City attorney explains moratorium options as Kalamazoo commissioners ask staff to draft resolution on data centers

City Attorney Liao told the commission that a moratorium is "a temporary pause in the receipt and processing of certain development applications and permits," and he recommended the zoning-ordinance route if the commission wishes to pursue a moratorium tied to changes in local zoning.

Liao said a moratorium can give staff time to research and craft regulations addressing impacts such as noise, water use, fire-suppression needs and emergency-response requirements. He warned courts view moratoria longer than about a year skeptically unless the city can show steady progress and additional findings to justify extensions.

On procedural options Liao recommended following the Zoning Enabling Act process — starting with the planning commission, holding the required public hearings and returning findings and a recommendation to the city commission for ordinance readings. He cited Portage as an example of a municipality that used a zoning-ordinance moratorium rather than a simple resolution.

Commissioners asked practical questions about how long a moratorium should last and whether it can be terminated early; Liao said a moratorium can be extinguished by a later commission action or expire once the second reading of a zoning amendment occurs. He also explained Michigan vesting law, telling commissioners that a developer typically is not vested against zoning changes until a building permit has been issued and substantial construction has begun.

The discussion turned to timing and scope: Vice Mayor Duncan urged an immediate public signal and asked for a short resolution at the next business meeting as an interim stopgap while staff starts the zoning-ordinance process; Commissioner Bridal urged public vetting and not rushing the drafting. The commission directed staff and the city attorney to prepare a draft resolution for the next Monday meeting and to begin the zoning-ordinance moratorium process with the planning commission. When asked what land uses to include, commissioners asked that staff cover traditional data centers, AI data centers and crypto-mining facilities.

There was no formal moratorium ordinance adopted at the meeting; the action was a direction to staff to draft the resolution and pursue the planning-commission routing for a zoning amendment if the commission wishes to proceed.