Marshalltown City Council Sets Public Hearing for Data Center Moratorium
The Marshalltown City Council voted 5-2 to set a public hearing for a four-month moratorium on data center construction, scheduled for its next meeting on August 10. The decision followed extensive discussion and significant public opposition, despite arguments from some council members and economic development officials about potential revenue and job benefits. The moratorium aims to allow time for the Planning and Zoning committee to establish appropriate ordinances.
The Marshalltown City Council, following its third consecutive meeting discussing the issue, voted 5-2 to schedule a public hearing on a proposed four-month moratorium for data center construction. The hearing is set for the upcoming August 10 meeting, during which final action on the ordinance could also be taken if a three-fourths council vote suspends additional readings. The decision was made despite strong opposition from Councilors Jeff Schneider and Greg Nichols, who highlighted the substantial revenue and job creation potential of data center projects for the city, school district, county, and community colleges, arguing against the moratorium.
Public comments during the meeting largely favored the moratorium, citing concerns about water and electricity consumption, potential impacts on utility rates, environmental issues like air emissions and light pollution, and a lack of substantial permanent jobs. Residents like April Long and Zachary Hamilton expressed worries about the long-term effects on the community's resources and quality of life. Conversely, Marshalltown Area Chamber of Commerce President/CEO John Hall countered many criticisms, stating that much anti-data center sentiment is based on propaganda and emphasizing that the city controls tax rates for such developments. He also warned that delays could deter developers.
City Administrator Carol Webb clarified that while no formal data center development application is currently being processed, a moratorium enacted before August 18 would prevent any special use permits for data centers from being approved at the subsequent Board of Adjustment meeting. She also confirmed that city staff had signed non-disclosure agreements with a prospective developer, but stressed that such agreements cannot override Iowa's public records law.