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Mount Shasta staff report potential annexation of former Crystal Geyser site as council hears data‑center interest

Mount Shasta City Council · June 22, 2026
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Summary

City staff said Supervisor Valenzuela could support annexation of the former Crystal Geyser site and adjacent orchard, and reported an outside party interested in using the Crystal Geyser site for a data center. Staff also updated the council on continued code and licensing issues with the Summit View Inn (formerly Loews) and unpaid transient occupancy taxes.

City staff told the Mount Shasta City Council that County Supervisor Valenzuela has expressed willingness to support annexation of two properties — the former Crystal Geyser site and an adjacent orchard — and that an outside entity has approached the city about possibly using the Crystal Geyser site as a data center.

In an update during staff comments, a staff member described a longstanding urban enforcement issue at a hotel that operated under several names (including Loews and later Summit View Inn). "The business license for this hotel is still under the Loews... they were not paying their TOT taxes. We had to sue them twice to get back a considerable amount of money," staff said, adding that despite a cease‑and‑desist the property appears to continue taking online reservations.

On the former Crystal Geyser property, staff said they will meet with the interested party later in the week and will bring any substantive information to council; staff expressed skepticism about whether a data center would deliver local benefits unless the proposal included unusual community commitments.

Council members later placed an annexation cost/time desktop review on a future agenda and asked staff to return with a proposal for required staff time and costs for starting an annexation. Staff also listed annexation among future agenda items and suggested it was a high priority relative to other economic development moves.

No formal annexation action was taken at the meeting; council directed staff to begin laying out the process, costs, and timeline for future consideration.