Festus Mayor Declines to Place Data Center Moratorium on Agenda Following Legal Opinion
Festus Mayor Sam Richards has decided against placing a proposed one-year data center moratorium on the city council's agenda, citing legal advice warning of potential breach of agreement with developer CRG. Despite this, council members who advocated for the moratorium intend to reintroduce the proposal for a vote. The $6 billion hyperscale data center project by CRG has faced significant public opposition.
Festus Mayor Sam Richards announced he would not place a proposed one-year moratorium on a data center development project on the city council agenda, following legal advice that warned of putting the city at risk from the developer. The legal opinion, provided by Matt Reh of Armstrong Teasdale, indicated that a moratorium could materially delay or impair the project, likely violating the city's agreement with CRG Acquisition.
The proposed moratorium targets a $6 billion hyperscale data center planned by CRG, the St. Louis-based data center development arm for Clayco, on 361 acres north of Hwy. 67 and west of Hwy. CC. A development agreement was approved in March 2025, but the project has since faced significant public outcry and opposition, leading to the election of new council members who are critics of the project.
Despite the mayor's decision, Councilmen Karl Weekley, Dan Moore, and Rick Belleville, who initially suggested the moratorium, stated their intention to bring the proposal up again. The legal advice, initially given in closed session, was voted by the council to be made public, detailing risks such as potential lawsuits for breach of agreement. The ongoing debate highlights deep divisions within the city government and the community regarding the data center development.