Lawsuit challenges Cave City data center moratorium
Kentucky Industrial Alliance LLC has filed a lawsuit against Cave City, challenging a recently enacted 12-month moratorium on data center development. The company argues the moratorium is invalid and seeks a court order to require officials to review its proposed development plan under previous zoning regulations. Residents had previously voiced concerns about infrastructure and utility demands related to potential data center projects.
Kentucky Industrial Alliance LLC has filed a lawsuit in Barren Circuit Court against the City of Cave City, its City Council, and the Joint City-County Planning Commission of Barren County. The suit challenges Cave City's recently enacted 12-month moratorium on data center development, which was approved following weeks of public opposition and debate over potential data center projects.
The company argues that its development plan, submitted on May 11 for property within the annexed Branstetter Farm area, should be reviewed under the zoning regulations in place at the time of submission. The lawsuit claims the city failed to follow proper planning and zoning procedures, treating the moratorium as an effective zoning text amendment without the required public hearings and planning commission review.
Furthermore, Kentucky Industrial Alliance alleges the moratorium is arbitrary, citing that the city had already reviewed proposed regulations for data centers but opted for a blanket prohibition instead. The complaint also asserts violations of due process rights and argues the company acquired vested rights in the proposed development through significant land purchases and investments made prior to the moratorium's enactment.
Cave City Council member Leticia Cline publicly disputed portions of the lawsuit, stating the company's May 11 submission was incomplete. The city council has voted to retain outside legal counsel to represent them in the pending litigation.