HERMANTOWN, Minn. — Seating was in unusually short supply at the Hermantown City Hall on Monday night, as councilors took up a rezoning request that could open the door for the construction of a sprawling data center in the rural southwest corner of the Duluth-area community.
Council chambers were filled to capacity, and an engaged crowd exceeding 300 citizens spilled out into overflow spaces where members of the public were able to view a video feed of the meeting and step forward to address councilors in turn when it was their opportunity to speak.
The meeting began at 6:30 p.m. and wrapped up shortly before the clock struck midnight.
Both advocates and opponents of a proposed data center development shared their views before the council unanimously voted to support the requested zoning change of 220 acres from a classification of S-1 Suburban to Business/Light Manufacturing. Councilor John Geissler was not present due to a prior commitment.
Audience members responded to the council vote negatively, with many standing and shouting “Shame” following approval of the requested zoning change for the project, which is being pursued by a “Fortune 50” company that hasn’t been publicly identified.
Hermantown Community Development Director Eric Johnson recommended the new zoning,
“The purpose of this is to be able to create employment centers, a broader diversity of jobs, as well as to increase tax revenues associated with industrial types of uses,” he said.
But many neighbors questioned whether a data center was an appropriate fit for the area.
If it materializes, the proposed development would likely be built in three phases and could measure up to 1.8 million square feet when fully realized. That’s equivalent to the footprint of more than 31 football fields.
The data center development is expected to consume 30,000 to 50,000 gallons of water per day at maturation.
Hermantown’s economic development director, Chad Ronchetti, suggested the creation of more commercial development stands to benefit residential taxpayers. He noted that commercial property owners typically pay two to three times as much tax as homeowners do in relation to the value of a parcel and/or a particular building.
Ronchetti projected that the new development would inject $50 million to $100 million into the local economy, though as is common with data centers, it would create relatively few new jobs; the city put the number at up to 100.
Dan Lessor, vice president of real estate for Mortenson Co., the would-be developer of the project, defended data center projects as a worthy investment in the nation’s future.
“They’re critical pieces of our local and national infrastructure. That is a fact. Every time we pull out a phone, use our computers, shop online, talk to your kids on Zoom or whatever — all those things ping through a data center. And the more that we consume data, the higher the demand is for these structures across our country,” he said.
Hermantown City Administrator John Mulder suggested Monday’s rezoning vote should not be exaggerated in its importance or diminished in the opportunity for continued public input.
“This is just a step in the process,” he said. “There is much more to come.”
Nicholas Rinehart said he was drawn to Hermantown largely because of what the city markets itself to provide — namely, “country living with a small-town community feel.”
He said the scale of the proposed data center seems out of proportion for what is now a rural setting.
“I simply ask, before taking any action on this rezoning, take a step back and look at all these residents gathered around the room, and ask yourself: Is this the Hermantown we want to become?” Rinehart asked.
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