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Ellendale mayor: data center brought growth, strain and "growing pains" to small town
Summary
Ellendale Mayor Don Flaherty told the Legislature's interim Energy Development and Transmission Committee that the Applied Digital data center has reversed decades of decline in his town but created housing, childcare and public-safety strains that city leaders are still managing.
Ellendale Mayor Don Flaherty told the North Dakota Legislative Management's Energy Development and Transmission Committee on the committee's Ellendale stop that the Applied Digital data center has sharply increased local valuation, activity and optimism but created "growing pains" the city is still addressing.
The mayor said the community of about 1,100 residents saw residential valuations jump because of the housing shortage and an influx of workers tied to construction and operations. "Either you are growing and thriving and becoming something new or you're dying," Flaherty said, summing why city leaders have welcomed the project despite its challenges.
The mayor framed the issue as one of rural survival and local stewardship. He told committee members he and the city council promised to be "prudent in our budgeting" after valuations rose and to avoid turning appraisal gains into excessive new tax levies. He said the city used county homestead credits and recent state changes to primary residence exemptions to mitigate tax impacts for many residents.
Flaherty described several specific impacts the town has seen: a short-term restaurant closure during construction followed by new food-service openings, strain on daycare capacity that the city says it has moved to address, an uptick in certain types of incidents that local police and the sheriff are monitoring, and persistent pressure on housing and school staffing. "We are going to continue to struggle for a few years," he said, adding that state help and local planning are part of the response.
He told legislators the council has tried to limit how much of the valuation rise translates into higher tax collections, and that county-level equalization work influences final tax bills. On questions about property-tax bills, he said many county residents receive homestead credits and that recent legislative changes to primary-residence rules should significantly reduce tax bills for many homeowners in Dickey County.
Flaherty invited legislators and committee members to continue partnering with the city on transportation, law-enforcement and other infrastructure needs, and offered contact information for follow-up.
Ellendale officials and local leaders told the committee they see long-term upside from the data center in jobs and housing investment, while also requesting help with short-term infrastructure and workforce pressures. Mayor Flaherty closed by stressing willingness to listen to critics and to adjust city practice where needed.
Less urgent local details: Flaherty said the town has regained restaurants and seen people renovate homes; he also serves as Dickey County director of tax equalization and said he monitors countywide assessment trends.
