With the ongoing discussion around data centers in area communities, the Wright City Board of Aldermen is seeking to be proactive and develop a specific ordinance relating to data centers prior to any project being suggested for the city.

The aldermen, along with members of the city’s Planning and Zoning Commission, discussed the matter during a joint workshop Monday, May 4.

The proposed ordinance, created by Alderman Karey Owens and drafted by City Attorney Paul Rost, would create an entirely new zoning classification for data centers labeled M-3. According to the proposed ordinance data centers would only be allowed in M-3 districts and not as a permitted or conditional use within M-1 (light industrial) or M-2 (heavy industrial) districts. They would also be prohibited in floodplains, wellhead protection areas, conservation districts, land zoned for residential or agricultural purposes and within any overlay district prohibiting high intensity industrial uses.

According to the proposed ordinance, the new district is intended “to provide a limited and highly regulated zoning district for large scale data centers whose operational characteristics require heightened standards for water use, energy consumption, noise control, infrastructure capacity, and long-term site management. This district is designed to protect public infrastructure, environmental resources, and nearby land uses while allowing compatible economic development under strict performance standards.”

The ordinance would require 700-foot setbacks and a minimum of 100 feet of landscaped buffers, berms and screening.

No data center building shall exceed two stories or 35 feet in height.

With respect to noise, levels shall not exceed 60 decibels at the property line and an independent noise study shall be completed prior to the initial application.

Backup generators for any data center facility can only be tested between 10 a.m. and 5 p.m. Monday through Friday.

With respect to water usage, no potable water shall be used for cooling except in emergency situations. The facility must use only air cooled or closed loop cooling systems. When flushing any water used for cooling it must be trucked off site to a permitted treatment or disposal facility.

The proposed ordinance also includes a provision that a minimum of 25% of the data center’s average annual electrical demand shall be supplied by on-site renewable energy systems or dedicated off-site generation contractually committed to the facility.

All lighting for data centers shall be fully shielded, downward directed, and designed to prevent glare or light trespass. Lighting shall not exceed 0.5 footcandles at the property line. The proposed ordinance also requires that applicants provide landscaping on a minimum of 10% of the lot area, inclusive of a mix of evergreen and deciduous trees.

The proposed ordinance includes a provision that decommissioning of equipment commence within 12 months of ceasing operations. The data center developer would also have to post a bond or other financial arrangement to cover the cost of decommissioning and remediation of the property.

With respect to taxes, the proposed ordinance makes data centers ineligible for personal property tax abatements, but leaves the matter of real property tax abatements open.

It also includes a provision that the city may suspend collection of personal property and real estate taxes for residents in a one-to-one ratio compared to the tax revenue generated by a data center during the facility’s operation. This suspension would only be temporary for residents during the life of a data center.

During the discussion on the proposed ordinance Owens asked those assembled whether the ordinance was too restrictive, saying that was one of the complaints she heard.

Planning and Zoning Commission member Ramiz Hakim said he didn’t think it was strict enough.

Mayor Michelle Heiliger said with respect to any economic development ordinance she didn’t want it to look like the city is slamming the door on any business and that businesses can only come to town if they do things exactly the way the city requires.

Hakim said that while you cannot stop growth you can require that businesses do things exactly the way the city wants.

Heiliger clarified by saying she thinks there is a middle ground between allowing all businesses and being too restrictive.

“We want to keep the door open enough that we invite the tax generating revenue that we need,” Heiliger said.

She noted that if a data center ever did come to Wright City, the revenues generated wouldn’t last forever and that the city needed to be forward thinking and work on providing opportunities for businesses that would generate sales tax revenues as well.

Hakim made some suggestions to add to the proposed ordinance. He said he would like to have a data center professional or engineer that could review the proposed ordinance and give feedback. Hakim also suggested giving both residents and any data center developer the option to object to decisions made by planning and zoning or aldermen. He noted that the city’s code already has such challenge processes in its code, and that this would facilitate trying to resolve objections in-house and potentially avoid lawsuits. Owens said she would take those suggestions and look to incorporate them into the ordinance.

As the meeting was a workshop, no formal decision was made on the proposed ordinance.