City adds restrictions on data centers, allows for developers to pay for public upgrades in zoning applications

Cash proffers — in which developers pay to offset effects on the community like necessary road expansions —  will now be permitted in zoning applications after a 4-1 city council vote in favor of the change. City officials explained that all zoning requests would still be considered and adjusted individually, but allowance for cash proffers will provide more flexibility in zoning decisions.

Proffers are voluntary conditions attached to zoning requests. City officials and commissioners often work with applicants to develop conditions, but they must be freely attached by an applicant.

Cash proffers attached to residential zoning requests will be limited. The city can accept the money for use in public facilities, which include four main categories: transportation, safety, schools and parks.

Nasser Alsaadun, in his first meeting as a city council member, was the dissenting vote. He said cash proffers could drive up housing costs because developers who pay the city might pass those costs to renters or homebuyers later.

Other council members said the amendment would allow cash proffers to be a possible tool, and would not necessarily be approved in the future. Each application, and the effects of the development on the city, will be considered case-by-case.

City officials looked at other localities as they developed this change to city ordinances. Cash proffers are often used to address the impacts of development, such as funding school expansion when a development will increase student population.

“You may find yourself in a situation where you don’t want it, but this just allows the conversation to happen,” said Adam Fletcher, the city’s director of community development.

Data centers now restricted by zoning code

Construction of data centers in Harrisonburg will now be restricted to industrial zones and will require a special use permit. Previously, construction was automatically allowed in industrial and certain business zones.

City officials who developed the zoning amendment suggested more regulatory control over data center construction and a process to allow public input on individual projects. The application process for a special use permit requires public hearings and approval from city council.

Fletcher told the council that data centers can have some positive effects for the city, such as tax revenue, but can also cause issues with noise and the visual impact of large, monolithic structures. Data centers also require water and use a lot of electricity for their operations and for supporting equipment such as cooling systems. Applications for a special use permit will allow the city to research the needs and impacts of individual developments.

This comes as Gov. Glenn Youngkin and many legislators in Richmond are trying to encourage development of data centers in Virginia. 

Council member Laura Dent said data centers elsewhere in the state are causing problems with their energy requirements, forcing power companies to turn to nonrenewable power. She said environmental groups recommend onsite, renewable electrical generation to combat those issues.

“We need to figure out what works, what we can require,” Dent said. “And the ability to add those conditions to special use permits is crucial because that’s where we have the most leeway, and the most control over what we allow.”

In other business:

  • The council appointed Shannon Porter to the Planning Commission. He is executive director of the Mercy House, which provides support for people experiencing homelessness.
  • The council also appointed Kevin Comer to the Harrisonburg Electric Commission. He has a background in energy services and experience in renewable energy.

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