Hermantown council adopts AUAR for proposed data center amid heavy public opposition

The Hermantown City Council on Sept. 30 adopted the final Alternative Urban Areawide Review (AUAR) and mitigation plan for a proposed data center campus in the city’s southwest quadrant, following an extended staff presentation and more than three hours of public comment both opposing and supporting the project.

City staff described the AUAR process and details of the proposal before the council. Eric Johnson, Hermantown’s community development director, told the council the AUAR process included a scoping document (published May 6), a draft AUAR (published Aug. 5) and a final AUAR (published Sept. 16) and that staff received hundreds of public comments between Sept. 24 and Sept. 30 focused on water, groundwater, watershed impacts, energy usage and potential costs to residents. "The final AUAR reflects agency and public comments and includes a mitigation plan that assigns responsibility for specific measures," Johnson said.

Chad Ranchetti, Hermantown’s economic development director, outlined project specifics staff is using to evaluate potential impacts. Ranchetti said the rezoning request covers roughly 220 acres and that the landowner/developer has been working with Mortonson Development representing a confidential, large corporate client. He said facilities on the proposed campus would not use groundwater or water-based cooling and that, at full buildout with four buildings, water demand would be a maximum of about 50,000 gallons per day supplied from municipal water and sewer. He also estimated utility extension costs at roughly $50 million to $100 million to be funded by the developer and conveyed to the city when completed.

Residents and organizations filled the council chambers to give testimony in two segments — first on the rezoning and later on the AUAR itself. Opponents repeatedly asked why an AUAR was used instead of a full Environmental Impact Statement and pressed for more disclosure about the unnamed corporate client, potential off-ramps if project elements change, and detailed plans for noise, lighting, stormwater and chemical management. "I don't have faith in these nondisclosure practices — we deserve to know who wants to invest in our community," said Joanne Bates, a resident. Multiple speakers argued that the AUAR process and the timing of public notice left many nearby residents without adequate time to review documents and respond.

Supporters framed the proposal as a major economic opportunity. Mickey Pearson, a business recruiter for Area Partnership for Economic Expansion (Apex), and Rachel Johnson of Apex both urged council members to approve the AUAR and keep the process moving, saying the region’s cooler climate and regulated power grid make it suitable for modern air-cooled data centers. Local business leaders and construction trades representatives said the project could supply hundreds of construction jobs and dozens of long-term technical roles. "Data centers are essential digital infrastructure and a catalyst for economic diversification," said Rachel Johnson.

Council discussion emphasized process. Staff repeatedly told the council and members of the public that adopting the AUAR establishes an environmental-review framework but is not an approval of rezoning or the data center itself. Mr. Moulder, a city official who presented earlier background, said site-specific issues such as landscaping buffers, lighting, grading, stormwater plans and wetland permits would be considered in future planning and permitting reviews. "Adopting the AUAR does not approve a project; it provides the parameters for environmental review and mitigation so future applications can be evaluated consistently," he said.

Vote and next steps The council adopted Resolution 2025-147, the final AUAR and mitigation plan, by unanimous roll call. Acting Mayor Gryler and councilors present recorded affirmative votes. The rezoning ordinance (Ordinance 2025-17) remains at first reading; councilors noted a second reading and any formal rezoning action will be scheduled for a future meeting (the staff presentation noted Oct. 20 as the target for second reading). Future steps include plan- and site-specific zoning reviews, public hearings before the Planning & Zoning Commission and additional permitting from state agencies where applicable.

The council’s acceptance of the AUAR does not remove future opportunities for public review. Staff indicated state agencies including the Minnesota Pollution Control Agency and Minnesota Department of Natural Resources have been involved in the AUAR review and that wetlands, stormwater and other impacts will be addressed in subsequent permit reviews.

Votes at a glance - Consent agenda (Sept. 15 minutes; warrants Sept. 16–30, 2025, $879,380.28): approved (motion by Councelor Jelly). - Resolution 2025-147 (adopt final AUAR and mitigation plan): approved, unanimous roll call. - Ordinance 2025-17 (first reading — zoning map amendment): no action (first reading only; second reading scheduled later).

What's next If the council or a future applicant moves forward with a specific development proposal, that application will return to Planning & Zoning and the city council for site- and project-level review, including advertised public hearings and permit-by-permit scrutiny of mitigation measures (stormwater, wetlands, landscaping and noise). Staff recommended that residents continue to submit technical comments to the city and to state agencies during the permitting process so specific impacts can be addressed in detail.

(Reporting note: quotations and attributions are taken from the public record at the Sept. 30 Hermantown City Council meeting.)