Battle over Pekin data center may end up in court

Pekin city officials are preparing for a potential lawsuit from developer Western Hospitality Partners (WHP) after the city decided to halt a proposed data center project. The dispute centers on a contract with WHP to purchase part of the Lutticken Property for the data center, which Mayor Mary Burress announced on March 9 would not move forward. The Mayor's decision came after residents voiced significant concerns regarding environmental impacts, noise pollution, strains on the local electric grid, and rising energy costs. Residents had packed council chambers, cheering the announcement that the data center project was deemed "not the right fit for Pekin" at this time. City Attorney James Vasselli briefed the council publicly on the legal implications, noting that the contract with WHP did not guarantee favorable outcomes on council votes for rezoning, site plans, or redevelopment agreements. Vasselli clarified that while the city itself is shielded from punitive damages in a breach of contract suit, individual council members could face lawsuits. He explained that WHP would need to prove city officials acted in bad faith, deliberately causing harm or disregarding the developer's rights, for a lawsuit to succeed.