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City Council Resolution 2025-16CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2025-16 A RESOLUTION OF THE CITY OF MONTICELLO APPROVING AN AMENDMENT TO THE MONTICELLO 2040 VISION + PLAN (THE "COMPREHENSIVE PLAN") MODIFYING RELATED CHAPTERS AND SECTIONS FOR THE INCLUSION OF "DATA CENTERS" WHEREAS, the City regulates land use through its Comprehensive Plan (currently the Monticello 2040 Vision + Plan), implemented through its development regulations, including its subdivision and zoning ordinances; and WHEREAS, the City utilizes a process for considering amendments to the Comprehensive Plan from time to time, as various conditions or needs may warrant such considerations; and WHEREAS, the City finds that the best interests of the City's land use goals and objectives, and reasonable flexibility for development planning and timing, would be best served by amending the current Comprehensive Plan to accommodate "data centers" as a unique land use category, new to the Monticello planning area; and WHEREAS, with the applicable amendment, the City would establish and retain land use control over projects of this type, to ensure more effective planning, cost-efficient development, and preservation of other City goals and objectives related to industrial and economic development; and WHEREAS, the Planning Commission has reviewed the amendments modifying the applicable sections of the Comprehensive Plan and their effect on the City's land use plans and policies; and WHEREAS, the Planning Commission held a public hearing on February 4t", 2025 on the proposal and members of the public were provided the opportunity to present information to the Planning Commission; and WHEREAS, the Planning Commission considered all of the comments and the staff report and has recommended approval of the proposed amendment based on findings in Resolution PC-2025-06; and WHEREAS, the City Council has considered all of the comments and the staff report, which are incorporated by reference into the resolution the following Findings of Fact in relation to the recommendation of approval: CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2025-16 1. The City's land use planning documents direct a balanced approach to development, requiring adherence to high standards of use, but also recognizing the needs of the private development market to efficiently plan for and finance that development. 2. The City's land use goals for industrial development as identified in the Monticello 2040 Vision + Plan include an emphasis on high -wage and high -volume employment, as well as tax -base stabilization and diversification. 3. The incorporation of data center development has the potential to accomplish tax -base stability and diversity. 4. The incorporation of data center development, due to its concentration of use has the potential to create employment that includes high -wage positions, and periodically, levels of employment that can be a component of the City's economic development goals, even though total employment may be less than other industrial uses. 5. By retaining the ability to limit such uses in a controlled fashion, and only to suitable locations, the potential allowance of data center development can accommodate both the City's economic development goals and objectives, as well as its interest in quality land planning. 6. The City may consider the following factors in permitting data center development, providing assurances that such development is advancing the City's land use and economic development interests: a. Proximity to Residential Land Uses: The City will review data center development requests for compatibility with existing and future residential development areas. b. Noise and other Potential Site Impacts. The City will review and consider data center development only when concerns related to nuisance noise and/or other site impacts can be satisfactorily addressed with demonstrated data. c. Utility Demands: The City will require that the developer demonstrate adequate capacity and design to serve these users to the satisfaction of the City, without creating a shortage of capacity for other development. d. Transportation: The City will require that transportation impacts and demands are studied to ensure that road networks are maintained and advanced, and that capacity and/or design improvements are accounted for to the satisfaction of the City as a part of such development. e. The City will require that any such developer will study and detail transportation impacts and present a thorough and adequate multi -modal circulation plan, as determined by the City. 2 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2025-16 f. Industrial Land Supply: The City will evaluate, and use as a consideration of approval or denial, whether adequate supplies of land to accommodate other light -industrial development are available if data center development consumes large areas currently guided. g. The City will examine, and use as a consideration of approval or denial, whether the City's current Orderly Annexation boundaries and Orderly Annexation Agreement expansion language will not negatively impact other land use and growth considerations as land is consumed by data center uses. h. Economic/Fiscal Issues: The City will require execution of development contracts including various financial tools and securities to ensure that the financial obligations of the developer will be met and bind future parties to achieve the goals of the projects under consideration. Electric Power Usage: Data center coordination with energy service providers and information on their permitting process may be a factor in local approval or denial. The information must demonstrate to the satisfaction of the City whether the electric power supply can remain consistent and robust for others in and around the community, without threat of power loss due to the development of data centers in the community. j. The City will evaluate other site -specific considerations through applicable implementation tools, including the zoning and subdivision ordinance. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monticello, Minnesota, that the proposed amendments to the Monticello 2040 Vision + Plan as provided in in Exhibit A to this resolution are approved, based on the findings noted herein. ADOPTED this 24t" day of February, 2025 by the City Council of the City of Monticello, Minnesota. ATTEST: 4 Je nifer �hrWr, City Clerk MONTICELLO CITY COUNCIL By:J)d Lloyd Hilgart, May r 3 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2025-16 EXHIBIT A AN AMENDMENT TO THE MONTICELLO COMPREHENSIVE PLAN (2040 MONTICELLO VISION + PLAN) THE MONTICELLO COMPREHENSIVE PLAN (2040 MONTICELLO VISION + PLAN) IS HEREBY AMENDED TO INCORPORATE THE FOLLOWING UPDATES, REVISIONS, AND MODIFICATIONS TO THE SPECIFIED SECTIONS OF THE PLAN. Section 1. The land use description of the Employment Campus (EC) designation is hereby amended to include the additional language: "Computer technology" land uses are intended and commonly read as technology jobs considering the employment goals of this land use category. Computer Technology excludes the development of low -employment technology land uses, including data centers. The Employment Campus designation is intended to apply to areas of Monticello where a high concentration of jobs is desired. Section 2. The land use description of the Light Industrial Park (LIP) designation is hereby amended to include the additional language: "Computer technology" includes active technology uses dominated by office and research - oriented businesses. The Light Industrial Designation accommodates Data Center (or similar "Technology Campus") development for passive computer storage and processing only when specific elements are demonstrated. Consideration of these uses in the LIP areas shall be subject to the following review requirements, among others as determined on a case -by -case basis: a. The City's 2040 Plan recognizes data centers as a singularly unique land use due to size and scope. b. Data center use locations will not create conflict with other land uses, especially residential land uses, through off -site impacts including unusual amounts of noise, lights, odors, or other similar aspects. Data center users will demonstrate site conditions that meet this condition and are consistent with other light industrial development. rd CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2025-16 c. Where data center development creates shortages in land supply, utility services, electric generation service to the broader area, or any other impacts on the City of Monticello or its neighboring communities, and which are not specifically mitigated by the data center developer and its associated partners, the City is under no obligation to accommodate the use within any land use district or location, or through any land use process. d. Data center uses shall demonstrate convincingly that its burden on municipal services, infrastructure, or fiscal condition is completely mitigated by the data center project and its developers, and such mitigation is sustainable by its subsequent owners, users, and other related entities. e. The data center will not inhibit future growth; it will accommodate and facilitate the extension of efficient and orderly municipal infrastructure to the edge of the development property consistent with the City's plans for growth. f. Full and clear assurances from both the data center use and the electric utility provider that data center development will not create threats of power loss to the community, nor limit the city's other growth and development interests in the future. Data Center development is considered against each of these factors, and other site- or use - specific factors that may be relevant at the time of any such proposal. The City reserves the discretion to determine that any location or project has the potential to imperil the City's infrastructure, related regional infrastructure, the City's future land use goals, the City's various economic development goals and objectives, the City's financial and fiscal obligations and projections, or any other reasonable area of City authority. No area guided LIP (or any other land use category) shall have an inherent right to Data Center development under this amendment. Section 3: The land use description of the General Industrial (GI) designation is hereby amended to include the additional language: Technology campus or data center development is not viewed as appropriate in the General Industrial designation, as such land uses anticipate infrastructure that could be under- or over - utilized used by this land use designation.