Lex Developments files AI data center reconsideration request, accuses Pocatello of due process violations
Lex Developments LLC filed a formal request for reconsideration with the Pocatello City Council after its conditional use permit for an AI data center was denied. The company alleges due process violations during the council's hearing that upheld the denial. Lex Developments has also stated its intention to pursue legal action if the reconsideration is rejected.
Lex Developments LLC, led by Gus Schultz, has filed a formal request for reconsideration with the Pocatello City Council, challenging the council's 4-1 vote on July 16 to uphold the denial of a conditional use permit for a large-scale AI data center. The proposed data center was slated for the former Hoku polysilicon plant site at 1800 River Park Way, an industrial-zoned area.
The 14-page filing, submitted by attorney Jon Stenquist of Parsons Behle & Latimer, argues that the July 16 hearing was procedurally defective on five independent grounds, rendering the council's decision "arbitrary, capricious, procedurally defective and unsupported by the record." Stenquist stated the request was made "out of an abundance of caution" as the city had not yet issued a formal written statement of its oral decision.
If the City Council denies the reconsideration request, Stenquist has demanded specific justifications for each ground of appeal. Lex Developments has also explicitly stated its intention to "reserve all rights to seek judicial review," with Schultz having previously vowed that a lawsuit is "absolutely, 100 percent" coming. The City Council now has 60 days to issue a final written decision on the matter.