Planning Commission Minutes - 12/03/2024 (Jt Workshop)MINUTES
JOINT CITY COUNCIL/MONTICELLO PLANNING COMMISSION WORKSHOP
Tuesday, December 3, 2024 — 4:45 PM
Monticello Community Center
Planning Commissioners Present: Vice Chair Andrew Tapper, Rick Kothenbeutel,
Planning Commissioners Absent:
City Councilmembers Present:
City Councilmembers Absent:
Staff Present:
1. Call to Order
Teri Lehner, Melissa Robeck, Rob Stark
Mayor Lloyd Hilgart, Charlotte Gabler, Sam Murdoff,
Tracy Hinz, Lee Martie
Rachel Leonard, Angela Schumann, Jennifer Schreiber, Ron
Hackenmueller, Tyler Bevier, Steve Grittman
a. Concept Stage Planned Unit Development Submittal for a 500+ acre technology
campus including data center uses, located within Light Industrial Park and
Development Reserve land use designation areas
Mayor Lloyd Hilgart called the meeting to order at 4:46 p.m.
Community Development Director Angela Schumann opened the meeting with
introductions of staff and concept proposal team.
Angela Schumann began by stating that no formal decisions would be made at this
evening's workshop, and there is no formal land -use application at this time. Angela
Schumann stated that property owners within 350' of the property were mailed notice
regarding the concept meeting. An overview of the formal public hearing process was
given regarding any future land -use applications and the public's opportunity for written
and oral public comment.
Angela Schumann gave an overview of the format for the evening and reminded
policymakers that although a concept review generally comes with site and
development review elements, tonight's discussion was focused on land -use. The land -
use discussion would be focused on data center uses. The discussion would include
whether data centers should be included in the Light -Industrial Park land use
designation in the 2040 Vision + Plan, how and where these types of uses should be
located, and an overview of the submitter's proposed concept in relationship to land
absorption, employment and tax base goals of the City. Angela Schumann turned the
conversation over to City Planner Steve Grittman.
City Planner Steve Grittman gave an overview of the land -use discussion for the evening,
and how the land use proposed fits into the City's existing comprehensive plan and land
use plan. The site proposal is a data center technology campus of approximately 550
acres. Steve Grittman spoke about the common nature of the scale of data center
development, with this proposal at 3 million square feet of building and 200-500 full-
time jobs created. Steve Grittman stated that there would be a significant investment
and tax generation. Steve Grittman stated that data centers are becoming more
common across the United States, yet less so in the state of Minnesota. It was noted
that a few that are under construction in the Twin Cities Metro. Steve Grittman stated
that data center land uses are new to the community as are their impacts to land -use
and utilities in the city.
Steve Grittman provided a reference to the scale of the project, illustrating the
comparative size of Otter Creek business park at 137 acres as compared to the 550 acre
proposed site. The proposed site is within the orderly annexation area, with the north
portion of the site currently guided Light -Industrial Park and south half guided as
Development Reserve by the City's 2040 Plan. Development Reserve does not
designate a specific land -use.
Steve Grittman walked through the interior storage components of the building for data
center activities, their high land value per acre and the lack of customer interaction and
traffic to the industrial site. The 2040 Plan would need to be amended to incorporate
data center uses more specifically in the Light Industrial Park land use category.
Currently, the Light Industrial Park designation includes manufactures and warehouses
and is recommended for amendment as the scale of a data center is not included.
Nick Frattalone, the proposal submitter, introduced the team and their search for a site
throughout the state of Minnesota in terms of open land and access to power. Nick
Frattalone stated that they settled on Monticello due to the developable land area and
the access to power and utilities. Nick Frattalone stated that an end user of the
development has not been identified.
Steve Grittman stated that the primary discussion for policymakers is if the 2040
Comprehensive Plan should accommodate data centers generally within its light
industrial use framework. Steve Grittman reminded the Council and Commission
members that the City has the authority to determine how and where data centers may
be accommodated, and spoke to previous new uses in the city such as cannabis and
brew pubs.
Mayor Lloyd Hilgart requested confirmation on the the total investment. The proposal
team confirmed the investment to be over $3 billion over time.
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Planning Commissioner Andrew Tapper asked for a definition of light -industrial and
heavy industrial and asked about offsite impacts from data centers.
Steve Grittman stated that offsite impacts of the user, such as outdoor storage, noise,
employment levels, and odors that may affect neighbors would lean toward a heavy
industrial designation. Businesses without those impacts or those that can be mitigated
would be light industrial.
Councilmember Charlotte Gabler asked if this is to be one building of 3 million sq. feet
or multiple buildings.
The submitter stated that there would be multiple buildings storing computers within
buildings of approximately 300,000 sq. feet, built over time, and with fencing and berms
to mitigate. There are existing examples in both Elk River and Rosemount, Minnesota.
Councilmember Tracy Hinz asked if tonight's discussion needs to be simply whether data
centers belong in either the light -industrial or heavy industrial land use designation.
Angela Schumann confirmed and stated that would be a policy question for the City in
terms of direction; the concept proposer is requesting feedback on how their concept
relates to the city's land -use objectives in order for them to proceed with a formal
application.
Charlotte Gabler asked if the proposer's plans are scalable to the needs of the end user,
and if the end user does not need the full scale of the project what their plan is for the
balance of the property.
Proposal team representative Jon Rausch stated there are two types of data center
users, hyperscale and co -location groups. This space is most likely a single end -user built
out in a phased manner, if any space was remaining the intention would be a
technology center related build.
Mayor Lloyd Hilgart asked if a comprehensive plan amendment needs to be made either
way, regardless if this is deemed light -industrial or not.
Angela Schumann stated that if there is a desire for data centers in the community, then
there should be discussion on which guided land use designation is appropriate, and
where those should be guided in the city. Angela Schumann walked through how much
land was guided both heavy industrial and light industrial on the Future Land Use Map.
Mayor Lloyd Hilgart asked if an Amazon warehouse is guided heavy or light industrial
with the expected traffic generation, noise pollution and employment levels are. It was
confirmed that warehouses would likely fit either land use classification.
Angela Schumann asked the proposer to discuss the noise impact.
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The concept proposer stated that the cooling of the equipment is what creates the
noise. If there is more water available for cooling, the less power generation is needed
to cool, and thus is quieter. They reminded policymakers that it would depend on the
end user and each end user has their own specifications. The submitter's engineer from
Kimley Horn spoke to the monthly testing of the generators, which will create some
noise inside the campus, yet minimal noise would be heard outside the campus. The
engineer stated that there are local and state statues regulating noise pollution and the
mitigation measures for noise, and that a noise study would be included in the AUAR.
The proposal team continued, explaining the difference in noise between a warehouse
such as Amazon and a data center in that there would be no trucks reversing out of a
loading bay making noise in the late hours of the evening, and less employment traffic
than what you would find with a warehouse.
Councilmember Gabler asked how long Xcel Energy would estimate to complete their
review process. Xcel Energy representative Marie Pflipsen stated that there is a two-
step review process. The first phase is an impact study that is 120 days to look at the
system as a whole, and if any upgrades or expansions are needed. The second phase is a
facility study to narrow in on the details of the scope of expansions possibly needed and
takes another 120 days. Both phases require a cost -share from the applicant.
Angela Schumann reminded policymakers that they have the choice on how and where
data centers are located and have broad authority regarding land use guidance. Zoning
tools are also available.
Tracy Hinz asked about the Development Reserve guidance. Steve Grittman stated that
the comprehensive plan and early annexation plans stated that land areas not
immediately planned for development would be set aside and the City would not study
the impacts of the land use for those areas until ready for development. That is the
Development Reserve, which is a holding zone until development reaches those
boundaries.
Angela Schumann walked through the industrial land absorption with policymakers and
referenced the proposed development acreage relative to other areas planned for
industrial development. She stated that the northwest area of the Monticello Orderly
Annexation Area was the next likely area for growth in terms of industrial development
for jobs and tax base growth, based on the City's planning documents.
City Administrator Rachel Leonard reminded policymakers to think of the land not just in
terms of acreage, but how it would accomplish the goals that they have for the
community and whether the data center is a good fit for those goals.
Councilmember Teri Lehner asked for clarification regarding the high taxable value of
data centers in relation to other industrial uses, and the balance between high taxable
value in exchange for lower number of jobs.
Angela Schumann stated that similar Minnesota cities are going through data center
development scenarios that the City can use to research the tax base impact.
The proposal team stated that the current industrial land use area planned in Monticello
allows for the potential of 9 million square feet of industrial building area; that is greater
than the Twin Cities absorption in the last several years. They walked through how data
centers offer high paying jobs. For a taxation estimate, they use $200 a sq. foot as their
estimate.
Angela Schumann asked policymakers for any questions they have for the proposer to
research for future meetings
Tracy Hinz stated that she would like to understand what variability there is for the
noise generated.
The proposer stated that with a hyperscale development with a single -user, it is
expected that they would walk through the standard land -use approvals process for
review, including noise impact.
Charlotte Gabler asked if the applicant would be interested in the City's Fibernet. The
proposer stated that the user generally wants redundant fiber and will want to own
their own fiber.
Teri Lehner asked how the developer chose the specified location. The proposer stated
the access to power and utilities was paramount in the decision -making process and
access to the highway was not a guiding factor.
Rachel Leonard spoke to how general development interest in this area has expanded
the scope of the Highway 25 study.
Andrew Tapper asked how the residential development nearby relates to the proposal
for the data center. Angela Schumann walked through the location of Haven Ridge's
west border in relation to the proposed data center site.
Mayor Lloyd Hilgart stated that if the noise levels are as low as the proposers indicate,
then data centers would be an appropriate use for Light Industrial Park, as they are
equated to warehouses, but with less traffic.
Councilmember Lee Martie indicated that he had less concerns for the data center in
the Light Industrial Park designation as opposed to the traffic generated by a fulfillment
center.
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Councilmember Tracy Hinz agreed with Councilmember Lee Martie's assessment.
Teri Lehner stated that the data center fits the Light Industrial Park as it does not have a
huge traffic impact nor noise impact and with the setbacks would be a good fit. A
hesitation would be whether this is the right use at this time given the need to replenish
and replace the industrial land and not have all of the community's development
industrial development potential absorbed with one single project.
Melissa Robeck agreed about the vast amount of land being absorbed by the single
project.
Andrew Tapper stated that from a land standpoint there is room for growth elsewhere
in the city, yet this would absorb a great deal of MN-25 highway accessible land. He
reiterated that the available land near the freeway could be envisioned as more of an
employment campus, especially if there is an additional freeway exit near there in the
future.
Mayor Lloyd Hilgart stated that it would be difficult to find 500+ acres of land near the
utilities needed and compared the land to that of the Xcel Nuclear Plant in size.
The proposer stated that with the City of Monticello's remaining acreage is comparable
to the entire Twin Cities industrial of 3.3 million sq. feet of building and would be a great
deal of developable industrial space.
Angela Schumann reminded the concept proposal team, policymakers and the public
that this is not a public hearing, and walked through the process of finding the items
posted on the city's website for additional information and the intention of future
workshops, and that no formal decision and only direction would be made this evening
for future planning commission decisions.
Mayor Lloyd Hilgart asked the public present for comments.
Names or addresses from the public were not given.
The public addressed the policymakers with comments regarding the themes of land
and property -value loss, wildlife concerns, and water usage.
The concept proposer and City Administrator offered to stay after the meeting to meet
one on one with members of the public for additional questions.
City Administrator Rachel Leonard thanked the public for their questions and spoke
about the existing comprehensive utility studies completed for the 10, 20 and 30 year
growth periods in the annexation area and township. She stated that an additional
water and sewer study have been initiated and will be complete in the near future, with
the goal of evaluation of data center impacts on infrastructure.
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2. Adjournment
Angela Schumann stated the meeting needed to be adjourned at 6 p.m. for the regular
Planning Commission meeting.
Recorded By: Tyler Bevier
Date Approved: January 7, 2025
ATTEST:
Angela Schuon� n,�Community Development Director
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