Chillicothe — Council surprisingly rescinded their moratorium on data centers in their September 14th session, after the appearance of a February letter from the city informing the owner of the former paper mill that there appeared to be nothing to prevent them from developing one.
This was also a week after a September 8th review session where the company that is planning to build the “data hall” in the Chilpaco division of the former paper mill – Alignment Engine of Canton, Ohio – gave a presentation in the session and answered questions from the public. That also garnered much online chatter.
And that was three weeks after passing a 60-day “data center moratorium” on August 24th. The legislation was allowed to bypass the three-day receipt rule and three-read rule to be passed unanimously, and its “emergency language” meant that it took effect immediately instead of after the usual 30 days.
The moratorium was rescinded basically on a technicality – but is intended to be redone after adjustments.
The September 14th council session began with a discussion on the data center issue before their regular session on September 14th (in Chillicothe High School Auditorium again). The session began with an Engineering Committee meeting at 4:15pm.
In it, Mayor Luke Feeney explained the process to get approval from the city for zoning changes and getting building permits. He also pointed out that the city has a new “Universal Development Code” that replaced the city’s zoning code – but it does not comprehend the new industry of data centers.
The mayor told the committee that on February 12th, the owner of the former paper mill asked the city if a data center could be developed there in a “zoning verification letter,” a standard procedure by a business to inquire about zoning.
Feeney said that the city basically could not give any other answer other than telling them that there did not appear to be problem with that, on February 20th. The site is zoned “General Industrial” and a data center would likely be treated as permitted use. He said the city did not, and has not, received an actual application.
Feeney told me that he understands that council feels frustrated that they did not know about the letter sooner, but such letters are standard procedure handled by the city’s new chief building official, and they happen often – and that the letter was public record and was not hidden from council.
Hear the mayor in my below video interview.
The Engineering Committee is chaired by Kathy Dunn, but Jeff Creed dominated the discussion. He brought up the letter from the city and read it, and later moved for the committee to clarify the moratorium on data centers. When asked, he said he had obtained the letter within the last week and a half.
He explained to me afterward that his intent was to “grandfather” the Alignment Engine data center since they already had partial clearance from the letter.
He said “if you’re coming here to do business, and we tell you it’s ok to do business, we’re not going to pull the rug out from under you and tell you you can’t, and you’re going to have to wait around six months while we try to figure it out.”
Creed said the revised moratorium would exclude the Alignment Engine site specifically, in order to legally protect the city after it made that determination in the letter. Because of the letter, AE has already started planning, and some work, on the site.
But Creed also said that he wants it to specify limitations for any data center: 100 megawatts or smaller, with its own electrical and water supply, to process its own wastewater, and to limit sound pollution. He said that they should meet all that, based on their presentation.
The three members of the committee voted on Creed’s motion to revise the moratorium. It passed 2:1, with committee chair Kathy Dunn voting no to moving it out of committee to the Law Director and council, and committee member Greg McKeever voting in favor.
Along with the mayor, Creed said it would take too long to amend the city’s code in reference to data centers – long past the remaining time in the 60-day moratorium.
Creed pointed out that the process to update the Universal Development Code could take up to three months in the city department, only then moving on to council – up to a six-month process.
He said he had gotten a lot of feedback after the September 8th review session – much of it positive. He said many commenters were unsure about the project, but Alignment Engine’s presentation helped them to understand better.
Creed said the development will also help maintain control of the Wear-Ever plume of pollution in the groundwater, since no one else has $3 to $4M a year to pump the water and then process it – which US Paper Mill is currently doing.
Hear Creed in my below video interview.
Find video coverage of the committee meeting by the Greater Chillicothe Ross County Film Commission. Action starts at 13:15 with the mayor speaking. Creed speaks at 26:15, reads the letter again at 33 minutes, and the committee vote is at 36:30.
Although the former paper mill’s ASRS facility – the tall blue building at Eastern Avenue – has been identified as the Chilpaco building proposed to be used as a data center, the buildings actually to be used are shorter ones behind it.
