Ames council pauses LightEdge decision, directs staff to tighten zoning and utility rules

The Ames City Council voted on July 14 to temporarily delay any decision on LightEdge’s proposed data center and on other data-center developments while staff gathers more information and works on code and tariff changes.

Assistant City Manager Brian Phillips told the council the city had received extensive public feedback — including roughly 400 attendees at a June 30 listening session — and that staff recommends four baseline actions: define data centers as a distinct zoning use and update the city’s electric, water and wastewater municipal code and tariffs to address large customers’ infrastructure impacts. “The 4 big items, define data centers as a use, and address the electric, water, and wastewater chapters of municipal code to address these issues,” Phillips said.

The presentation identified problems staff says are rooted in code that predates modern facilities: the zoning definition is outdated, site-plan and review thresholds assume minor industrial uses, and the municipal electric tariff and utilities chapter contain discrepancies that could leave the city absorbing infrastructure costs. Director of Electric Services Donald Kalm said data centers likely would be placed on a contract rate and that a contract can require the user to pay for added capacity or otherwise bear related costs.

Councilors asked how long a pause would last and whether outside consultants should assist. Phillips estimated “at least six months” and possibly up to a year to collect the technical work and return with recommended policy and ordinance language, depending on the scope and council priorities. City Attorney Mark Lambert told council there is no legal requirement to use the word “moratorium” and that a “delay” would have the same legal effect if clearly defined.

After discussion and public comment, the council approved a motion to temporarily delay consideration of LightEdge’s request or any data-center proposal and to ask staff to prepare a resolution outlining the timeframe and requested information. The council also separately directed staff to pursue the four minimum staff-recommended changes to zoning and utility rules.

The council will reconsider the matter at a meeting on July 28, when members said they will finalize the list of technical questions and the length of the delay. Phillips said staff will post materials and that public input will continue to be invited as the work proceeds.