Inver Grove Heights City Council approves moratorium carve-out for proposed data center
The Inver Grove Heights City Council approved a carve-out for QLevr LLC's proposed data center from an existing one-year moratorium. This decision followed a lawsuit filed by QLevr LLC, which argued the city risked millions in damages if it denied the project given it met current ordinances. Neighbors had initially opposed the data center, leading to the moratorium, but some now acknowledge the city's difficult position due to the lawsuit.
The Inver Grove Heights City Council recently voted 3-1 to exempt a proposed data center by QLevr LLC from a one-year moratorium on data center construction. The original moratorium was enacted in June after public opposition to QLevr LLC's project on Carmen Avenue East. However, the developer subsequently filed a lawsuit, claiming the city had no legal grounds to reject their proposal as it complied with existing ordinances.
City attorney Jason Kuboushek warned council members that a legal loss could expose the city to damages between $20 million and $150 million, a cost that would largely fall on taxpayers due to limited insurance coverage. Three councilors, including Tony Scales, John Murphy, and Sue Glvia, sided with this assessment, opting for the carve-out to mitigate financial risk.
Councilor Mary T'Kach cast the lone dissenting vote, expressing belief the city could have prevailed in court and pledging to re-evaluate local ordinances to prevent future similar situations. Despite the carve-out, councilors are set to vote on QLevr LLC's major site plan on September 28, where the developer is expected to commit to safeguards addressing noise and other community concerns.
Resident Zane Hebert acknowledged the council's difficult position, suggesting the carve-out was the most pragmatic move under the circumstances, though he criticized the city for being unprepared for the rapid changes in data center development.