Box Elder County Attorney rejects referendums challenging Stratos Data Center
The Box Elder County Attorney has rejected referendum applications aimed at overturning the Stratos data center project, ruling them administrative rather than legislative acts. This legal decision allows the project to move forward, despite potential appeals from referendum sponsors. The County Auditor also released a fiscal impact statement, highlighting significant revenue loss if the project is repealed and increased costs for county services if the project proceeds without current resolutions.
Box Elder County Attorney Stephen R. Hadfield announced Thursday the formal rejection of three referendum applications seeking to challenge resolutions that paved the way for the massive Stratos data center project. Hadfield determined that the measures are not legally referable to the ballot under Utah's Election Code, which limits referendums to legislative actions that create broadly applicable new laws. He ruled that the Box Elder County Commission's votes, which cemented an agreement with the Military Installation Development Authority (MIDA), were administrative acts implementing existing state statutes.
Hadfield stated he is legally bound to reject the applications and noted that sponsors can appeal his decision in state courts. This legal rejection coincided with a fiscal impact statement from County Auditor Shirlene Larsen, who estimated that repealing the resolutions would cost Box Elder County $5.4 million in guaranteed annual revenue, potentially escalating to $108 million annually once the data center reaches full capacity. Larsen also projected an additional $5.4 million per year in increased costs for fire, ambulance, and police services if the project proceeds without the county's current resolutions.
Sponsors of the referendum now face a limited timeframe to appeal the county attorney's decision to a district court or the Utah Supreme Court. County officials have declined further interviews, citing potential upcoming litigation.