first of their kind in the state. Bak is promoting them as a major economic development tool in parts of Illinois in need of jobs.
“The goal is to get these Silicon Valley jobs out of Silicon Valley and into rural areas,” he said.
Here’s the problem: data centers, large buildings with servers and other computing devices don’t employ many people. Bak’s project won’t employ nearly the 5,000 people who worked full-time on the Motorola campus in the 1990s. Companies renting space in the building will create jobs, but Bak declined to predict how many.
Harvard doesn’t have the luxury of being picky. Regardless of the jobs, redevelopment would increase the taxable value of the Motorola property and generate more property taxes for local governments, including the school district. Although the N. Division St. campus is empty in 2001, it is Harvard’s largest source of property taxes at more than $ 300,000 per year, said Charles Eldredge, executive director of Harvard Economic Development Corp.
“Anything the building is productive of is a good thing,” he said. “The more employees, the better. Anything would be better than what’s going on now. “
But when it comes to Dak’s proposal, the local officials are still in “Show-Me” mode.
“Conceptually, it would be great,” said Eldredge. “The city has had some conversations with him, but I don’t think anyone saw a formal business plan with details.”
Green Data is practically a startup – its Illinois projects would be the first – a reason to be skeptical. But Dak is a veteran of the renewable energy industry, leading Vancouver-based Finavera Wind Energy, which has developed wind projects in British Columbia and Ireland. The listed company Finavera took over the Solar Alliance in 2015 and received its name in the process.
The Solar Alliance is a penny stock company – its shares trade for about 25 cents in US dollars – and has a market capitalization of just $ 66 million. The company recently completed solar projects at a Maker’s Mark distillery in Kentucky and one for Bridgestone Americas in South Carolina for a total of 2.4 megawatts. This is the largest project to date.
Myke Clark, CEO of the Solar Alliance, didn’t return a call. In the past few months, the company has announced plans for a 56-megawatt project in Illinois without specifying the exact location.
Over the past 18 years, local officials have responded to a variety of inquiries from investors interested in acquiring the former Motorola cell phone plant. One suggested turning it into a water park. Another suggested turning it into a prison.
Then came Xiao Hua “Edward” Gong, a Sino-Canadian businessman who bought the property in 2016 for $ 9.3 million. He said he plans to make smartphones there but is breaking the law. In December 2017, Canadian authorities accused Gong of his alleged role in a fraud and money laundering case in which hundreds of millions of dollars of securities were sold to Chinese citizens.
The pending criminal case resulted in further delays and frustrations among local officials. In September last year, the Canadian authorities allowed the U.S. Marshal Service to put the property up for sale. Gong also owns a Rosemont Hotel and the Pittsfield Building in downtown Chicago, another hotel that has suffered from neglect.
Local officials welcomed the decision to sell the Harvard property, but they still wonder if Green Data will close the deal.
In a trial yesterday over a pending lawsuit regarding the property, a US Justice Department attorney told a judge that the deadline had been extended to July 16 or 19 from mid-May. Attorney Mary Butler added that the buyer, whom she refused to identify, had made a non-refundable deposit and agreed to pay the $ 54,000 property tax owed for the additional time.
“I think that takes us further than ever with regard to this property,” said McHenry County Judge Thomas Meyer at the hearing.
“We have hard money in the project. We are determined to close, ”Bak told Crain’s, declining to disclose the amount of the deposit or the selling price.
But he still has some major hurdles to overcome. After years of neglect, Motorola buildings have a major mold problem that needs to be addressed. And he has yet to work out a grant package with Illinois officials.
“We will certainly turn to the state for support to turn it into a technology center,” said Bak.
He declined to say how much green data would require from the state. MEP Reick, who spoke to Bak about incentives, also declined to give a number, saying that it was a “large number”. Reick sent Bak a letter months ago asking for more details about the proposed project. He didn’t get an answer.
“You have an obligation at this point to make it clear to the people of McHenry County what your intentions are,” Reick said.