The controversy over a potential data center in Festus intensified last week after the city released information following Sunshine Law requests from Festus-area residents.
Sunshine Law requests from an unidentified group required the city of Festus to release emails that showed city officials knew about a potential data center project in August, if not earlier, but the topic didn’t become public until October.
The emails also indicated that the data center developer CRG provided city officials with input regarding the regulations the City Council approved on Oct. 27 that would govern any potential data centers developed in Festus. CRG is the same company that proposed developing a data center in St. Charles, but that project was abandoned in August following a public outcry.
On Nov. 10, the Festus City Council annexed some land where the data center project is now proposed, and then on Nov. 24, the council rezoned parts of the annexed land, as well as neighboring tracts that already were inside the city limits.
At the time of the annexation and rezoning votes, city officials said there wasn’t a specific plan for a data center.
Festus City Administrator Greg Camp said the initial discussions with developer CRG involved “hypotheticals,” and no concrete plans had been submitted prior to the City Council approving regulations for data centers, annexing the property targeted for a data center and rezoning the property targeted for use as a data center.
Some of the emails generated by the city indicate that closed-door meetings were set up between council members and other city officials and CRG representatives, but only a minority of council members were present at those meetings to avoid forming a quorum, thus keeping the meetings private.
Grant Winnett of the Festus area has been among the dozens of people who have attended recent city meetings, and he has spoken against a potential data center. He said the emails showing that city discussions with CRG go back to August is troubling.
“I definitely feel it’s disheartening,” Winnett said. “I’ll just say I’m investigating it pretty hardcore. Even though they think they did it properly, was it really in the spirit of the Sunshine Law? The Sunshine documents were pretty revealing on just how the city thinks how they can operate things.”
Winnett said Festus officials answered questions in an ambiguous way when asked if talks about a data center project had happened.
“The biggest thing is the lack of transparency, the wordsmithing,” he said. “When we asked Mr. Camp, when we asked the council were there any plans for a data center – well, they’re just expecting people to not being able to draw a straight line. We know nobody’s come forward and put a development agreement and hard-clad plans in front of you, but you had people reaching out to you from CRG.”
Both Winnett and another data center opponent, Lori Merriman of the Festus area, said the city should slow down the process to develop a data center in the city.
“I’ve always thought there was no transparency on this,” Merriman said. “They’re fast-tracking through the process. I’d like it slowed down.
“I don’t think a data center should be built among residences, and there should be transparency.”
Winnett and Merriman both said they did not contribute money to pay for the records the city provided following the Sunshine Law request. However, both said they were aware of the Sunshine Law request.
Winnett said at one point he intended to file a Sunshine Law request himself but did not after learning that other data center opponents had already done so.
Camp said it is not out of the ordinary for city officials to discuss potential projects with businesses, and there are no guarantees such discussions will lead to the projects being developed.
He said CRG approached the city about a potential data center project, and a meeting between city and CRG representatives took place Aug. 7.
“We have had discussions about a potential project. There are no plans,” he said. “There have been no submittals for a data center. There have been discussions. There have been submittals for annexation. There have been submittals for rezoning. Period. And, beyond that, everything else is hypothetical.
“We have had meetings, discussions, about those hypotheticals. But, until we have a plat, a plan, a request for a building permit – all we’re dealing with so far have been discussions, just as we have in any development process.”
Camp said the one-on-one meetings City Council members had with CRG representatives in order to avoid a quorum, is not unique to the data center project.
“I can think of two off the top of my head,” Camp said. “And, both times, the deal never went through.”
He said one of the situations involved an auto body shop and the other involved an RV dealership.
Camp said he understands that some people have questions and concerns about the project, but added that those matters will be answered if and when CRG submits plans to the city.
“For some folks, they find it upsetting. It makes them angry,” he said. “I understand that. But, I think once we get into the next step, assuming there will be one – and there’s no guarantee that there will be one – but once we get to the next step and we start talking about an actual development, a lot of those fears will be addressed and those questions will be answered.”
Residents have said they are concerned that no impact studies have been conducted on the project, but Camp said that would be part of the process.
“Some of what an impact study would address is in our ordinance (outlining data center regulations),” he said. “So, it’s addressed. Sound, light, traffic, you know, those things people are concerned about, some of them are addressed in the ordinance. If we get a plan submittal, it will all have to be done according to an ordinance we enacted a few months ago.”
Camp stressed it is still early in the process.
“I think people have run ahead down the road and assume that a data center is going to break ground tomorrow,” he said. “And, it’s not. This is the very beginning of this process.”
Camp said he encourages the public to attend meetings involving the data center project and make their feelings about it known.
“Whether you’re for or against it, I hope that everyone will be involved and weigh in and discuss and analyze as we move forward, because that’s what we have to be focused on,” he said.
Camp said the data center project, which could take years to develop, potentially would have a significant financial impact on the city and other taxing entities in the area.
“It’s going to be in that deal, if there is one,” he said. “The tax benefits are substantial. You’re looking at real estate, personal property, gross receipts and sales tax.”
Camp said the city received word that Gov. Mike Kehoe supported the data center project prior to council votes concerning the data center. Jefferson County Executive Dennis Gannon also has indicated his support for the project.