City Council Minutes 09-24-2025 Joint WorkshopMINUTES
WORKSHOP - JOINT MONTICELLO PLANNING COMMISSION/CITY COUNCIL
Wednesday, September 24, 2025 - 5:00 p.m.
Monticello Community Center
City Councilmembers: Mayor Lloyd Hilgart, Kip Christianson, Charlotte Gabler, Tracy Hinz,
Lee Martie
Commissioners: Chair Andrew Tapper, Rick Kothenbeutel, Teri Lehner,
Melissa Robeck and Rob Stark
Staff Present: Rachel Leonard, Angela Schumann, Steve Grittman, Matt Leonard,
Ryan Melhouse, Bob Ferguson, Jennifer Schreiber
1. General Business
A. Call to Order
Mayor Hilgart and Chair Tapper called the joint workshop of the Monticello Planning
Commission and City Council to order at 5:00 p.m.
B. Roll Call
Chair Tapper called the roll. All City Councilmembers and Planning Commissioners were
in attendance, with staff, for the Workshop.
C. Review and discussion on draft amendment to City Code, Title XV, Land Usage,
Chapter 153: Zoning Ordinance to define and regulate data center and technology
campus land uses within the City
Community Development Director Angela Schumann stated that the workshop is an
opportunity for City Council and Planning Commission to discuss the draft zoning
ordinance for data center development and review comments received regarding the
ordinance during the Planning Commission public hearing. Ms. Schumann stated that
the workshop is not for decision -making, but for City Council and Planning Commission
discussion on the draft ordinance.
Ms. Schumann stated that the zoning ordinance is a tool for the type of development
Councilmembers and Commissioners wish to achieve and establishes the regulations for
how a development proposal will be reviewed. Ms. Schumann explained that with the
feedback received, revisions will be brought forward for an additional Planning
Commission public hearing.
Ms. Schumann stated a Q&A session for public questions on the ordinance would follow
the workshop.
Ms. Schumann touched on the concept data center development proposals presented in
2024 as leading to the City review of land -use regulations for potential data center
development. She stated that regulatory language established in a zoning ordinance
must come prior to any application consideration by the City.
Joint City Council -Planning Commission Workshop — 09/24/2025
City Planner Steve Grittman reviewed the City's authority and responsibility for
regulating land use to support orderly and efficient development, to serve citizens more
effectively, to provide less costly public services, and to achieve a more secure tax base.
Mr. Grittman described the City's economic development goals for tax base and
employment growth, including stabilization and diversification of tax base. He indicated
that amendments to the 2040 Vision + Plan had been adopted to incorporate data
center development in light industrial park areas and to clarify technology with these
goals in mind.
Mr. Grittman explained that the ordinance for Data Center planned unit development
(PUD) requires similar considerations as PUD but implements factors specific to data
center operations and sets minimum development requirements.
Ms. Schumann walked through the general categories of the draft DCPUD ordinance,
including performance standards, submittal requirements, and enhancements and other
elements relating to data center development.
Regarding submittal requirements, Councilmember Gabler asked when the Alternative
Urban Areawide Review (AUAR) be introduced into the process. Ms. Schumann
explained the DCPUD ordinance is intended to be informed by environmental study; the
AUAR itself is a separate process.
Councilmember Hinz asked that staff provide clarity on the review process involving
stakeholders and the level of accountability for technology improvements.
Councilmember Christianson also asked staff to address how land use review may
coordinate with other required studies, such as power studies and improvements. Mr.
Christianson also shared his concern for City water and sewer utilities reserves and
incorporating the best mitigation measures.
Mr. Grittman walked through some of the primary concerns raised during the public
hearing for discussion.
Mr. Grittman said a major concern is water usage and demand for data centers. He
explained the draft ordinance incorporates a utility supply and demand study and a site
improvement agreement. He noted involvement by other regulatory entities including
MN Department of Natural Resources and environmental reviews are required
depending on the consumption and scale of a site. Concerns as to who may pay for
utilities were heard from many citizens, which he indicated are intended to be
addressed by an improvement plan agreement prepared by the city for a development.
Mr. Grittman said enforcement actions would be taken by the city when a site
improvement contract is not adhered to. Ms. Schumann added the draft ordinance is
also intended to provide the regulations that would be applicable to any scale of
potential data center.
Councilmember Gabler how water usage will be determined. Mr. Grittman said the
threshold could be incorporated in the developer improvement plan agreement.
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Joint City Council -Planning Commission Workshop — 09/24/2025
Commissioner Lehner asked what would occur in the event an agreement is in place and
mid -development another developer were to take over.
Mr. Grittman responded project phasing will be factored as part of the site
improvement plan to address any and suggested the ordinance language could be
revised for clarity on that point.
City Engineer/Public Works Director Matt Leonard said the new ordinance is intended to
require that any new water or wastewater system should be installed as to not impede
the current demand and development per the 2040 Plan. As part of the DCPUD, the
applicant is required to supply a demand study to entail how and if the City may handle
utilities needed for a niche data center project.
City Administrator Rachel Leonard explained the city currently has utility studies in place
as part of the comprehensive plan and development proposals which would be
evaluated against those plans.
Mr. Leonard spoke in detail to the state water regulations and aquifer system
monitoring.
Administrator Leonard also noted recent state legislation requiring additional DNR
review of water appropriations.
Mr. Grittman discussed draft ordinance language for general infrastructure which
requires platting for right-of-way and easements consistent with supply and demand
studies that are built into the process, including an understanding of costs for a
potential project and assigning project costs in the development contract.
Members reinforced the need for stronger ordinance language in that regard to protect
residents and current taxpayers and to designate the applicant bears the burden of
infrastructure costs.
Mr. Grittman reviewed concerns from the hearing on power consumption, noting the
city does not manage the service or supply for electric demands. He did note the city is
aware that power providers commonly require a power study for electrical service,
supply and infrastructure needs specific to this type of use. Commissioner Rick
Kothenbeutel addressed concerns from several citizens suspecting increased electric
bills; clarified the utility rates are set statewide by Public Utilities Commission (PUC), not
on a city basis.
Mr. Grittman spoke to mitigation measures proposed in the ordinance for these uses,
including buffering, landscaping, and lighting.
Ms. Schumann added the user is required to pay for their own energy study and the
draft ordinance requires information on the power study for accountability.
There was a brief discussion on generators and equipment common to some data
centers.
Ms. Schumann said the city can set restrictions for these types of uses within PUDs,
and/or can allow them but focus on mitigating their potential impacts.
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Joint City Council -Planning Commission Workshop — 09/24/2025
Members voiced concerns regarding noise from cooling fans and generators, with a
consensus on noise being a significant concern. The members discussed the possibility of
setting stricter limits than State standards. The challenges of enforcement of noise
regulations was also discussed.
Ms. Schumann spoke to needing solid regulations to allow for enforcement, including
legal action.
The Minnesota Pollution Control Agency (MPCA) requirement calculations were shared
for discussion. Mr. Grittman said the city is at liberty to set a higher requirement. It was
noted that noise compliance is currently set as a minimum performance standard in the
draft ordinance.
Mayor Hilgart referenced a data center facility tour in Rosemount that provided context
on some of the noted concerns regarding noise and back-up generators.
Ms. Schumann confirmed a future joint workshop for Council and Commission will be
scheduled to continue discussion.
2. Adjournment
By consensus, the meeting ended at 7:02 p.m.
V "v
Recorded by: Anne Mueller )p4
Date Approved: November 10, 2025
Recorder: Jennifer Schreibe
City Administrator
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