Port Washington council holds first readings on annexation and rezoning for proposed Red Granite data center campus

The City of Port Washington Common Council on Tuesday held first readings of three connected ordinances to accommodate a proposed data center campus by Red Granite Development Corporation LLC, including a petition to annex 562.385 acres from the Town of Port Washington, an amendment to the city's Comprehensive Plan 2035, and a rezoning request affecting about 489.54 acres.

The measures would bring land generally south of Lake Drive, bounded by Highland Drive, Interstate 43 and the Ozaukee Interurban Trail, into the city, add roughly 1,910 acres to the city's future land use map with a business park/industrial designation, and rezone about 490 acres to an I‑3 Technology Campus district. All three items were presented as first readings; no action was taken. Public hearings and second readings are scheduled for the May 20 meeting.

"So as noted, this is the first of three, connected more or less, ordinances related to the Red Granite, Cloverleaf data center project," Bob Harris, a city staff member, told the council as he introduced the annexation ordinance and maps. Harris said the annexation map includes a portion of the I‑43 right of way to provide contiguity with the city boundary.

The planning commission recommended the measures for first reading, Harris said. Alderman Michael Benning asked about the ordinance's language on annual payments to the town; staff said those payments would be governed by a later development agreement. "It is different from that standard five years if we get to when we get to the development agreement," Alyssa, a staff member, said. Council members were told the development agreement would supersede the standard schedule described in the ordinance.

Alderman Tierney asked whether the annexation would be undone if the development did not proceed. "My understanding is that if this would not . . . come to fruition, then we would undo the annexation piece," a staff member responded.

During the meeting's public comment period, resident Rick Fallon, who said he lives at 4237 Highland Drive in the Town of Port Washington, asked who would maintain roads if the town parcels are annexed: "In a couple weeks, you're gonna be annexing 562 acres . . . So if it's a city road, how is maintenance gonna be handled?" Mayor Ted Neitzke said staff would follow up and that the city would add the question to a public FAQ on the city website: "What we'll do is we'll work with you on that, but then I'd also ask that we'll drop that into our frequently asked questions through our website, and we'll get that answer." The council did not provide a timetable for that FAQ during the meeting beyond the staff'estimated project timeline.

Council members asked staff for a clearer project timeline. A staff member said the city expected a clearer picture of the project's advancement by June and described the current ordinance steps as "proactive opportunities" to make the site "site ready" for the developer and eventual end user.

The ordinances presented are framed as preliminary steps: annexation, comprehensive plan amendment and rezoning. Each will return to the council for public hearing and a second reading on May 20. The council emphasized that the annexation and rezoning are contingent on subsequent development agreements and approvals.