Cannon Falls council authorizes staff to draft zoning rules to allow data centers as conditional use

The City of Cannon Falls City Council on Tuesday authorized staff to draft a text amendment to the city zoning code to add data centers as a conditional use, a step staff said is needed to process a development application the city recently received.

Staff member John told the council the change is necessary "so that our city ordinance allows data centers" and to give the city a framework to review the current application submitted "from Trac through Kimley Horn." He said the amendment would both define data centers and establish the conditions under which the city would allow them in various zoning districts.

The action matters because, as John said, the city's existing code predated modern data centers and does not provide a clear permitting path. Councilmember Diane Johnson said she supported moving forward but suggested the city consider hiring a specialist—an attorney or land-use consultant with data-center experience—to help craft the ordinance and future PUD (planned unit development) work. "I have no problem with us doing this," Johnson said, "... I'm wondering if it might be wise for us ... to look at hiring somebody who specializes in data use land management."

John responded that staff is already using contracted consultants under existing escrow agreements to evaluate land-use proposals and infrastructure needs and that the city can explore additional services if needed. "We can absolutely explore additional services if they're needed," he said, noting that local partners and other recent projects in the state provide examples the city can consult.

Councilmember Jeff Jepsen moved to authorize staff to prepare the text amendment; the motion was seconded by Councilmember Lisa. The mayor called for the vote; council members voted "aye" and the motion carried.

The council's authorization directs staff to draft the ordinance language and proposed conditions; any draft would return to council for review, public hearing, and formal adoption steps required by the city's zoning and land‑use procedures. The text amendment itself does not approve any development proposal. The development application referenced by staff will be processed later under whatever permitting and PUD or conditional‑use procedures the council establishes.

City staff did not provide a timeline for returning a draft ordinance to the council during the meeting, and no specific consultant or contract was approved; Diane Johnson's recommendation to consider outside specialist assistance will be available for council discussion if staff pursues it.