Harmony Considers Data Center Ordinance

In a joint planning session on August 5 the Harmony City Council, the Harmony EDA and the Harmony Planning and Zoning came together to review a draft data center ordinance for the city. Mayor Steve Donney opened the meeting and explained that there would be no public comment; the public was encouraged to submit written comments following the meeting.

City Attorney Greg Schieber introduced Soren Mattick, a municipal attorney from the Twin Cities who was assisting Harmony with the ordinance. Harmony had been approached by MiEnergy last fall about the possibility of building a data center in Harmony. Since the city had no ordinance on the books about such centers, the EDA, P & Z and council began a series of five or six meetings to consider the item.

Mattick shared that the main concerns with data centers were electricity and water consumption, noise and overall environmental concerns. Using a slideshow presentation, Mattick walked the group through the draft ordinance.

The ordinance would provide for a CUP (conditional use permit) for data centers. This means that a company would need to apply to the council for a permit before proceeding with development. A public hearing would be required, which would give the public opportunity to share any concerns.

Under state law an environmental review (either an EAW, EIS or AUAR) might be required to assess possible environmental impact. Harmony would also have the discretion to ask for one itself if desired. Erik Olson of P & Z asked how the city would know if a review was required. Mattick assured Olson that the requirements are very explicit; the attorney could advise them.

Section 5 of the ordinance addressed the application process for a data center. If construction of a data center was planned to be built in phases, the company would need to be transparent on its plans and explain the phases as well as the full build.

The company would need to provide information on the location and show where everything was going to be located including possible internal public streets.

Stuart Morem pointed out that MiEnergy would be paying for all infrastructure. The city of Harmony will not be paying for this at all. In addition, Mayor Donney reminded the public that the city would profit from the electricity franchise fees for the center.

The city would be limiting energy usage to 55 megawatts; this is based on availability of energy. It was calculated using other high energy users’ data in the city.

The water system would be a closed loop system. Water usage according to the ordinance could not exceed 60,000 gallons unless approved by the city following verification that the water was not used for cooling. Mattick reminded the city that it supplies the water and controls it. He also said what happens to the water when it is released is important as well. If water is too hot it could damage the city’s system.

Mattick noted that noise would be addressed by an ambient noise study by a third party engineer. The state has a statewide standard that must be met. The city may require an additional annual noise study. Mattick reminded the group that data centers would run 24/7, unlike farm harvesting noises.

Erik Olson asked about any hazardous waste; Mattick replied that the state regulates such things. Olson was also concerned about any decommissioning of the center if it were to close. Mattick assured Olson that it would just be a building, “a very vanilla building,” for someone else to repurpose.

Section 6 of the ordinance addressed performance standards. Mattick reminded the group that none of this was statutory; he had used information gathered from the group’s discussions.

The ordinance states that minimum lot size for data centers over 100,000 square feet would be five acres. Maximum height was not to exceed 60 feet. Building materials to be used included decorative rock face block, glass, cast in place concrete or precast panels or brick.

Stuart Morem of the EDA commented that he felt metal should also be an option since it is used in the industrial park otherwise. Mattick replied that he was okay with that if the group was comfortable with it.

Setbacks were set at least 300 feet from all external perimeter property lines and at least 500 feet from residential property lines. Donney suggested that perhaps the setback from agriculture could be lessened.

Buffers and screening for the data center could include vegetative buffers, berms, fencing, architectural walls and landscape screening. Any or all of the items could be used to comply with noise requirements.

Exterior lighting was to be fully shielded and directed downward.

Backup generators were only to be used when the primary source of electricity was unavailable. Generator testing was capped at 100 hours per generator per year and was to only be done from 8 a.m. to 4 p.m.

An annual report of electrical and water consumption, generator runtime, emissions inventory and noise measurement would be required to be submitted to the city.

If the ordinance is not followed by the data center, the city could initiate a process to revoke the CUP. The center would have the right to a public hearing and have 30 days to correct any violations.

The city has agreed to not sign any non disclosure agreements, opting for transparency.

Mattick commented that he felt this was one of the more comprehensive ordinances he has seen. It includes up-to-date state noise regulations.

The group will accept written public comment until August 19. Comments can be emailed to City Administrator Alissa Stelpflug (alissa@harmonymn.gov) The entire draft ordinace can be found at https://harmonymn.gov/city-of-harmony-draft-data-center-ordinance-now-available-to-review/

A follow-up group planning meeting will be held August 26 at 6 p.m. to tweak the ordinance. The matter will then be turned over to Planning and Zoning for further action. A public hearing may follow.