Pekin Data Center Project Terminated by Developer

The proposed data center project on Pekin's Lutticken Farms property will not proceed after developer Western Hospitality Partners (WHP) terminated its agreement with the city. Pekin City Attorney Jim Vasselli informed the City Council of the "clean break" after Mayor Mary Burress read a letter from WHP's attorneys, Patzik, Frank & Samonty, confirming their withdrawal. WHP was to purchase 321 acres for $4.5 million but opted out before its due diligence period ended, necessitating the city's return of $85,000 in earnest money. Mayor Burress had announced on March 9 that the city would not be moving forward, citing it as not the right fit for Pekin. Five of the seven council members, including Burress, publicly opposed the project, with council member Karen Hohimer joining the opposition after initially delaying her announcement due to legal concerns. Strong public opposition played a significant role, with the Tazewell County Data Center Opposition Facebook group amassing over 6,200 members. Residents voiced fears about noise pollution, environmental problems, increased energy costs, and water supply issues, as well as disputing the project's projected tax revenue and job creation. The city had purchased the 1,000-acre Lutticken Farms property for $14 million last year, and now seeks new developers, while facing the first payment due on a $12.5 million loan for the land.