Planning Commission Minutes - 07/01/2025 (Workshop)MINUTES
WORKSHOP MEETING — PLANNING COMMISSION
Tuesday, July 1, 2025 - 5:00 p.m.
Academy Room, Monticello Community Center
Commissioners Present: Chair Andrew Tapper, Vice -Chair Melissa Robeck, Rick
Kothenbeutel
Commissioners Absent: Rob Stark, Teri Lehner
Council Liaison Present: Councilmember Kip Christianson
Staff Present: Angela Schumann, Steve Grittman, Bob Ferguson, Anne Mueller,
Rachel Leonard
1.
2.
Call M Order
Chair Tapper called the workshop meeting of the Monticello Planning Commission to
order at 5:00 p.m.
Discussion on ordinance framework to define & regulate Data Center uses
City Planner Steve Grittman introduced the discussion, explaining that recent
amendments to the Monticello 2040 Plan provided for consideration of data centers as
an allowable land use, but that the City now needs to develop an ordinance that
addresses the regulation of any data center uses.
Steve Grittman spoke to the scale of data centers as a factor in how the use may impact
a light industrial park zoning district and the ordinance needed. Steve Grittman also
explained the process to reguide land use within the Monticello Orderly Annexation
Area (MOAA), noting the recent requests for land use amendment to Light Industrial
Park.
Steve Grittman explained that as related to the development of an ordinance for data
center uses, staff have reviewed various options including a data center overlay district
with subsequent conditional use permit. Through the process of evaluating the potential
options for regulation, staff is proposing a Planned Unit Development (PUD) district
specific to data center uses, which protects the City's interests and provides regulations
specific to these types of allowed uses and their impacts.
Steve Grittman indicated that as initially conceived, the standard City process for
platting and subdivision would be a requirement of the data center PUD. The PUD
process would also require rezoning to data center PUD, and require a development and
final stage review for planned unit development (PUD). The PUD process would require
that the application for PUD address the unique utility aspects of the uses, specifically
water and sewer for energy cooling and wastewater. Steve Grittman stated that the
data center PUD process could also require a fiscal impact study for tax impacts and
benefits, along with an understanding of the applicant's proposal to pay for
improvements to impacted infrastructure. The proprietary nature of site details for end
users of data center development projects was also noted. In summary, he stated that
Planning Commission Workshop Meeting Minutes — 07/01/25
the intent of the data center PUD ordinance development approach proposed is to
create parameters governing the external impacts of the uses, while recognizing some
flexibility internal to the development site itself, given the nature of the use.
Community Development Director Angela Schumann spoke to multitude of details
received at a typical PUD development stage plan phase, which are intended to address
the details unique to each application. In the case of data centers, Commissioners were
encouraged to consider community and land use impacts to the surrounding area in the
development of specific ordinance requirements.
Steve Grittman described how the data center PUD process may be handled differently
from a traditional PUD process and why the City should vary from standard, with
primary focus on protecting the public interest by documenting expectations and
criteria into an ordinance, and specifically outlining the economic development
opportunity represented.
Chair Andrew Tapper stated that he believed the primary community concerns will be
for sufficient power and water supply to meet the demand and for the noise pollution
potential of data centers. Andrew Tapper spoke on the need for environmental study to
satisfy the water and noise concerns and how the City will need to communicate how it
is addressing community concerns.
Angela Schumann said the City attorney's recommendation is not to consider an
application for rezoning to a data center PUD until a completed environmental report is
received and completed to satisfaction of the City. She noted that the required
environmental document outlines other required permitting by state and federal
governing agencies.
Steve Grittman addressed the idea of including a cost -benefit analysis. Andrew Tapper
stated that may be beneficial for financial transparency and to address questions
relating to how much it will cost taxpayers to build/extend utilities and infrastructure to
the new development.
Steve Grittman reflected on how the technology is rapidly evolving. The ordinance
would be developed with the goal of anticipating those impacts. Andrew Tapper
concurred. Steve Grittman spoke to the fiscal study impacts being identified in a
development agreement contract between the developer and the City.
Andrew Tapper addressed the potential risk to the City if a business venture were to fail,
leaving behind an abandoned property or financial burden. Angela Schumann advised
Commissioners to consider how future agreements might address such worst -case
scenarios. She also referenced the workshop held with the Council, in which both the
taxbase opportunity and the importance of financial responsibilities were discussed.
Andrew Tapper stated his concern is not for an empty building, but for the increased
infrastructure extended for the industrial use that may not be needed. The capacity and
scale may be overbuilt to the needs of the site if not a data center.
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Planning Commission Workshop Meeting Minutes — 07/01/25
Angela Schumann discussed the Fallon Avenue utility extension project and the utility
oversizing planned in conjunction with Haven Ridge West, which is engineered to serve
to the edge of the Township to capture future development demands beyond the
MOAA. She noted that the future wastewater treatment and water treatment plants
were also analyzed for scalability.
Councilmember Kip Christianson stated that the City would need to evaluate proposals
for their ability to generate the anticipated revenue for the City, and to build In
mechanisms for the necessary contributions to support needed infrastructure.
Councilmember Christianson noted that the City needed to develop an ordinance to
respond to the current opportunity for data center development.
Andrew Tapper stated that he was interested in how the ordinance could approach an
over -development, or the proposing potential downsizing of acreage, particularly as
related to the cost participation for impacts and infrastructure. Angela Schumann noted
that the Alternative Urban Areawide Review (AUAR) process addresses development
capacity and such changes could require a new environmental review. A PUD
amendment process could also be required in addition.
Councilmember Christianson asked what phase of the PUD will address fiscal
requirements.
Steve Grittman indicated that the intent would be to require the fiscal studies and
revenues at the development stage, with an agreement as the process moves forward
to define and require those securities.
Councilmember Christianson requested information on the understanding of the
ordinance by potential users, as well as information on how long the data center PUD
process could take in terms of working through an application.
Angela Schumann confirmed that the Commission was comfortable with the data center
planned unit development process, which is distinct from the current planned unit
development process. With that confirmation, she explained that staff would then
move forward to develop an ordinance for external control and internal site design.
Andrew Tapper asked about the timeline for environmental and utilities studies. Angela
Schumann stated that the current schedule would have the will finalized before the end
of the year.
Andrew Tapper spoke in favor of a workshop meeting setting for continued discussion
on the data center PUD standards for the proposed ordinance. Councilmember
Christianson recommended including Council in the workshop.
3. Adjournment
By consensus, the meeting adjourned at 6:00 p.m.
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Planning Commission Workshop Meeting Minutes — 07/01/25
Recorder: Anne Mueller W
Approved: September 2, 2025
Attest: `01v
Angela Sc ,Community evelopment Director