Planning Commission forwards draft data-center zoning ordinance to city council after debate on decommissioning safeguards

The City of Saginaw Planning Commission voted to forward a proposed zoning ordinance to city council that would establish rules for siting and operating data centers in the city, while several commissioners urged clearer language to require financial surety for decommissioning.

City Attorney Amy Lusk, who presented the draft, told commissioners the ordinance was built from legal principles and planning best practices at the council's request and asked that the commission recommend the ordinance to council for consideration. "Given that, we would ask that after the close of the public hearing that this body would approve a recommendation to the city council for their consideration and adoption of this," she said.

A speaker and several commissioners raised a policy question about ensuring funds are available to decommission a data center at the end of its useful life. One commissioner recommended the ordinance require a surety bond or cash deposit at the time of construction, saying, "We should actually require, in my opinion, a minimal security bond at the time of construction for the purpose of decommissioning." The city attorney responded that the ordinance gives the city discretion to set the amount appropriate to the scale of any application.

Commission members also noted the zoning ordinance limits data centers to industrial zoning and that there were no active data center applicants in the city at this time. Commissioners said the ordinance can be amended later and urged the council and staff to consider adding explicit language about surety and whether decommissioned sites must be returned to prior conditions. After discussion the commission voted to forward the draft ordinance to council for consideration and potential amendment.