Festus, developer reach tentative data center agreement

Festus city leaders and developer CRG have forged a tentative agreement for a substantial data center project, representing a projected $6 billion initial investment. Mayor Sam Richards announced the framework of the development agreement, touting an estimated $1.3 billion in property and utility taxes and community benefit payments over 25 years, alongside an annual benefit of over $53 million and a $45 million community benefit fund over 10 years, including up to $5 million for a new city firehouse. The agreement stipulates that CRG will not seek real property tax abatement and will face no cap on city utility taxes. In return, the city will support CRG's application for partial personal property tax abatement through the Jefferson County Port Authority. Additionally, CRG will administer a voluntary buyout program for 12 homes identified within 1,000 feet of the proposed project site on Glenkee Court and nearby. Key stipulations in the agreement cover environmental compliance, developer responsibility for all energy usage and expanded energy infrastructure with Ameren, and full payment for all water and sewer improvements. CRG commits to purchasing water exclusively from the city, avoiding private wells, and meeting all sewage discharge requirements while utilizing advanced cooling technologies to prevent adverse impacts on the city's water supply. The developer will also fund necessary street and traffic improvements and maintain a tree buffer along the ridge near Glenkee/Ashford Place. The project will primarily access via Hwy. 67, with Hwy. CC as a secondary route. The proposed data center, planned for property north of Hwy. 67 and west of Hwy. CC, has generated significant public opposition since its announcement by CRG President Chris McKee, who stated that CRG (the data center development arm of Clayco) would develop the site before an operator takes over. Clayco previously withdrew a data center plan in St. Charles due to public outcry. Anticipating a large crowd and public input, the Festus City Council's March 23 work session and meeting, where the agreement terms will be presented and discussed, has been moved to the Festus High School gymnasium. A special meeting is scheduled for March 30 for the City Council to consider formal approval.