Data center lawsuit could cost Inver Grove Heights taxpayers millions; path to avoid it moves ahead
Inver Grove Heights is facing a lawsuit from data center company Clever, which could cost taxpayers $20 million, following the city council's enactment of a one-year data center moratorium. The city council voted to exclude Clever from the moratorium to resolve the lawsuit, but residents are demanding a public hearing before a final decision.
Inver Grove Heights, Minnesota, is embroiled in a legal battle with data center company Clever, which could potentially cost city taxpayers $20 million. The lawsuit stems from the city council's decision to pass a one-year moratorium on data center development after Clever had submitted its application and believed it was in good standing. Mayor Mary Hamann-Roland illustrated the financial impact, stating that losing the lawsuit would increase an average resident's annual city taxes by $1,220, or 67%.
To resolve the lawsuit, a city lawyer indicated that the suit would be dropped if Clever's proposed 54,000-square-foot facility at the former Travel Tags building on Carman Avenue East was excluded from the recently enacted moratorium. The city council has voted to approve this exclusion, but two more readings and a final vote are still required.
During public comment, several residents emphasized the need for a public hearing before the final vote, stressing that it would allow the community to provide feedback to the council. Currently, the city is encouraging written comments, but the mayor and council would need to specifically add a public hearing to the process. At least two council members reportedly support the idea of a public hearing.