Cheers rang out from Breck Auditorium late Wednesday night.
After nearly 5 hours of board questioning and public comment, the Shelbyville Plan Commission voted unanimously to issue an unfavorable recommendation on the proposed General Industrial zoning request associated with the annexation of 429 acres for a data center.
The petitioner, LORM LLC and Alisha Clay, represented at the meeting by Stephenson Rife Attorney Eric Glasco, submitted a petition to the city to have 13 parcels of land on E. State Road 44 voluntarily annexed into the city. As part of that request, the petitioner requested the parcels be zoned IG General Industrial.
Glasco said during Monday’s City Council meeting, where the first reading of the annexation ordinance passed 5-1-1, that there is a purchase agreement in place between the petitioners and real estate company Prologis that is dependent upon the annexation and zoning request. Prologis representatives gave presentations at both Monday’s meeting and Wednesday’s meeting on the potential data center they would build if they acquire the land.
The Plan Commission spent a good hour practically interrogating both Glasco and Prologis representatives about both the annexation request and the data center proposal.
Plan Commission member Duane Schuler asked a multitude of questions about the closed-loop water system the projected buildings would have, including the capacity of those systems and potential water loss, which Prologis representatives could not answer because they are not yet in the process of putting together a detailed site plan.
“I work for a company that has a closed loop system and there are losses,” he said. “If you can’t tell me what the capacity of the system is, you probably can’t tell me what the monthly loss and replenishment is going to be.”
Plan Commission member James Garrett pointed out that these are prospective buildings that Prologis will rent out to clientele, so he asked if they would be pursuing existing customers or new ones. Prologis reps said what makes this site interesting is that it could service both Cloud and/or AI, and it’s likely they would ask their existing customers if they’re interested.
Plan Commission member Joe Lux confirmed that the site map Prologis has circulated that shows 13 buildings and multiple retention/detention ponds also shows three substations. Prologis has been working with and would be supplied power by RushShelby Energy, a member of the Hoosier Energy Cooperative.
Commission member Winnie Soviar – the county’s appointment to the city’s Plan Commission – asked multiple questions about oversight. Prologis reps said they comply with all local rules and regulations.
Plan Director Adam Rude reiterated the city has the ability to issue stipulations with regards to zoning and site plans, and legal means to issue fines in the event that the petitioners do not follow the local ordinances or imposed stipulations.
“From an enforcement standpoint, any conditions the Plan Commission or [Board of Zoning Appeals] imposes on an approval,” Rude said. “If this were to go through and the zoning classification were to happen, the City Council has the ability to attach written commitments that can be recorded against the property. Ten to fifteen to fifty years down the road, commitments can still be enforced.”
What followed was nearly 4 hours of public comment.
Plan Department staff had individuals sign up to speak so they could keep better track of who was speaking and have a general idea of how long the meeting could take. More than 60 people signed up to speak. Of those individuals, only two spoke in favor of the project.
Diana Lemmons reiterated the point her family made at Monday’s meeting that if that acreage is developed, her family’s property would be affected by the drainage. They adjoin the property.
“This is going to completely change the landscape of the area here,” she said. “This is a quiet, peaceful, beautiful community and we love it and want to keep it this way. This is my friends, my family, and my neighbors – it feels like we are fighting Goliath, but many of us can’t pick up the stones because we can’t vote for city officials as county residents.”
A majority of the individuals who spoke against the project asked the Plan Commission to deny the request entirely, which the commission did not have the authority to do, or to recommend the commission maintain the land’s current zoning. The land is currently zoned agricultural and residential by the county.
Connie Lindsay submitted a petition with more than 5,000 signatures against the project.
“I ask if you annex this you please annex this as ag and then the future businesses who want to approach this ground, that they come to you for rezoning at that point with what they want to do,” she said.
Kevin Carson, who serves on the County Plan Commission, told a story about how they zoned a parcel in Pleasant View as commercial for a proposal by Harley Davidson, but then that company didn’t come and the zoning didn’t have any conditions on it.
“If you do go through and rezone, think about putting conditions and stipulations and make sure they stay totally with the scope of the plan being brought before you,” he said.
Public comment went so long that the Plan Commission opted for a break at 10 p.m. Discussion was held about recessing the meeting and continuing to next week, but commission member Scarlett Tinsley-Price spoke strongly to ensure those who were in attendance Wednesday were heard on Wednesday.
“I don’t think the point is that we understand what they are for or against, I think the point is they want their voice to be heard,” she said to applause.
The final decision was made at 11:46 p.m.
Rude explained the Plan Commission’s options to vote for the evening were to issue a favorable recommendation on the IG zoning, an unfavorable recommendation, or no recommendation (which he explained is what happens when the board can’t agree on a recommendation to make).
All 11 Plan Commission members voted for an unfavorable recommendation, with several speaking out publicly against the data center.
Commission member Gary Nolley said he was against the industrial zoning specifically because of where it’s located. That land off Interstate 74’s exit 116 is ideal for commercial use, he said.
“Is this location situated on a key gateway to our city best suited for industrial development, or would another use better serve Shelbyville’s future?” he asked. “With growth comes increased demand for retail, restaurants, office space, hotels, and other commercial uses. These businesses require strategic locations to succeed. If this land, approximately 500 acres, is committed to industrial use, where will these other businesses locate?”
He added exit 113 has no available room for those businesses, and exit 109 can offer some accommodations but they’re away from the city’s general population.
With that recommendation, the petition now goes back to the City Council at its Jan. 21 meeting for a second reading. The Plan Commission decision has heavy influence on what the council can decide, but ultimately the decision of approving or denying the petition – the annexation with the IG zoning – is up to the council.
Betsy Means-Davis, who is the City Council representative serving on the Plan Commission, said the City Council was overwhelmed on Monday by the number of people who showed up to speak on the petition and said she would request that Jan. 21 meeting also be held at Breck Auditorium. The meeting is set for 6 p.m.
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