Residents file lawsuit against city of Festus over $6B data center project

Festus, Missouri, is currently facing a legal challenge from its residents over the approval of a massive $6 billion hyperscale data center project. The lawsuit, filed by a group of residents organized as "Wake Up Jeffco LLC" and represented by attorney Stephen Jeffery of Jeffery Law Group, aims to invalidate the city's rezoning decisions and a development agreement with developer CRG Acquisition. This legal action follows months of public outcry and the recent approval of the development agreement by the Festus City Board. The core allegations of the lawsuit include claims of "spot zoning" benefiting only the developer and specific property owners rather than the broader community, and that the rezoning decisions violate Missouri law by not promoting the general welfare. Furthermore, the residents assert that the City violated its own code and the Missouri Open Records Law by conducting secret discussions and failing to provide proper public notice for key meetings where the rezoning and development agreement were approved. They also argue the development agreement itself was unconstitutional due to insufficient public review time. Attorney Stephen Jeffery highlighted a perceived common "playbook" used by data center developers and criticized offensive remarks allegedly made by city officials towards project opponents. Festus City Attorney Brian Malone, however, maintains that the City followed all legal requirements for enacting regulations, annexing property, rezoning, and approving the development agreement, stating the City will file its response in court. CRG, a subsidiary of Clayco, plans to build the facility on over 360 acres, projecting $1.3 billion in revenue for the city, largely from utility taxes. Despite some modifications to the deal, such as extended buyout timelines for nearby homeowners and a cap on water usage, residents remain concerned about environmental impacts and job creation. The public opposition notably led to several city council members losing their seats in recent municipal elections.