Planning Commission Agenda - 11/03/2025 (Workshop Jt CC-PC)AGENDA
WORKSHOP – JOINT CITY COUNCIL & PLANNING COMMISSION
Monday, November 3, 2025 – 7:00 p.m.
Mississippi Room, Monticello Community Center
City Councilmembers: Mayor Lloyd Hilgart, Kip Christianson, Charlotte Gabler,
Tracy Hinz, Lee Martie
Commissioners: Chair Andrew Tapper, Vice-Chair Melissa Robeck,
Rick Kothenbeutel, Teri Lehner, Rob Stark
Staff: Rachel Leonard, Angela Schumann, Matt Leonard, Bob Ferguson,
Tyler Bevier
1. General Business
A. Call to Order
B. Roll Call
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
2. Adjournment
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1C. CONTINUED WORKSHOP: 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 – UPDATED
November 2025 Update
The November 3, 2025 joint City Council and Planning Commission workshop is intended
to focus on the ordinance process for DCPUD application and review.
A joint City Council and Planning Commission workshop has also been scheduled for
November 10, 2025 to discuss the full revised draft ordinance before moving forward to
a Planning Commission public hearing. The revised draft ordinance will be available in
advance of the November 10th workshop. A memo with review considerations will be
provided at that time.
The staff report below was provided for prior joint workshops on this topic and is
provided again for reference as the City Council and Planning Commission continue their
discussion. Also included for reference as Supporting Data is a consolidated timeline of
the City’s process for the development of land use policy relating to data center uses.
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Context
The City has been evaluating land use regulations for data center development in
Monticello, following a series of inquiries for potential data center development in the
community.
In reviewing the Monticello 2040 Vision + Plan in response to the inquiries, city staff
determined that the 2040 Plan did not clearly identify how data center uses fit within
the City’s plans for future growth.
As such, City leaders first need to determine whether and how to allow data centers as a
specific land use within the City’s planning documents before any decision on a specific
project or development can be made.
Land use policy as provided in the Monticello 2040 Vision + Plan and regulation language
within city codes must come before any individual project can be considered for
development in the community.
Although two of the data center inquirers submitted conceptual information for data
center development at two different locations in the community, the City cannot
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evaluate any formal application for land use development for data centers until clear
land use policy and regulations are put into place.
Throughout 2025, the Planning Commission and City Council held a series of public
meetings and workshops to discuss how these unique land uses may be considered for
development in Monticello.
The purpose of the workshop series is to allow the Planning Commission and City
Council to continue to discuss land use regulations for data center uses. Staff are
seeking additional input from the City Council and Planning Commission to further refine
the draft zoning ordinance for data centers, with specific focus on the intent of the
Monticello 2040 Vision + Plan and the public comments received during the hearing on
the ordinance.
Pending the feedback received, a revised draft ordinance will be prepared for
consideration. A new public hearing will be required for its review.
Land Use Planning & Authority
Land use planning is an authority granted to local governments by the State and is one
of the City’s primary responsibilities. Specifically, Minnesota Statute 462 governs
municipal planning and zoning. Land use regulation is intended to allow local
governments to provide for public health, safety, and general welfare.
In Minnesota, the foundation of land use planning is a Comprehensive Plan. The City’s
adopted Comprehensive Plan is the Monticello 2040 Vision + Plan.
The 2040 Plan is the city’s blueprint for growth and is the foundation upon which
development and land use decisions are based. It is the official adopted policy
regarding the future location, character, and quality of physical development, and the
conservation and enjoyment of the natural environment.
The 2040 Plan is used by the City Council, Planning Commission, other boards and
Commissions, and City staff to inform and guide policy decisions regarding land use,
development and infrastructure improvements within the City. Developers, real estate
professionals and property owners also use the Plan as an informative document to
understand the City’s vision and policies regarding land use and development.
Following evaluation and a public hearing, the City adopted amendments to the
Monticello 2040 Vision + Plan in early 2025 identifying the land use designation
appropriate to data center uses and outlining land use goals and priorities for data
center development.
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Through the comprehensive plan amendment process, the City determined that Data
Center development has unique characteristics and considerations for site selection,
including the following:
1. Data Centers, particularly “hyper-scale” facilities, often consume vast amounts of
land.
2. Monticello’s growth area land supply is potentially large but is controlled by the
Orderly Annexation agreement with the Township, which includes a tiered level
of development before expansion is allowed.
3. Monticello’s supply of industrial land is limited by service considerations,
including high-capacity road access, sanitary sewer and water capacity, and land
use compatibility.
4. Data Centers can create significant demands on municipal utilities, but this
aspect is also highly variable, as the nature of individual facilities can vary greatly.
5. Data Centers have the potential for off-site impacts to neighboring land uses
which can also vary greatly from end user to end user.
6. Data Centers have highly individualized internal design requirements not easily
accounted for in most common land use regulatory environments.
7. The City’s primary goals for industrial development include both employment
and tax base. Data Centers can meet the tax base goal. However, they are
typically more limited with regard to employment – especially employment
density.
8. Data Centers remain a relatively new land use in many communities, and studied
impacts remain to be fully comprehended.
At the time of the adoption of the 2040 Plan amendments, it was recognized that the
City would need to develop a regulatory framework within the zoning ordinance to
address the unique development characteristics of data centers.
While the comprehensive plan provides broad guidance for land use policy, it is the
zoning ordinance and other City codes that are the regulatory tools used to implement
the land use policy.
Zoning Ordinance Regulation
The comprehensive plan considerations noted above provide the groundwork for zoning
regulations to accomplish the following objectives:
1. Accommodate Data Center development as a unique land use in Monticello.
2. Ensure the unique demands placed on the City’s services are adequately funded
by the users that generate those demands.
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3. Acknowledge that while Data Centers may not create large numbers of
employment, the jobs created are often unique and highly skilled, and consistent
with the City’s economic development goals.
4. Ensure the ongoing tax base generation that Data Center development
represents, again consistent with the City’s economic development goals.
5. Create a process that is customized to the specific impacts and needs of this
particular land use, irrespective of other typical zoning approaches.
6. Confirm that applications for such development provide adequate amounts and
types of information to make land use and other decisions and development
plans, including public infrastructure investment.
7. Verify that when providing municipal services to data center development, the
City retains the ability to provide such services to both existing users and
reasonably anticipated new growth.
8. Establish a process that provides for decision on land use entitlements, while
protecting and advancing the interests of the City, and also respecting the needs
of the developers and end users.
Data centers are highly individualized development, each with their own design,
construction and systems. Any ordinance developed must set the minimum expectation
for all data centers to meet while recognizing that variability exists.
The City’s role is to provide clear regulations in support of the City’s policy goals and
then evaluate the information provided by a land use applicant against those policies
and ordinances. To successfully achieve this, the ordinance must require all
information needed to adequately address the City’s goals. It is specifically the
developer/applicant’s responsibility to provide information on their specific project
and impact as part of any land use application process.
The Planning Commission held two workshops in July 2025 to discuss an ordinance
approach and provide input on the components of a proposed data center ordinance.
The second workshop was held jointly with the City Council. A draft ordinance was
developed based on the 2040 Plan amendments and workshop discussion.
The draft ordinance was presented for consideration to the Planning Commission in
August and September and a public hearing was held on the draft ordinance.
A significant amount of public comment was taken during the hearing, and the record
includes written comments. These are included with this agenda for reference.
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Development Proposals
A prospective developer of a data center campus concept has requested that the City
evaluate the environmental impact of development of land as a technology campus
including data centers. The development scenario requires an environmental review
process outlined by state statutes and rules. The environmental review is a separate
process from the land use policy and regulations being considered by the City. The
environmental review documents are intended to inform future decision-making on land
use applications.
As noted above, the City cannot consider land use applications or decisions for data
centers until an ordinance regulating the land use as guided in the Monticello 2040
Vision + Plan are adopted.
SUPPORTING DATA
A. Timeline Overview – City Land Use Process
Data Center Timeline Review:
City Land Use Process Events & Actions
10/29/2025
The timeline below illustrates the research, review, and decisions by city council, boards, and commissions related to the
general introduction of data center land uses within the city.
Event & Details Materials
July 22, 2024: City Council Special Meeting
Topic: Data Center Discussion
• Agenda
• Minutes (PDF)
September 23, 2024: Special Joint City Council & Planning Commission & Economic
Development Authority Workshop
Topic: Data Center Discussion & Research
• Agenda
• Minutes (PDF)
February 4, 2025: Planning Commission Regular Meeting
Public Hearing: Item 2A. Comprehensive Plan Amendment for Technology Industry Land Uses
• Agenda
• Minutes (PDF)
February 24, 2025: City Council Regular Meeting
Item 4A. Comprehensive Plan Amendment for Technology Industry Land Uses
• Agenda
• Minutes (PDF)
June 2, 2025: City Council Special Meeting
Topic: Discussion on Data Centers
• Agenda
• Minutes (PDF)
July 1, 2025: Planning Commission Workshop
Topic: Draft Data Center Zoning Ordinance
• Agenda
• Minutes (PDF)
July 21, 2025: Special City Council & Planning Commission Joint Workshop
Topic: Draft Data Center Zoning Ordinance
• Agenda
• Minutes (PDF)
August 19, 2025: Planning Commission Special Meeting
Public Hearing: Item 2. Draft Data Center Zoning Ordinance
• Agenda
• Draft minutes
to be approved
11/3
September 2, 2025: Planning Commission Regular Meeting
Continued Public Hearing: Item 2A. Data Center Zoning Ordinance
• Agenda
• Draft minutes
to be approved
11/3
September 24, 2025: Special City Council & Planning Commission Joint Workshop
Topic: Draft Data Center Zoning Ordinance; Public Question & Answer Following the Workshop
• Agenda
• Minutes Not
Yet Available
October 7, 2025: Special City Council & Planning Commission Joint Workshop
Topic: Draft Data Center Zoning Ordinance
• Agenda
• Minutes (PDF)
November 3, 2025: Special City Council & Planning Commission Joint Workshop
Topic: Draft Data Center Zoning Ordinance