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Council discusses one-year moratorium on data centers; city attorney warns of takings risk
Summary
Council members discussed placing a moratorium on data-center development after county interest; the city attorney advised against an outright permanent ban because it could prompt legal claims and recommended a one-year moratorium and drafting a resolution for council consideration.
A council member asked the council to consider a moratorium on data centers after reporting that county and some state-level efforts were moving to restrict data-center construction.
City attorney Michelle warned that an outright permanent ban could create takings claims if properties are zoned for such uses and recommended a one-year moratorium while the city studies policy and coordinates with the county. "An outright ban permanently on data centers would give rise to purchase claims," Michelle said, warning of potential compensation obligations and legal risk.
Michelle advised the council to direct her to draft a resolution instituting a one-year moratorium and suggested sending a representative to the county's special meeting so the city's position is considered. Council members asked for the resolution to be drafted; the transcript shows the presiding officer asking for a motion to have the city attorney draft the moratorium resolution but the outcome is not recorded in the excerpt.
The attorney recommended the moratorium approach as a measured step that avoids immediate, potentially compensable restrictions on property while preserving the city's ability to study zoning and siting issues for data centers.
