Cave City moves to toss lawsuit over data center moratorium
Cave City is seeking to dismiss a lawsuit filed by Kentucky Industrial Alliance LLC over a one-year moratorium on data center applications. The city argues the company never submitted a valid development plan, thus lacking standing to challenge the ordinance. Kentucky Industrial Alliance claims the moratorium unlawfully halted its project after significant investment.
Cave City is seeking to dismiss a lawsuit brought by Kentucky Industrial Alliance LLC, which alleges that the city unlawfully imposed a one-year moratorium on data center applications. The lawsuit, filed on June 8 in Barren County Circuit Court, claims the moratorium illegally halted Kentucky Industrial Alliance's proposed data center project after the company had invested millions in land acquisition and preparation.
Attorneys for Cave City, the Cave City Council, and the Joint City-County Planning Commission filed motions on June 29 and July 1, arguing that Kentucky Industrial Alliance never submitted a valid development plan and therefore lacks a legally recognizable injury to challenge the ordinance. The city contends that only a two-page application form was submitted without required engineering drawings or supporting materials.
A hearing is scheduled for July 20 on Kentucky Industrial Alliance's request for a preliminary injunction to temporarily block the moratorium's enforcement. The Joint City-County Planning Commission has stated it will not take further action on the application until the litigation is resolved. Additionally, a separate lawsuit filed June 30 challenges Cave City's annexation of 245 acres relevant to the proposed data center development.