Gray staff urges repeal of growth ordinance and temporary moratorium on data centers to buy time for zoning rules

Tammy Monson, Gray's director of code enforcement and planning, told the council at a July 14 workshop that recent state laws altered lot-size and sewer rules in ways that make the town's existing growth ordinance less useful. Monson described LD 1829 as a rushed update that for a short window allowed 5,000-square-foot lots in places with public water and permitted shared private septic at 2,000 gallons per day — a change she said could enable denser development in areas the town hadn't intended.

"The only way to stop that or to slow it—or now was to do a growth ordinance," Monson said, explaining why the town previously adopted its ordinance. She also told councilors that LD 2173, coming into effect about a year from now, will again change lot-size thresholds and sewer language and could remove the 5,000-square-foot window entirely.

Monson asked the council to consider repealing the local growth ordinance because the state changes have shifted the policy landscape and because a repeal would allow staff and the council to avoid a short-term rush of permit applications tied to the ordinance's cap. She recommended using the interval to update the town's zoning rules so they reflect state law and local priorities.

Monson also introduced a draft data-center moratorium, prepared by the town's attorneys, that would temporarily pause permitting for data centers while the town evaluates zoning definitions, permitted uses and performance standards. She said moratoria typically last 180 days and can be renewed if needed, but she would confirm permissible durations with legal counsel.

Councilors and advisory-committee members pressed staff on likely impacts. They repeatedly named three issues as the most important: electricity demand, water use for cooling and the limited local employment a data center might provide. "They do use a lot of water," Monson said, describing typical recirculating cooling systems and the resulting constant draw from on-site supplies.

Several councilors said they supported a short pause to allow staff to draft clear rules. Councilor Simona said she would "go for the year" if legally allowable, arguing six months might not be enough time to assemble monitoring and standards. Staff committed to return with legal research on moratorium length and a timeline for drafting zoning text and definitions.

The council did not adopt any ordinance at the workshop. Monson said both the growth-ordinance repeal and the moratorium would be brought back for formal action at the August meeting packet for further discussion and possible votes.