Leesburg council denies Oak Lawn rezoning for data center and linked affordable housing plan after weeks of public comment

The Leesburg Town Council on Jan. 28 denied rezoning application TLREZN2023-0001, a proposal to revise the Oak Lawn concept plan to allow up to 450,000 square feet of data center space on Land Bay A, add a 3.7-acre public-park dedication on Land Bay A and a roughly 5.2-acre park on Land Bay C, and to develop up to 184 affordable multifamily dwellings on Land Bay MUC 2.

Town planning staff presented the application and recommended denial, saying the proposed data center uses would be incompatible with surrounding residential, school and park uses and with the town plan’s vision for a walkable, mixed-use center. Staff and the Planning Commission raised concerns about building scale, 24-hour operations, mechanical noise, security fencing and uncertainty over future electric infrastructure. The application originally proposed 700,000 square feet of data center space in three buildings and an on-site electrical substation; the applicant reduced the proposal during review to 450,000 square feet in two buildings, removed the substation from the concept and added park dedications.

Planning staff detailed several areas of concern: the land-use plan for Oak Lawn designates the property as an area to “transform or evolve” into a mixed-use innovation center with office, retail, community facilities and high-density residential; data centers, staff said, tend to isolate themselves—providing limited employment and restricted access—and can be incompatible with the neighborhood character envisioned for Oak Lawn. Staff identified specific zoning modification requests in the application (buffer-yard calculations, lighting and open-space timing) and recommended denying two of three requested modifications after finding the proposed public-park dedications were not reasonably proximate to the residences that would generate the need for open space and came without park programming or construction commitments.

Staff also summarized fiscal and service impacts: their in‑house fiscal model estimated a net fiscal impact of about $3,800,000 per year for the proposed 450,000 square feet of data center use at full build-out, and estimated $17,330 per year for the proposed multifamily residential build-out on MUC 2. Loudoun County Public Schools provided an estimate that 184 multifamily units would generate about 70 school-age children and that the county’s capital and operating impacts would be substantial—roughly $5.3 million in capital and $1.3 million annually—although staff noted units that qualify as affordable dwellings are exempt from capital facilities cost contributions under applicable regulations.

Applicant presentations focused on changes they said addressed concerns. Molly Novotny, the applicant’s planner, said the project meets or exceeds Leesburg’s newly adopted data center ordinance: the applicant reduced data center square footage, removed the substation from the proposal, increased the setback to the Stratford Club to about 400 feet (500 feet to the closest building), proffered 15-foot berms and perimeter landscaping, committed to Tier 4 generators and limited generator testing hours, and pledged to hold noise to no more than 50 dB at the northern property line adjacent to residents. The applicant also proffered park land dedications and said the proposed data center would use less water than the site’s by-right development program (roughly 9.2 million gallons per year proposed versus about 16 million gallons for the by-right program) and would accelerate construction of the missing segment of Hope Parkway.

Kim Hart of GoodWorks, the affordable housing partner on the application, spoke in favor of the affordable units and urged the council to weigh the housing benefits. Hart said the 184 rental units would serve households at about 60 percent of area median income and that the project would deliver units that are otherwise difficult to build under current market and policy conditions.

Opponents—mostly residents of Stratford Club and nearby neighborhoods—testified at length. Speakers cited concerns about noise from mechanical equipment and generator testing, potential future placement of an electrical substation, loss of walkable, community-serving commercial uses, impacts to property values and quality of life, uncertainty in long-term water and power supply, and broader worries about siting industrial uses adjacent to housing. Bill Yoder, an acoustical consultant for the applicant, said ambient daytime noise on the east side of the site ranges from about 50–55 dBA (and can reach 60 dBA with traffic), and that night-time arithmetic means are about 50 dBA; he described how equipment selection, fan sizing and enclosure design could reduce data-center-generated noise.

During council discussion several members said they appreciated the applicant’s revisions and the promise of affordable housing but agreed with staff and the Planning Commission that the proposal did not achieve compatibility with the surrounding neighborhood or the town plan’s mixed‑use vision for Oak Lawn. Council members and town staff debated whether proffers prohibiting a substation provided adequate protection, noting the State Corporation Commission can require utility siting decisions that can override local zoning; staff suggested additional proffers or deed restrictions as potential — but not certain — mitigations.

After public comment and deliberation, a motion to deny the rezoning application was offered, read into the record with findings that the proposal conflicted with the town plan, failed to fully mitigate adverse impacts and did not meet zoning approval criteria. The council voted to deny TLREZN2023-0001; the motion included detailed findings on incompatibility, impacts on local residents and open-space proximity.

The denial leaves the property at Oak Lawn with its existing zoning entitlements; applicant and staff may pursue other approaches or amendments in the future, but any revised proposal would need to address the council’s compatibility concerns identified in tonight’s vote.