City delays decision on data center option
The Lincolnton City Council voted 3-1 to postpone by one month a decision on a proposed one-year moratorium on data center applications. The delay is intended to allow the city to hire a consultant to better understand data center impacts and options. A representative for Heathcote Capital LLC, which proposes a $600 million data center project in Lincolnton, spoke against the moratorium.
The Lincolnton City Council voted 3-1 at its August 6 meeting to delay a decision on a proposed one-year moratorium on data center applications, opting to revisit the issue in September. The planning department had recommended the moratorium to allow the city time to analyze the "development, infrastructure, and environmental impacts" of data centers and to formulate necessary regulatory and policy changes, as the current United Development Ordinance (UDO) lacks specific definitions for data centers.
Mayor Ed Hatley, though without voting power except in a tie, advocated for hiring a consulting firm to educate the council on data center implications, suggesting a shorter study period than a full year. Council members Kevin Demeny, Mark Johnson, and Jill Tipton voted for the delay, with Roby Jetton casting the sole 'no' vote. City Manager Ritchie Haynes highlighted the potential significant tax revenue from data centers, noting that two such facilities could equal the entire tax value of Lincolnton.
During the public hearing, Mark Frederick, a land use attorney with Parker Poe Adams & Bernstein LLP, spoke on behalf of his client, Heathcote Capital LLC. Heathcote Capital is proposing a $600 million data center project at 232 Car Farm Road in Lincolnton, which Frederick stated would generate $2.2 million in annual tax revenue for the city, comparable to its recent budget gap. He urged the Council to reject the moratorium to allow the project to move forward.