The city of Valparaiso is halting all efforts toward exploring a proposed data center on land that had been purchased for a sports complex. Mayor Jon Costas made the announcement Tuesday, a day after the city council heard hours of public comment against the proposal. Residents cited a number of concerns, including noise, power and water consumption and the impact on property values.
Neighboring landowner Greg Kuehl accused the city of pressuring landowners to obtain the property only to sell it at a profit a few years later. "What's going to keep you all from coming across the street, annexing more property, taking my farm that we've owned since 1873?" Kuel asked council members Monday. "I'm the fifth generation. I have children that will be the sixth. Now, I've entered this fight. And I won't lose."
Meanwhile, Dr. Hector Juan Marchand was concerned about the potential health impacts. He said the one study he was able to find projected negative outcomes.
"There is so much we do not know about the long-term potential detrimental effects on data centers that no person should want a data center to be built next to their house in a residential neighborhood where there are schools and children being raised." Marchand said.
Others voiced opposition to data centers in general, citing concerns about data privacy.
But Costas argued Monday that there was no formal project for the council to reject. There was only an option agreement approved by the redevelopment commission allowing a potential data center developer to purchase the property.
"Obtaining an option on a piece of ground was the very first step, and it allows them to then go to the next step, which was talking about acquiring the necessary power and water to see if it's even possible," Costas said.
He noted that for anything to be built, the land would have to be rezoned, which requires public input and council approval.
Still, some residents were frustrated that the proposal even got that far.
Melissa Reed said the redevelopment commission should hold public forums before taking action toward a large land sale. "Especially in the case of a change from a park to an industrial use," Reed added. "That's a huge jump."
A few council members agreed that the city could have been more transparent and also noted the quick timeframe potential developers were given to submit proposals for the land. But council member Barbara Domer felt residents wouldn't have wanted a data center, either way.
"Regardless of the explanation of the lack of transparency, regardless of the fact that we didn't publicly say the sports park was canceled, none of those really matter," Domer said.
In his statement Tuesday, Mayor Costas said the potential developer, Agincourt, has agreed to withdraw from pursuing the project and to release its option on the land. Costas also said he regrets the angst and frustration the proposal has caused and said he takes full responsibility for how it was communicated.
