Monticello council split on key data center decisions

The Monticello City Council is deeply divided over a proposed ordinance intended to regulate future data center development within the city. During an April 13 discussion, council members failed to reach consensus on critical rules, including limits on project size and setback requirements from residential areas. Council member Charlotte Gabler advocated for stricter regulations, proposing a 25-acre maximum project size and a 1,200-foot setback from residential properties. She argued these measures were necessary to ensure compatibility with existing land uses and mitigate impacts on neighborhoods. However, other council members and staff, including former City Administrator Jeff O’Neill, expressed concerns that such stringent caps could effectively deter all data center development, as these facilities typically require significant scale. Discussions also covered localized impacts like noise and lighting, and broader concerns such as energy demand, water use, and infrastructure strain. Council member Tracy Hinz and other officials suggested that performance standards and project-specific conditions might be more effective in managing long-term impacts than fixed ordinance standards. Motions by Gabler for a 1,200-foot setback and by Council member Kip Christianson for a 300-foot setback both failed to gain majority support. In response to the ongoing disagreements, Gabler proposed forming a citizen committee to further study data center impacts, though this idea was met with skepticism by Mayor Lloyd Hilgart and Hinz, who questioned its necessity given prior public input and staff analysis. The council also discussed construction-related impacts, including potential limits on working hours. With key questions unresolved and audience reactions at times contentious, staff are expected to revise the ordinance for further council review, with a potential vote scheduled for the April 27 meeting.