Inver Grove Heights exempts data center project from city moratorium
The Inver Grove Heights City Council voted to exempt a proposed 55,000-square-foot data center project from the city's one-year moratorium on data centers. This decision was made after the developer, QLevr, filed a lawsuit against the city, which officials feared could cost the city at least $20 million in damages.
The Inver Grove Heights City Council has voted to exempt a specific 55,000-square-foot data center project from a one-year moratorium on such developments, despite initially supporting the ban. The decision came after Florida-based developer QLevr, along with the property owner, filed a lawsuit in Dakota County District Court in July, alleging the moratorium was unlawful and designed to halt their project, which had followed all applicable zoning rules.
City officials expressed concerns that losing the lawsuit could cost Inver Grove Heights at least $20 million in damages. Council Member Tony Scales, who had previously supported the moratorium, voted for the exemption, stating he struggled with continuing a fight that would be costly for residents and still likely result in the project's approval. QLevr's attorneys offered to dismiss the lawsuit without damages if the project was excluded from the moratorium.
Residents had initially raised concerns about data centers, leading to the moratorium's approval in June on a 3-2 vote. With the exemption approved for this specific project, the council is now expected to consider its site plan application later this month. The one-year moratorium remains in effect for any other proposed data center projects in Inver Grove Heights.