Marshalltown city council passes first reading of data center moratorium
The Marshalltown City Council approved the first reading of a four-month data center moratorium amidst public debate. However, the motion to waive subsequent readings and enact the ordinance immediately failed due to a lack of a supermajority, requiring further legislative steps before the moratorium becomes legally enforceable. This delay potentially leaves a window for developers to submit applications under existing regulations.
The Marshalltown City Council voted 6-1 to approve the first reading of a four-month moratorium on data center projects, following a public hearing. Despite the approval of the first reading, a subsequent motion to waive the second and third readings and immediately enact the ordinance failed, as three councilors voted against the waiver, preventing the required three-fourths supermajority.
City staff clarified that while the moratorium would apply to new construction and substantial expansions, it would not prevent staff from engaging with prospective developers, nor would it affect related approvals like annexation. The moratorium is currently set to expire on November 23, with a possibility of a 60-day extension by resolution. Public commenters, including Daleen Michel, Zach Hamilton, and Layne Pieri, largely endorsed the moratorium, emphasizing the need for clear regulations before project applications proceed. Pieri highlighted a petition with nearly 400 signatures from residents supporting the pause to allow time for establishing rules. Marshalltown Area Chamber of Commerce President/CEO John Hall stated that a short-term moratorium would not hinder current economic development prospects and addressed misconceptions about data center site listings.
During council deliberations, Councilor Greg Nichols expressed regret in his vote for the first reading, while Councilor Jeff Schneider was the lone dissenter. The debate intensified when Councilor Gary Thompson voted against waiving subsequent readings, arguing that citizens deserved additional opportunities for public input in future meetings. Mayor Mike Ladehoff warned that this delay could leave an opening for data center applications under current ordinances, which rely on recommendations from the Planning and Zoning Commission and final decisions from the Board of Adjustment (BOA). The council will hold additional readings at its August 24 and September 14 meetings.