Kentucky land development company sues Cave City over data center moratorium
Kentucky Industrial Alliance (KIA) is suing Cave City, Kentucky, after the city council enacted a moratorium on data center development. KIA claims the moratorium was rushed and violates state law, impeding its plan to sell land for a data center project. The moratorium was passed following public outcry over environmental and community impacts near Mammoth Cave National Park.
Kentucky Industrial Alliance, LLC (KIA), a land development company, has filed a lawsuit against the City of Cave City, Kentucky, its Joint City-County Planning Commission, and the City Council of Cave City. The lawsuit, filed on June 8, argues that the city's recent moratorium on data center development, passed on May 11 and finalized on May 20 with a 4-1 vote, is unlawful and invalid under KRS 100. KIA claims the city council rushed the temporary ban, which prevented the company from proceeding with plans to sell 2001 Doyle Avenue for a data center project, for which development plans had already been submitted.
The moratorium followed weeks of significant public opposition, with residents expressing concerns about potential environmental impacts, effects on tourism, utility requirements, and changes to community character, particularly given the site's proximity to Mammoth Cave National Park. KIA is seeking a court hearing to declare the moratorium unlawful and, alternatively, to require the Joint Commission to review their development plan under pre-moratorium ordinances. WLKY has reached out to Cave City Mayor Dwayne Hatcher and the city for comment.