Festus approved data center despite community opposition

The Festus City Council in Missouri voted 6-2 to approve an ordinance that advances a proposed data center project by CRG, the real estate development and investment arm of Clayco, despite overwhelming public opposition. The vote followed a two-hour public comment period dominated by residents expressing their concerns in a packed high school gymnasium. Chris McKee, President of CRG, and Bob Clark, Founder of Clayco/CRG, emphasized the long-term economic benefits, job creation, and community investment the data center would bring to Festus and Jefferson County. However, residents like Zach and Chris G. highlighted the significant local opposition and accused CRG of using loopholes and holding secret meetings to circumvent democratic processes, alleging potential violations of Sunshine laws. Resident Sherman Doyle reported that his Sunshine request for records related to a March 9 meeting was denied, citing confidential communications. The council received updated financial impact statements, including a model by city consultant Steve Etcher, projecting a $6 billion investment in the first phase and an estimated $8 million annually in utility tax revenue for Festus, rising to $22 million by 2031. Over the course of the agreement, Etcher estimated $1.3 billion in revenue, along with 150 jobs. Despite these projections, residents like Alyssa Paris and Rick voiced concerns about a 100% property tax abatement for CRG for five years, the lack of guaranteed local union jobs, and no mention of Ameren electric grid build-out costs being covered by the data center. Many residents, including Lauren Albers and Erica Carter, expressed their disappointment with the council's decision and continued to push for opposition, with a mayor recall petition also mentioned. The project includes a voluntary residential buyout program for nearby homes. The next critical step involves the Jefferson County Port Authority's decision on a personal property tax abatement for the developer.