Loading...
ORD 2026-11 Interim Ordinance Imposing a Moratorium and Authorizing Study of Official Controls for Data CentersCITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO: 2026-11 INTERIM ORDINANCE IMPOSING A MORATORIUM AND AUTHORIZING STUDY OF OFFICIAL CONTROLS FOR DATA CENTERS. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Purpose. The purpose of this Interim Ordinance is to protect the health, safety, and welfare of the citizens of the City of Otsego ("City") by preserving the status quo while the City undertal<es a planning process to study Data Center land uses, as defined herein, during the term of this Interim Ordinance, and to consider possible adoption or amendments of the Zoning Ordinance during the term of this Interim Ordinance. Section 2. Definition. The following term shall have the following meaning when used in this Interim Ordinance: Data center: A facility used primarily for the storage, management, processing, and transmission of digital data that houses computer or network equipment, systems, services, appliances, and other associated components related to digital data storage and operations, together with its accessory and appurtenant facilities. A Data Center may also include offices, air handlers, electric power generators, water cooling systems, water storage facilities, utility substations, and other associated infrastructure necessary to support sustained operations at the facility. Section 3. Findings. The City Council hereby finds and determines that: A. Due to the evolution of new technologies, including artificial intelligence, cloud -based computing, and other digital infrastructure and services, cities within Minnesota have seen a rapid increase in the development and operation of Data Centers; B. The City is a governing body in accordance with the Municipal Planning Act, Minnesota Statutes, Chapter 462 ("Act"), and it has previously exercised its authority pursuant to the Act to adopt the Otsego Zoning Ordinance, codified as Title 11 of the Otsego City Code; C. Data Centers are allowed as a permitted use within the B-4, Business Office District; 1-1, Limited Industrial District; and 1-2, General Industrial District, established by the Otsego Zoning Ordinance; D. Permitted uses within the B-4 District, 1-1 District, and 1-2 District require an application for Site and Building Plan Review in accordance with Section 11-9-2 of the Zoning Ordinance; E. The City has not previously and is not currently in receipt of an application for Site and Building Plan Review for development of a Data Center within the City; 1 F. The City has not previously studied Data Centers as a potential land use; G. The impacts that Data Centers may have within the City to public health, safety, and welfare, including, but not limited to, the natural environment, land use compatibility, and City service capacity and infrastructure, are not fully known or understood at this time; H. The Memorandum dated 2 July 2026 prepared by the City Planner, The Planning Company LLC, is incorporated herein; The Planning Commission considered Data Centers at a special meeting on 6 July 2026 and, following discussion, voted 7-0 to recommend that the City Council adopt an Interim Ordinance prohibiting development of Data Centers within the City to allow a land use study of potential zoning regulations and other official controls to be undertaken; The City Council, in considering the recommendation of the Planning Commission and other evidence received, has determined that the Zoning Ordinance may be inadequate to regulate Data Centers due to the changing nature of such uses, including with respect to appropriate locations within the City, the conditions under which Data Centers may be allowed, appropriate zoning districts, use performance standards, compatibility with existing and planned land uses, and potential impacts to City service capacity and infrastructure; K. Minnesota Statutes, Section 462.355, Subdivision 4 authorizes the City to adopt an Interim Ordinance to regulate, restrict, or prohibit any use, development, or subdivision within the City to protect the planning process and the health, safety, and welfare of the City for the purpose of considering adoption or amendment of official controls defined in Minnesota Statutes, Section 462.352, Subdivision 15; L. It is in the best interest of the City to adopt an Interim Ordinance prohibiting development of Data Centers within the entire City to allow the Planning Commission an opportunity to study whether and how Data Centers may be allowed within the City and to consider amendments to the Zoning Ordinance to appropriately regulate Data Centers. Section 4. Study Authorized. The Planning Commission is hereby authorized and directed to conduct a study of Data Centers including, but not limited to, the appropriate zoning districts for location of Data Centers; whether Data Centers are to be allowed as permitted, conditional, or interim uses; potential regulations and performance standards necessary to mitigate potential negative impacts of Data Centers; how Data Centers are regulated by other local government units; and recommendations as to how the Zoning Ordinance and other official controls should be amended to regulate Data Centers. Section S. Moratorium Imposed. A moratorium is hereby imposed for the entire City on Data Centers, which during the term of this Interim Ordinance shall be a prohibited use. During the period of this moratorium, no new or existing Data Center shall be constructed or expanded in the City, and no application for any zoning approval, building permit, or other City approval contemplating construction or expansion of a Data Center shall be accepted, reviewed, processed, or approved by the City. 2 Section 6. Term. This Interim Ordinance shall remain in effect for one (1) year from its effective date unless it is expressly repealed earlier by the City Council or unless a shorter duration is required by applicable law. If the City adopts an ordinance amending the Zoning Ordinance regulating Data Centers prior to the expiration of the moratorium, this Interim Ordinance shall terminate on the effective date of the Zoning Ordinance amendment. Section 7. Severability. Every section, provision, and part of this Interim Ordinance is declared severable from every other section, provision, and part of thereof. If any section, provision, or part of this Interim Ordinance is held to be invalid by a Court of competent jurisdiction, such judgement shall not invalidate any other section, provision, or part of this Interim Ordinance. Section 8. Effective Date. This Interim Ordinance shall become effective immediately upon its passage and publication. (Remainder of page intentionally blank; signatures follow) ADOPTED by the Otsego City Council this 271h day of July, 2026. MOTION BY: Tanner SECONDED BY: Lund IN FAVOR: Stockamp, Dunlap, Goede, Lund, and Tanner OPPOSED: none CITY OF OTSEGO Jessica L. Stockamp, Mayor 10 ATTEST: Audra Etze , City Clerk 10 11111►►�� OF OZ+&��,, aV vORATED 10 1I ♦ IJ , �I I � 1 I1 fNNESO ` 1181111►�����,,, 4 AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) ss COUNTY OF SHERBURNE I do solemly swear that the notice, as per the proof, was published in the edition of the Star News with the known office of issue being located in the county of: SHERBURNE with additional circulation in the counties of: WRIGHT and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualifica- tion as a qualified newspaper as provided by Minn. Stat. §331A.02. (B) This Public Notice was printed and pub- lished in said newspaper(s) once each week, for 1 successive week(s); the first insertion being on 08/01/2026 and the last insertion being on 08/01/2026. A40RTGAGE FORECLOSURE NOTICES Pursuant to Minnesota Stat. §580.033 relating to the publication of mortgage foreclosure notices: The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or (2). If the newspaper's known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice aree located, a substantial portion of the newspaper's circulation is in the latter county. B ZV�t,�(I)'.. A,Y:G Designated Agent Subscribed and sworn to or affirmed before me on 08/01 /2026 Notary Public "', , � ,1 �rtlHr.litt� Filiwri� �r i',!otElry P111.)lic li m161f tL.St)�t.1 r � � ' i+iy(;�rnnus u,�l[�slnlc, I+unnty 31 JQ1� u Rate Information: (1) Lowest classified rate paid by commercial users for comparable space: $999.99 per column inch Ad ID 1549730 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO: 2026-11 INTERIM ORDINANCE IMPOSING A MORATORIUM AND AUTHORIZING STUDY OF OFFICIAL CONTROLS FOR DATA CENTERS. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Purpose. The pur- pose of this Interim Ordinance is to protect the health, safety, and welfare of the citizens of the City of Otsego ("City") by preserving the status quo while the City under- takes a planning process to study Data Center land uses, as defined herein, during the term of this In- terim Ordinance, and to consider possible adoption or amendments of the Zoning Ordinance during the term of this Interim Ordinance. Section 2. Definition. The fol- lowing term shall have the following meaning when used in this Interim Ordinance: Data center: A facility used primarily for the storage, man- agement, processing, and transmission of digital data that houses computer or network equipment, systems, services, appliances, and other associat- ed components related to digital data storage and operations, together with its accessory and appurtenant facilities. A Data Center may also Include offices, air handlers, electric power gen- erators, water cooling systems, water storage facilities, utility substations, and other associ- ated infrastructure necessary to support sustained operations at the facility. Section 3. Findings. The City Council hereby finds and deter- mines that: A. Due to the evolution of new technologies, including artifi- cial intelligence, cloud -based computing, and other digital Infrastructure and services, cit- ies within Minnesota have seen a rapid increase in the devel- opment and operation of Data Centers; B. The City is a governing body in accordance with the Municipal Planning Act, Minnesota Stat- utes, Chapter 462 ("Act"), and it has previously exercised its authority pursuant to the Act to adopt the Otsego Zoning Ordi- nance, codified as Title 11 of the Otsego City Code; C. Data Centers are allowed as a permitted use within the B-4, Business Office District; 1-1, Lim- ited Industrial District; and 1-2, General Industrial District, es- tablished by the Otsego Zoning Ordinance; D. Permitted uses within the B-4 District, 1-1 District, and 1-2 Dls- tricl require an application for Site and Building Plan Review in accordance with Section 11-9-2 of the Zoning Ordinance; E. The City has not previously and is not currently in receipt of an application for Site and Building Plan Review for development of a Data Center within the City; F. The City has not previously stud- ied Data Centers as a potential land use; G. The impacts that Data Centers may have within the City to pub- lic health, safety, and welfare, including, but not limited to, the natural environment, land use compatibility, and City service capacity and infrastructure, are not fully known or understood at this time; H. The Memorandum dated 2 July 2026 prepared by the City Plan- ner, The Planning Company LLC, is incorporated herein; I. The Planning Commission con- sidered Data Centers at a special meeting on 6 July 2026 and, fol- lowing discussion, voted 7-0 to recommend that the City Coun- cil adopt an Interim Ordinance prohibiting development of Data Centers within the City to allow a land use study of potential zon- ing regulations and other official controls to be undertaken; J, The City Council, in considering the recommendation of the Plan- ning Commission and other evi- dence received, has determined that the Zoning Ordinance may be inadequate to regulate Data Centers due to the changing na- ture of such uses, including with respect to appropriate locations within the City, the conditions under which Data Centers may be allowed, appropriate zoning districts, use performance stan- dards, compatibility with exist- ing and planned land uses, and potential Impacts to City service capacity and Infrastructure; K. Minnesota Statutes, Section 462.355, Subdivision 4 authodz- es the City to adopt an Interim Ordinance to regulate, restrict, or prohibit any use, development, or subdivision within the City to protect the planning process and the health, safety, and wel- fare of the City for the purpose of considering adoption or amend- ment of official controls defined in Minnesota Statutes, Section 462.352, Subdivision 15; L, It Is In the best Interest of the City to adopt an Interim Ordi- nance prohibiting development of Data Centers within the entire City to allow the Planning Com- mission an opportunity to study whether and how Data Centers may be allowed within the City and to consider amendments to the Zoning Ordinance to appro- priately regulate Data Centers. Section 4. Study Authorized. The Planning Commission is here- by authorized and directed to conduct a study of Data Centers including, but not limited to, the appropriate zoning districts for lo- cation of Data Centers; whether Data Centers are to be allowed as permitted, conditional, or interim uses; potential regulations and per- formance standards necessary to mitigate potential negative Impacts of Data Centers; how Data Centers are regulated by other local govern- ment units; and recommendations as to how the Zoning Ordinance and other official controls should be amended to regulate Data Cen- ters. Section 5. Moratorium Im- posed. A moratorium is hereby imposed for the entire City on Data Centers, which during the term of this Interim Ordinance shall be a prohibited use. During the period of this moratorium, no new or existing Data Center shall be constructed or expanded in the City, and no ap- plication for any zoning approval, building permit, or other City ap- proval contemplating construction or expansion of a Data Center shall be accepted, reviewed, processed, or approved by the City. Section 6. Term, This Interim Ordinance shall remain in effect for one (1) year from its effective date unless it is expressly repealed ear- lier by the City Council or unless a shorter duration is required by ap- plicable law, If the City adopts an ordinance amending the Zoning Ordinance regulating Data Centers prior to the expiration of the mora- torium, this Interim Ordinance shall terminate on the effective date of the Zoning Ordinance amendment. Section 7. Severability. Every section, provision, and part of this Interim Ordinance is declared sev- erable from every other section, provision, and part of thereof. If any section, provision, or part of this Interim Ordinance is held to be invalid by a Court of competent jurisdiction, such judgement shall not invalidate any other section, provision, or part of this Interim Or- dinance. Section 8. Effective Date. This Interim Ordinance shall become effective immediately upon its pas- sage and publication. ADOPTED by the Otsego City Council this 27th day of July, 2026. MOTION BY: Tanner SECONDED BY: Lund IN FAVOR:Stockamp, Dunlap Goede, Lund, and Tanner OPPOSED: none CITY OF OTSEGO Jessica L. Stockamp, Mayor ATTEST: Audra Etzel, City Clerk Published In the Star News August 1, 2026 1549730