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Lebanon council adopts ordinance defining 'data center' as conditional use after developer protests
Summary
The Lebanon City Council on July 1 approved an ordinance to add a definition for “data center” to city code and to make data centers a conditional use in the Light Industrial district, a change councilors said will affect multiple properties including 946 Sullivan Bend Road.
The Lebanon City Council on July 1 approved an ordinance to add a definition for “data center” to city code and to make data centers a conditional use in the Light Industrial district, a change councilors said will affect multiple properties including 946 Sullivan Bend Road.
Developers and the property owner asked the council to defer the change before the vote. John Mark Tarver of Tarver Properties said his team and property owner Ron Buck had worked since January to market the Sullivan Bend site after receiving a written letter from city planning that the use was allowed. Tarver told the council the project would “generate a tremendous amount of tax revenue,” and said, “we have estimated that conservatively, this project could generate $3,000,000 per year and likely more in property taxes just for the city of Lebanon alone.”
Tarver said the site is among the city’s few suitable locations for a data center and argued the project could support police pay raises, fire stations, schools and infrastructure without adding major traffic or strain on city services.
Ron Buck, who said he purchased 946 Sullivan Bend Road in 2020, told the council the planned change would “deal a death blow” to the marketability of his property and requested the council defer the ordinance so he and developers could explore options. Buck said he and the buyers had relied on prior guidance from planning while working through due diligence.
Council discussion noted competing concerns. Councilor Carmack urged the council to consider deferral, saying a written planning letter had shaped the developers’ expectations. Councilor Crowell and other members said the issue raises citywide policy questions about where data centers should be allowed and noted applicants had offered to pursue a specific plan (SP) if required. Councilors also said a citywide ordinance would give the council clearer tools to manage future proposals.
The ordinance was placed for a second reading and a motion to adopt passed on a voice vote; those present responded “Aye” and no member called opposition. The ordinance will change the official zoning atlas and the city’s code definitions for data centers. The council did not set a timetable for any permit or SP applications related to the Sullivan Bend site.
Background and context: city documents and speakers referenced the city’s future land use plan and estimated infrastructure costs for corridor improvements; Tarver said the corridor’s road build-out could cost about $100,000,000. The council said an SP remained an option for applicants even after a code change.
No formal legal challenge, permits, contract awards or development approvals for the Sullivan Bend site were taken at the July 1 meeting; the action at the meeting changed zoning definitions and conditional-use status only.
