I feel like neither the Sierra Club nor Data Center operators are presenting a balanced perspective based on their interests. But I do think the idea of a data center in Fredericksburg is worth entertaining.
Councilor Mackintosh has a good point that the economics could be favorable to the city, filling operating coffers and providing much-needed funding for things like education. I like that data centers compared to other development projects wouldn't require the same public burden for road and infrastructure improvements (outside of public utilities), police, fire, etc. that something like a shopping center would. The one watch-out is that local governments need to be careful about extending tax incentives that look great when the project is approved but never pay off.
I’ve heard Councilor Mackintosh's reference the Dillon Rule on multiple times now as a reason why City Council can’t act on different issues. I’m not sure it’s quite as limiting as he thinks. Local governments have some tools in their toolbelt that have been used successfully for decades to regulate while staying within the bounds of the rule. Here are a few examples:
Zoning Ordinances
Arlington County has detailed zoning ordinances that specify different zoning districts for various types of businesses. For example, certain areas are designated as commercial districts where retail stores and restaurants can operate, while others are designated for light industrial or office uses. This zoning helps ensure that business activities are compatible with surrounding land uses and community goals.
Loudoun County has specific zoning classifications for agricultural and rural business activities. This zoning helps protect agricultural land and ensures that businesses like wineries or equestrian facilities operate in areas suited to their activities, preventing conflicts with residential areas.
Alexandria, businesses in historic districts are subject to zoning regulations that preserve the architectural integrity of these areas. Businesses must adhere to specific design guidelines that align with the historical character of the district.
Business Licenses
Henrico County requires businesses operating short-term rental properties to obtain a special business license and pay a transient occupancy tax. This regulation ensures compliance with local regulations and generates revenue for the county.
Norfolk charges different license fees depending on the type of business, such as higher fees for businesses in sectors like professional services or retail. This helps the city manage the economic impact of different types of businesses and fund local services.
Conditional Use Permits
In Virginia Beach, certain types of businesses, such as bars or nightclubs, may require a conditional use permit to operate in particular zoning districts. The city reviews applications for these permits to ensure that proposed businesses meet specific conditions related to noise, traffic, and impact on surrounding areas.
Charlottesville may grant conditional use permits for urban farms within certain zoning districts. These permits allow urban agriculture to take place in areas where it might not otherwise be permitted, subject to conditions related to scale, impact on neighboring properties, and compliance with city regulations.
Virginia Beach issues conditional use permits for outdoor entertainment venues such as concert halls or sports arenas. These permits typically include conditions related to noise levels, event hours, and traffic management to mitigate any potential impact on surrounding neighborhoods.
A data center might be allowed to operate if it obtains a conditional use permit, which may come with specific conditions to mitigate negative impacts. Local governments might deny the permit or impose stringent conditions that make the project less feasible or appealing.
Utility and Infrastructure Limitations
Local governments can control access to necessary infrastructure such as water, electricity, and sewage systems. If a data center requires infrastructure upgrades that are deemed impractical or undesirable, the local government might deny or delay connections.
Data centers can be energy-intensive. Local governments might cite concerns about exceeding existing utility capacities or the need for significant infrastructure upgrades as reasons to prevent or delay construction.
Of course, they can’t go beyond the authority granted by the State Legislature but their hands are not tied.
I feel like neither the Sierra Club nor Data Center operators are presenting a balanced perspective based on their interests. But I do think the idea of a data center in Fredericksburg is worth entertaining.
Councilor Mackintosh has a good point that the economics could be favorable to the city, filling operating coffers and providing much-needed funding for things like education. I like that data centers compared to other development projects wouldn't require the same public burden for road and infrastructure improvements (outside of public utilities), police, fire, etc. that something like a shopping center would. The one watch-out is that local governments need to be careful about extending tax incentives that look great when the project is approved but never pay off.
I’ve heard Councilor Mackintosh's reference the Dillon Rule on multiple times now as a reason why City Council can’t act on different issues. I’m not sure it’s quite as limiting as he thinks. Local governments have some tools in their toolbelt that have been used successfully for decades to regulate while staying within the bounds of the rule. Here are a few examples:
Zoning Ordinances
Arlington County has detailed zoning ordinances that specify different zoning districts for various types of businesses. For example, certain areas are designated as commercial districts where retail stores and restaurants can operate, while others are designated for light industrial or office uses. This zoning helps ensure that business activities are compatible with surrounding land uses and community goals.
Loudoun County has specific zoning classifications for agricultural and rural business activities. This zoning helps protect agricultural land and ensures that businesses like wineries or equestrian facilities operate in areas suited to their activities, preventing conflicts with residential areas.
Alexandria, businesses in historic districts are subject to zoning regulations that preserve the architectural integrity of these areas. Businesses must adhere to specific design guidelines that align with the historical character of the district.
Business Licenses
Henrico County requires businesses operating short-term rental properties to obtain a special business license and pay a transient occupancy tax. This regulation ensures compliance with local regulations and generates revenue for the county.
Norfolk charges different license fees depending on the type of business, such as higher fees for businesses in sectors like professional services or retail. This helps the city manage the economic impact of different types of businesses and fund local services.
Conditional Use Permits
In Virginia Beach, certain types of businesses, such as bars or nightclubs, may require a conditional use permit to operate in particular zoning districts. The city reviews applications for these permits to ensure that proposed businesses meet specific conditions related to noise, traffic, and impact on surrounding areas.
Charlottesville may grant conditional use permits for urban farms within certain zoning districts. These permits allow urban agriculture to take place in areas where it might not otherwise be permitted, subject to conditions related to scale, impact on neighboring properties, and compliance with city regulations.
Virginia Beach issues conditional use permits for outdoor entertainment venues such as concert halls or sports arenas. These permits typically include conditions related to noise levels, event hours, and traffic management to mitigate any potential impact on surrounding neighborhoods.
A data center might be allowed to operate if it obtains a conditional use permit, which may come with specific conditions to mitigate negative impacts. Local governments might deny the permit or impose stringent conditions that make the project less feasible or appealing.
Utility and Infrastructure Limitations
Local governments can control access to necessary infrastructure such as water, electricity, and sewage systems. If a data center requires infrastructure upgrades that are deemed impractical or undesirable, the local government might deny or delay connections.
Data centers can be energy-intensive. Local governments might cite concerns about exceeding existing utility capacities or the need for significant infrastructure upgrades as reasons to prevent or delay construction.
Of course, they can’t go beyond the authority granted by the State Legislature but their hands are not tied.