Lawsuit next likely step for Hoku data center fight after City Council affirms denial a second time
The Pocatello City Council has once again affirmed the denial of a conditional use permit for Lex Developments LLC to build a large-scale AI data center on the former Hoku polysilicon plant site. This decision is expected to lead to a lawsuit, with the developer's 28-day window to file a petition for judicial review beginning after the official adoption on Oct. 1. The dispute involves the city's interpretation of zoning regulations and the developer's provision of utility information.
The Pocatello City Council has reaffirmed its denial of a conditional use permit for Lex Developments LLC's proposed AI data center at the former Hoku polysilicon plant site. The council's decision, which followed a reconsideration request, upheld Hearing Examiner Kathleen Lewis' initial denial.
Councilmember Dakota Bates, a consistent dissenting voice, argued that the project should not have required a conditional use permit in the first place, given its location in an Industrial zone. He highlighted contradictions in the city's assessment of the project's intensity and utility demands. Bates also noted the council's obligation to produce a decision that can withstand judicial review.
Conversely, Councilmember Ann Swanson stated that the burden of proof rested with the applicant, which she believed had not been met. Planning Director Brent McClane explained that the project was routed through the conditional use permit process due to its unlisted use in the city's table and the original application's lack of information regarding water, power, and other utility demands, areas unfamiliar to city staff.
The vote is expected to be formalized on October 1, after which Lex Developments will have 28 days to file a petition for judicial review in Bannock County's 6th Judicial District Court. Lex Developments representative Gus Schultz has indicated the company will