While annexation wouldn’t bring Riot any direct financial benefits, it’s a significant opportunity for the company to engage with the local community. “It would be a public relations thing,” Brewer says. Riot, he says, “desperately needs positive PR.”
The company has been seeking a property tax break from Navarro County since February 2022 worth about $6 million over 10 years, according to an economic impact report commissioned by Riot at the request of the local government. But the tax break has so far been held up by county officials in the face of opposition from a protest group and other local residents.
Riot said the tax break could be the deciding factor in whether to expand the Navarro County facility to full capacity or allocate the funds elsewhere. “The tax breaks would be a big part of how the economy works,” Morgenstern said.
Residents opposing Riot in Navarro County cite concerns about potential noise pollution, resource operate and the facility’s potential impact on energy prices and Texas’ already frail power grid. “They’re hoping to win the bitcoin lottery, and we’re all subsidizing them,” says Jackie Sawicky, founder of the Texas Coalition Against Cryptomining, a local protest group trying to block Riot’s expansion.
Riot dismisses these concerns as unfounded, saying the Texas Coalition Against Cryptomining’s stance is not representative of the general public. “We definitely want support,” Morgenstern says. Riot, he says, aims to “mobilize the people who support us, and there are a lot of them. We believe they far outnumber those who oppose us.”
But in March, before county commissioners were to vote on Riot’s tax credit, dozens of local residents voiced their disapproval. “We had so much negative feedback about the credit,” Brewer says. “Between phone calls, emails, text messages, people walking in the door, I had over 100 people telling me not to give them the tax credit.” Brewer says not a single resident spoke in favor of giving Riot the credit.
The commissioners ultimately declined to vote on the matter, postponing a final decision until an unspecified future date. In the meantime, Riot needs a way to get members of the local community on board.
Riot has already thrown money at the problem, writing checks totaling more than $100,000 to local school districts and other community initiatives. To address concerns about its presence, it has held two meet-and-greet sessions with local residents in May and June. Oak Valley’s annexation could be another opportunity to rally people.
In a May 24 email titled “Thoughts About Your PR Needs,” Taylor, the Oak Valley mayor, advised Schatz on how the extra franchise fees could best be used to curry favor with Riot’s county commissioners, the guardians of the relief. “I have some thoughts on how to change public opinion in your favor,” he wrote.