Council debates, narrowly approves proposed data center overlay district

(Editor's note: This is the fourth and final story in a series about Monday night's Marshalltown city council meeting and the ongoing debate over data center regulations in the community.)

After voting down a pair of proposed amendments regarding water and cooling requirements, the Marshalltown city council entered the home stretch of a marathon discussion on data center regulations Monday night and passed the first reading of several supplementary ordinances with the understanding that the first reading of the primary ordinance will not be held until the Nov. 9 meeting due to substantive changes and at least one amendment being referred back to the Planning and Zoning Commission.

Instead of voting on the main ordinance, it was motioned to postpone that decision until the next meeting with a P&Z special meeting now set for Nov. 3 at noon. The motion to postpone passed unanimously. After over two hours on that topic, the council moved on to approving a new ordinance requiring data centers to utilize the public water system, and with no public comments, it passed by a unanimous 7-0 vote.

The council then considered a related ordinance restricting data centers and all properties within the city from drilling private wells when connection to the public water system is "reasonably available." Councilor Melisa Fonseca asked whether new homeowners who buy a house hooked up to a private well would have to switch to the public system, and Ender said that would be the case within a 60-day window.

"Ultimately, it's just about protecting our aquifer and making sure we have control of our water source," Ender said.

Fonseca suggested that someone from Marshalltown Water Works (MWW) should reach out to the homeowners who have well water systems within the city, and she didn't feel that they should be forced to switch. During the public comment period, Maggie Valentine opined that the clause should only apply to businesses as opposed to residential properties.

Mayor Mike Ladehoff commented that generally, it is not good for residents to be on their own wells, and that is the reason rural water is so popular for those who live outside of city limits. He also warned of the possibility of exposure to bacteria and disease, citing Iowa's increasing cancer rates.

"I do think it's a good idea to eventually get everybody on public water for the whole city's health," he said. "I grew up on well water, and I wouldn't drink it out there now."

A motion to approve the original motion passed by a unanimous 7-0 vote. Next up was the noise control ordinance clarifying how sound is measured, how the city applies numerical sound limits, establishing standards for routine testing and maintenance of generators and addressing generator operations during qualifying emergencies. The ordinance sets maximum decibel limits of 80 DBA for industrial properties.

Councilor Gary Thompson asked about the fines for violations, and Ender replied that they are already in a separate existing chapter of the code. Public commenter Jim Grimmius wondered whether the Union Pacific Railroad, semi trucks using jake brakes and racetracks were subject to these limits. Ladehoff replied that the railroad was exempt, jake brakes should be ticketed, and the races cannot be fined due to a recent change in state law.

Leigh Bauder asked whether the rules would truly be enforced, and she wondered whether fines against a data center would make an impact given the deep pockets of the company. Thompson then asked Police Chief Chris Jones how many officers are trained to use the decibel meter the MPD has, and he noted that all officers are trained to use it. The first reading of the noise ordinance passed by a unanimous tally.

The last data center related topic to draw controversy was the establishment of the data center overlay district, where approval is granted by administrative right rather than the special use permit process. Currently, it would comprise the Edgewood Industrial Park near JBS and an undeveloped area east of 18th Avenue from the water tower south to Iowa Avenue.

Thompson asked for the rationale behind the overlay district as opposed to simply encompassing all of the general industrial zoned land within the city and what made these areas "special." Councilor Marco Yepez-Gomez then proposed an amendment to remove the entire area north of Marion Street from the overlay district, which received a second from Councilor Mark Mitchell.

City Clerk Alicia Hunter read a written comment from Diamond Roots LLC, whose owners farm land directly across the road from the proposed southern overlay district, in opposition to the creation of the district. Layne Pieri asked Planning and Zoning Commission Chairman Jon Boston why the areas in question were selected for expedited approval.

"It's pretty simple. They were the logical places that data centers would be interested in going into, and they're wide open ground. They're close to the Alliant plant, so they're also identified in the comprehensive plan for those types of uses," Boston said.

Pieri then argued that they were chosen because they were beneficial to companies seeking to develop there, and Ladehoff noted that all of the Edgewood lots are currently owned by the city.

"A small scale data center would match into general industrial. That's the way it's zoned right now," Ladehoff said.

As Pieri continued to raise concerns, Boston said the overlay district did not grant any "special privileges" and still required developers to meet all of the established qualifications to build there.

"I think this is super unclear to the public at this stage. You guys know I spent a lot of time looking into this stuff, and I'm confused," Pieri said.

Yepez-Gomez felt that Boston's comments were inaccurate because the overlay district does expedite the process as opposed to the hearing and approval process in place for a special use permit.

"The whole point of a data center ordinance is to potentially allow them. Why wouldn't we want to make this process work for data centers in certain areas where they're suitable?" Councilor Jeff Schneider replied.

Maggie Valentine said she didn't like the way the overlay district was being used.

"If the point is to welcome data centers, then maybe this makes sense, but the majority of people in Marshalltown have not said we want to welcome data centers across the board," she said. "People have made it clear that they want a chance to weigh in on these things. Asking for a rezoning as part of their proposal would allow people to do that, and I know a lot of people agree that no matter how you word it, the people of Marshalltown don't want these being just approved. We want public hearings. We want it to come before city council. We want the people that we've elected to have to answer to us, answer our questions, hear our comments. So putting this overlay on the map automatically removes our ability to do that."

She called for removal of the "by right" language and requiring a special use permit and hearings for all projects. Amber Lawthers agreed with Valentine and said the overlay district should be removed entirely.

"I just think it's a really big decision. It shouldn't be one we don't have a say in," she said.

Yepez-Gomez's proposed amendment failed by a 4-3 vote with himself, Mitchell and Fonseca in favor, and the original ordinance passed by a 4-3 vote with Yepez-Gomez, Mitchell and Fonseca opposed.

Contact Robert Maharry at (641) 753-6611 ext. 255 or rmaharry@timesrepublican.com.