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City manager outlines Covenant Park inquiry: township zoning, water use, and revenue possibilities
Summary
City staff said Lowell Township—not the city—has jurisdiction over proposed data-center zoning at Covenant Park. Staff said Consumers Energy assured the city that the project's power costs would be borne by an end user, and early estimates suggest the project could boost city taxable value by 1–6 times the current $175 million figure; residents raised concerns about water use and asked for regular updates.
The Lowell City Council heard an extended report from city staff about an inquiry to Lowell Township to allow data centers in a light-industrial zone at Covenant Park.
City staff emphasized that zoning authority for the property sits with Lowell Township; no end user has been announced and any sale or negotiation remains private. The manager told council the city has received assurances from Consumers Energy that the project, if it proceeds, would not impact electric rates because an end user would cover the required utility upgrades. The manager said earlier projections indicate the project could generate between one and six times the city’s current taxable value (the manager stated the city’s current taxable value is about $175,000,000), and that the first priority for any new tax revenue would be capital improvements to water and wastewater facilities.
On water use, the manager told the council that, based on available information, newer data centers typically have cooling technologies that can make water use roughly equivalent (per day) to a residential development; he said the city has not seen indications the project would 'strain the aquifer.' He also cautioned that the details were preliminary, financing scenarios were not finalized, and staff were being careful not to speculate until more factual information is available.
During public comment, residents asked for more transparency and regular updates. One commenter said some research indicates data centers can use millions of gallons of water depending on cooling systems; another asked that the city provide monthly updates at council meetings on the Covenant Park process. The manager said the Right Place (an economic development partner) is organizing community forums and staff plan to share information as it becomes final.
Council members asked how tax revenue would be applied; the manager said while water and sewer improvements are normally funded by rates, the city is exploring using new tax revenue to tie financing to capital projects to avoid burdening existing ratepayers, but that final financing decisions remain pending.
The council did not take any formal zoning or funding action; staff said they will return with more concrete agreements and recommended steps once negotiations and jurisdictional steps advance.
