Hastings pauses data center permits, approves water line project
The Hastings City Council unanimously approved an interim moratorium on data center permits and awarded a $718,775 contract for water service line replacements at its August 17 meeting. The council also authorized environmental litigation against an unspecified party.
The council's most significant action was adopting a temporary freeze on data center permits, effective for up to one year. Community Development Director John Hinsman explained that the city's current code doesn't define data centers, leaving officials unable to properly regulate them. "What the interim moratorium ordinance would do is it would create a pause in the acceptance, deliberation, or issuance of any permits related to data centers over the next year or so," Hinsman said.
Public concern about data centers centered on environmental impacts. Resident John Larson warned that data centers "ruin the water in every community that they're in and they turn it brown." Council member Hauschild echoed these concerns, noting that data centers "demand excessive local resources" and typically use evaporative cooling systems that drain municipal water supplies while operating backup diesel generators that emit harmful pollutants. The council voted unanimously to approve the moratorium.
In a separate action, the council awarded the water service line replacement contract to Fitzgerald Excavating for $718,775, the lowest of seven qualified bids. Project manager Justin Babcock noted the contractor has extensive experience in utility and residential reconstruction projects and plans to use a pull method for replacements while restoring sites as work progresses. The project is partially funded by a $1 million grant from the Minnesota Public Facilities Authority.
The council also took steps toward environmental litigation, unanimously authorizing the law firm Pawa Law Group to engage local counsel from Lockridge Grindal Nauen PLLP. City Administrator Dan Washa emphasized that local counsel fees would be paid from Pawa Law Group's share of any recovery, meaning no direct cost to the city. The council then authorized Pawa Law Group to initiate environmental litigation, though specific details about the case were not disclosed during the public meeting.
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Votes (4)
Interim Moratorium Ordinance Related to Data Centers
Dissent: None
Moved by Council member Hauschild [Approx. 0m 18s] · Seconded by Council member Leifeldt [Approx. 0m 18s]
Community Development Director John Hinsman introduced the second reading and adoption of an interim moratorium ordinance on data centers, citing the lack of a definition in current city code and the need for time to research impacts and develop regulations. A public member, John Larson, expressed concerns about data centers' impact on water quality. Council members, including Leifeldt and Hauschild, supported the moratorium as a proactive measure to prevent potential issues such as excessive water usage and harmful pollutants, referencing experiences in other communities.
Contract Award for Water Service Line Replacement Project Phase One
Dissent: None
Moved by Council member Pemble [Approx. 0m 21s] · Seconded by Council member Lawrence [Approx. 0m 21s]
Justin Babcock, WSB project manager, presented the recommendation to award the contract for the first phase of the water service line replacement program. Fitzgerald Excavating submitted the lowest qualified bid at $718,775, and was noted for their extensive experience in similar utility and residential reconstruction projects. The project costs are aligned with the city's budget, which includes a $1 million grant from the Minnesota Public Facilities Authority.
Authorization to Engage Local Council for Environmental Litigation
Dissent: None
Moved by Council member Pemble [Approx. 0m 23s] · Seconded by Council member Beck [Approx. 0m 23s]
City Administrator Dan Washa explained that the city's legal services contract with Pawa Law Group for environmental litigation anticipates engaging local counsel. He recommended authorizing Pawa Law Group to work with Lockridge Grindal Nauen PLLP, emphasizing that local counsel's fees would be covered from Pawa Law Group's share of recovery, thereby incurring no additional cost to the city.
Initiation of Environmental Litigation
Dissent: None
Moved by Council member Leifeldt [Approx. 0m 24s] · Seconded by Council member Verchota [Approx. 0m 24s]
City Administrator Dan Washa, following a prior discussion with Pawa Law Group on legal strategy, recommended that the City Council authorize Pawa Law Group to proceed with initiating environmental litigation. This marked a formal step by the city to pursue legal action regarding environmental matters.
Notable Quotes (6)
What the interim moratorium ordinance would do is it would create a pause in the acceptance, deliberation, or issuance of any uh permits related to data centers over the next year or so. The purpose behind that is when we take a look at our code as it sits right now, we do not define data centers.
From what I see, you know, nobody really even knows what they are, what they do, and and except uh, they ruin the water in every community that they're in and they turn it brown. And I just think that there needs to be more looking into this before anything's approved or any data centers come to Hastings, which is such a beautiful place, and not get it destroyed.
Data centers can be really poor fit for our small communities um as they demand excessive local resources. Um they can be problematic facilities um that typically rely on evaporating cooling, which can drain our municipal water supplies, and utilize backup diesel generators that emit harmful pollutants.
The low bid was Fitzgerald Excavating with a base bid of $718,775. Fitzgerald Excavating has extensive experience in residential reconstruction projects and utility projects. And in initial discussions with Fitzgerald Excavating, they plan on using the pull method to complete water service line replacements and then complete restoration activities in kind as they go site by site completing the homes we've selected um for this project.
Pawa Law Group uh, proposes working with uh, Lockridge Grindal Nauen PLLP uh, as local council. Uh, would note that local council's fees would be paid uh, from Pawa Law Group's share of recovery uh, if if there is.
City Council met with uh, Pawa Law Group uh, couple weeks ago on the 3rd to discuss legal strategy regarding potential environmental litigation. Uh, my recommendation is to authorize Pawa Law Group to initiate environmental litigation at this time.
Ordinances & Resolutions (6)
Official declaration by the City of Hastings recognizing August for awareness of the opioid and fentanyl crisis.
Ordinance enacted to temporarily halt the acceptance and processing of permits for data centers.
The City's regulatory framework, specifically identified as lacking definitions for data centers.
A plan that reserves $1 million for the City of Hastings as part of a state grant for water service line replacement.
The initial phase of a city project to replace water service lines.
An existing contract with Pawa Law Group for environmental litigation, anticipating the engagement of local council.
Source document
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Other Topics from This Document
Interim Moratorium Ordinance for Data Centers
Water Service Line Replacement Project Phase One Contract Award
Authorization for Local Council in Environmental Litigation
Initiation of Environmental Litigation
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