Hermantown residents press council over proposed data center as council approves routine licenses, ADU ordinance and permits

Dozens of residents who spoke during public comment urged the Hermantown City Council to halt or slow a proposed large data center project, while the council approved several routine licenses, resolutions and a second reading of an ordinance to permit accessory dwelling units.

The most sustained public remarks came from three residents who said the project — referred to by speakers as Project LON — had progressed with insufficient disclosure. ‘‘This data center is about fixing what this city council cannot provide,’’ said resident Derek Strumm, who alleged mismanagement of city funds and said he had been unable to obtain records he requested under the Minnesota Government Data Practices Act. Strumm also asserted that Hermantown’s tax burden is high compared with state and national averages and warned residents that the city was treating them like a ‘‘piggy bank.’’

Another speaker, Sarah Lopal of 5502 Hermantown Road, said residents had repeatedly asked for more information, complained about nondisclosure agreements and what she described as an inadequate administrative use review. ‘‘We have found other communities facing this exact issue … all fighting their elected officials to make a stand against these data centers,’’ Lopal said, urging the council to stop the project.

A third commenter, Jeffrey Donahghue, raised technical and environmental concerns, saying large AI-era data centers require substantial continuous power and water cooling and that the community lacked a full environmental review. ‘‘We are lacking a proper environmental study and EIS. Without that, we’re blind,’’ Donahghue said, describing noise and generator concerns and saying wetlands and water use were among unresolved issues.

City staff did not take action on the data center during the meeting. Council members did not announce new study deadlines or staff assignments on the record; later in the agenda the council moved forward on several unrelated agenda items and routine approvals.

Votes, ordinances and permits

During the meeting the council approved a series of motions by roll call. Councilor Gisler moved and Councilor Jelly seconded approval of a tobacco license for Holiday Station Store at 4795 Miller Trunk Highway for the 2026 license year, contingent on complete application materials, successful background checks and payment of fees; the roll call showed all members voting yes.

On the consent agenda the council approved minutes, accounts payable for the period listed in the packet, designations of the city’s official newspaper, appointments of depositories and representatives to regional bodies, and a set of board and commission appointments. The packet included a resolution designating Councilor Gistler as acting mayor and a resolution authorizing signatures by Mayor Wayne Buchet and City Administrator John Moulder.

On land-use and regulatory matters, the council approved the second reading of Ordinance 2025-23 to add accessory dwelling units (ADUs) to Chapter 18 of the Hermantown zoning code. City staff summarized key provisions: ADUs would be limited to single-family lots, have a minimum size of 350 sq ft and maximum of 1,000 sq ft, require owner-occupancy on the property, and require one additional parking space; applications would be administratively reviewed.

Council also approved Resolution 2026-04 granting a special use permit for indoor cannabis cultivation at 4599 Abrahamson Road for a proposed 2,700-square-foot building; staff said wetlands on the larger parcel had been delineated and that the applicant must comply with state licensing through the Office of Cannabis Management. Resident Sarah Lopal, who spoke earlier on the data center, also commented in favor of the cannabis proposal after discussing the applicant’s security and operations.

Infrastructure and procurement items approved included: Resolution 2026-05 (change order No. 2) adding roughly $6,000 for culvert work, trail fixes and permit fees on the Keen/King Creek Trail Segment 4 construction; Resolution 2026-06 (pay request No. 3) for contractor payment on the same trail segment; Resolution 2026-07 to update the city’s construction specifications to align with MnDOT updates; and Resolution 2026-08 approving a contract with Budget Blinds of Duluth to replace worn blinds in the city training center. All those measures passed on roll call votes recorded as unanimous.

Closed session

At the end of the agenda council moved to a closed session under Minnesota Statute § 13D.05, subd. 3(b) to discuss attorney–client privileged matters relating to pending litigation; the motion passed by roll call.

What happens next

Residents who urged the council to stop or further study the data center left the meeting without a new timeline or staff directive announced on the public record. Council actions at this meeting focused on routine licensing, administrative appointments, trail construction pay requests and code updates; substantive decisions about the proposed data center were not made at this meeting.

Votes at a glance

- Tobacco license, Holiday Station Store (4795 Miller Trunk Highway): Motion to approve by Councilor Gisler; second by Councilor Jelly; roll call recorded four yes votes — approved. - Consent agenda (appointments, warrants, representative designations): Motion by Councilor Peterson; second by Councilor Jelly; roll call recorded four yes votes — approved. - Ordinance 2025-23 (ADUs, second reading): Motion by Councilor Gisler; second by Councilor Peterson; roll call recorded four yes votes — approved (second reading adopted). - Resolution 2026-04 (special use permit — cannabis cultivation, 4599 Abrahamson Road): Motion by Councilor Peterson; second by Councilor Gistler; roll call recorded four yes votes — approved. - Resolution 2026-05 (change order No. 2, Keen/King Creek Trail Segment 4): Motion by Councilor Gisler; second by Councilor Jelly; roll call recorded four yes votes — approved. - Resolution 2026-06 (pay request No. 3, trail contractor): Motion by Councilor Peterson; second by Councilor Gisler; roll call recorded four yes votes — approved. - Resolution 2026-07 (2026 standard construction specifications): Motion by Councilor Jelly; second by Councilor Peterson; roll call recorded four yes votes — approved. - Resolution 2026-08 (contract for blinds in training center): Motion by Councilor Gisler; second by Councilor Peterson; roll call recorded four yes votes — approved. - Motion to close meeting under Minnesota Statute § 13D.05, subd. 3(b): Motion by Councilor Peterson; second by Councilor Jelly; roll call recorded four yes votes — approved (entered closed session).

Sources and attribution

Quotes and attributions in this article come from public comment and staff presentations captured in the meeting transcript: remarks by residents Derek Strumm, Sarah Lopal and Jeffrey Donahghue during public comment; presentations by Chief Grace, city engineer David B and community staff Eric Johnson; and roll-call votes recorded during the meeting. The meeting referenced Minnesota Statute § 13D.05, subd. 3(b) for the closed session.