StoryZoning and Subdivision Ordinance Amendments (Including Data Centers)July 24, 2026

Lakeville approves stricter data center rules, new subdivisions

The Lakeville Planning Commission unanimously approved sweeping updates to the city's zoning and subdivision rules on July 24, including new restrictions on data centers and three development projects. The changes reflect growing concerns about environmental impacts and give the city more control over how large industrial facilities operate.

Published Jul 24, 2026

The commission voted 5-0 to approve amendments to the city's zoning and subdivision codes that represent the most significant shift in data center regulation. Under the new rules, data centers must now go through a conditional use permit process—meaning they need Planning Commission approval rather than being automatically allowed. The changes also prohibit large multi-building data center campuses and require detailed studies on energy, water, and noise impacts before approval.

The stricter rules came after public concern about environmental strain. Resident Charles Banks warned that "water is a finite resource" and noted that Dakota County's primary water source, the Jordan aquifer, is already under pressure from rapid population growth. Planning consultant Daniel Lick explained that while the ordinance doesn't set specific water limits, applicants must prove their projects fit within the city's existing service capacity.

In other approvals, the commission unanimously backed three development projects. It approved a conditional use permit for a property at 200010 Hamburg Avenue to allow an oversized accessory building that predates current zoning rules. It also approved an interim use permit for a single-family home at 20975 Howland Avenue in a downtown district now zoned for higher-density development, allowing the homeowner to make improvements while requiring future redevelopment to follow new zoning standards.

The commission also approved a preliminary plat for Palmer Crossing, a 24-lot single-family subdivision at 7880 202nd Street proposed by local builder Paling Family Homes. A nearby resident, Jennifer Clinkner, raised concerns about increased traffic on local streets and requested access to County Road 50, but staff confirmed the project follows existing plans and that county roads are under county jurisdiction. All votes were unanimous. The zoning amendments and subdivision plat now move to the City Council for final approval.

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Votes (4)

Public Hearing: Amendments to Title 10 Subdivisions and Title 11 Zoning of the City Code

5-0 Approved

Dissent: None

Moved by Commissioner Travis [25:12] · Seconded by Unknown Commissioner [25:21]

The Planning Commission reviewed significant updates to the city's subdivision and zoning ordinances. Key changes included clarifications for non-conforming lots, revised deck setbacks, adjustments to off-street parking requirements, and updated sign regulations. Major discussion centered on new data center regulations, which classify them as conditional uses, prohibit multi-building campuses, and mandate detailed energy, water, and noise studies, along with specific location setbacks and enhanced exterior lighting standards. A public speaker, Charles Banks, voiced concerns about the environmental impact of hyperscale data centers, particularly regarding water and energy consumption, and advocated for stricter standards and attracting less resource-intensive businesses. Commissioners inquired about economic impact statements for data centers and staff clarified how water usage is implicitly regulated through city plans. The proactive nature of these updates and the 'living document' aspect of ordinances were also highlighted.

Public Hearing: Conditional Use Permit to allow an accessory building square footage to exceed 1,250 square feet at 200010 Hamburg Avenue

5-0 Approved

Dissent: None

Moved by Commissioner Travis [26:27] · Seconded by Unknown Commissioner [26:38]

The Commission considered a CUP for a property where a new home is planned but an existing large outbuilding, built in the early 1980s, exceeds current accessory structure size limits for its RST2 zoning district. The 10-acre parcel's zoning has changed significantly since the outbuilding's construction, necessitating the CUP. Staff recommended approval with stipulations, acknowledging the property's unique history and size relative to the zoning district. No public comments were made, and no questions were posed by commissioners.

Public Hearing: Interim Use Permit to allow a single family dwelling in the RH CBD high-density residential district, the central business district

5-0 Approved

Dissent: None

Moved by Commissioner Travis [43:24] · Seconded by Unknown Commissioner [44:26]

The Commission reviewed an IUP for 20975 Howland Avenue, a single-family home located in a district (RHCBD) now zoned for higher density, making the single-family use non-conforming. The IUP allows the homeowner to make additions and improvements, recognizing that these homes will likely remain for some time, even if the area is ultimately planned for redevelopment. The permit includes a stipulation that if the home is removed or the property redeveloped, it must conform to the high-density zoning. Staff noted only 15 such parcels exist in the downtown area. No public comments or commissioner questions were raised.

Public Hearing: Preliminary Plat of Palmer Crossing (24-lot, 1 outlot single family subdivision at 7880 202nd Street)

5-0 Approved

Dissent: None

Moved by Commissioner Kuza [43:24] · Seconded by Unknown Commissioner [44:26]

The Commission reviewed a preliminary plat for Palmer Crossing, a proposed 24-lot single-family subdivision, including a stormwater outlot. The project, presented by local developers Paling Family Homes, aligns with the property's RST2 zoning and low-medium density guidance. A resident, Jennifer Clinkner, expressed concerns about potential traffic increases on 204th Street and requested an access point to County Road 50 to alleviate congestion, citing safety for children. Staff clarified that Gresham Way was always intended as the access point, County Road 50 access is under county jurisdiction, and a traffic study was not warranted by the number of units. Staff also confirmed the project's compliance with the city's new tree preservation ordinance and clarified that this project was exempt from the recent building moratorium. Commissioner Kuza praised the local developers and the project's fit with the existing neighborhood.

Notable Quotes (12)

basically this is to ensure that the documents that govern land use within the city are up to date and current. Uh we also clarify any existing provisions if there's question or confusion and then reflect changes made by uh the legislature as part of the most recent session.

— Daniel Lick/Planning Consultant [1:57]
Public Hearing: Amendments to Title 10 Subdivisions and Title 11 Zoning of the City Code

So the most significant change here is that the data centers going forward would be uh specifically allowed as a conditional use uh which involves again the process of coming forward to the planning commission having the application reviewed based on criteria established in the zoning ordinance to ensure that it's consistent with the city's comprehensive plan compatible with surrounding land uses and doesn't cause any negative impacts to city infrastructure or service capacity.

— Daniel Lick/Planning Consultant [8:34]
Public Hearing: Amendments to Title 10 Subdivisions and Title 11 Zoning of the City Code

Water is a finite resource. Dakota County is supplied by the Jordan aquifer. This is a shared resource already under pressure due to rapid population growth in Dakota County.

— Charles Banks/Resident/Community Group Member [16:05]
Public Hearing: Amendments to Title 10 Subdivisions and Title 11 Zoning of the City Code

So, while we don't have specific criteria in here saying you can only use this much water, that's inherent in the system plan and in the comprehensive plan and the criteria that are in the zoning ordinance that say you must demonstrate that this use can be accommodated within the city's plan service capacity.

— Daniel Lick/Planning Consultant [20:17]
Public Hearing: Amendments to Title 10 Subdivisions and Title 11 Zoning of the City Code

He currently has 10 acres property and um there's a larger out building on that property some years ago. I believe the zoning was changed which made his building probably now wouldn't be passed on a normal lot. But he does have a 10acre parcel that is staying intact. So we're just asking for a conditional use to keep his out building intact.

— Rod Just/Pinnacle Family Homes [27:39]
Public Hearing: Conditional Use Permit to allow an accessory building square footage to exceed 1,250 square feet at 200010 Hamburg Avenue

Since that time, the the property uh with the last comp plan, last comp plan or two uh has been reszoned. It's now an RST2 district. Uh for comparison, this is a 10acre parcel. RST2 district would allow a minimum lot size of between 7500 square feet and 9520 square feet for a corner lot.

— Miss Jensen/City Staff [28:38]
Public Hearing: Conditional Use Permit to allow an accessory building square footage to exceed 1,250 square feet at 200010 Hamburg Avenue

Mr. Pitcher had approached staff um with his property that you can see here highlighted and circled in the yellow. Uh interested in doing a a small addition to the home. Um would meet all setback requirements that were required. Uh but because the property had been reszoned with the last comp plan to be a higher density downtown district from the uh lower density uh or mixed density that it was previously. Single family homes were no longer allowed as a use within that district.

— Miss Jensen/City Staff [29:57]
Public Hearing: Interim Use Permit to allow a single family dwelling in the RH CBD high-density residential district, the central business district

By doing this as an interim use permit, it does um put a a stipulation on the approval that once that home is either no longer there, the property is redeveloped, it wouldn't be allowed to go back to being a single family use. It would have to comply with the ordinance requirements.

— Miss Jensen/City Staff [31:02]
Public Hearing: Interim Use Permit to allow a single family dwelling in the RH CBD high-density residential district, the central business district

We were born and raised in Lakeville. We currently still live in Lakeville. Our wives keep giving us crap because they want us to get out of Lakeville, but we won't ever leave Lakeville. Um so this is something that we're really excited about.

— Nick Paling/Paling Family Homes [33:48]
Public Hearing: Preliminary Plat of Palmer Crossing (24-lot, 1 outlot single family subdivision at 7880 202nd Street)

So we're worried about the increased traffic because there's no access to 50 with this neighborhood. I guess we were all hoping that there would be an access point to 50 to help alleviate some of the traffic problems that we know are just going to get 10 times worse.

— Jennifer Clinkner/Resident [36:26]
Public Hearing: Preliminary Plat of Palmer Crossing (24-lot, 1 outlot single family subdivision at 7880 202nd Street)

We have no control over the access to County Road 50. It is a county jurisdiction and there is not the ability to have an access point on this roadway based on where there are other access points along County Road 50. They control where those curb cuts are created onto their county road system.

— Miss Goodro/City Staff [38:43]
Public Hearing: Preliminary Plat of Palmer Crossing (24-lot, 1 outlot single family subdivision at 7880 202nd Street)

Um so the mortorium was adopted on April 21st and when the moratorum resolution was or ordinance was prepared it did exempt projects that had submitted by that time for preliminary plot which this project was included in that.

— Miss Goodro/City Staff [41:20]
Public Hearing: Preliminary Plat of Palmer Crossing (24-lot, 1 outlot single family subdivision at 7880 202nd Street)

Ordinances & Resolutions (17)

Title 10 SubdivisionsOrdinance

City code section under review for amendments.

Title 11 ZoningOrdinance

City code section under review for amendments.

City CodeOrdinance

Overarching legal framework for city regulations.

DNR's model ordinance regulating shoreland areasOrdinance

Referenced for provisions related to adding decks to pre-1971 homes.

Comprehensive PlanPlan

Guiding document for future development, land use, and service capacity, including water usage.

Water System PlanPlan

Specific plan evaluating water infrastructure and consistency with city's water accommodation.

Zoning OrdinanceOrdinance

Governing document for land use within the city, undergoing annual updates.

Conditional Use PermitPermit

Required for specific land uses or activities that may be appropriate in certain zoning districts but require individual review and conditions.

Interim Use PermitPermit

Allows a use not permanently permitted in a zoning district for a temporary period until a permanent use is established.

Planning Report dated July 17th, 2026Other

Staff summary memo for ordinance amendments.

Staff reportOther

Document containing staff recommendations and stipulations for permits.

Findings of FactOther

Official documentation supporting decisions made on permit applications.

Preliminary PlatPlan

Initial design of a subdivision, outlining lots, roads, and open spaces.

Tree Preservation OrdinanceOrdinance

City ordinance governing the removal and replacement of trees in developments.

ResolutionResolution

Formal statement or decision, referenced in connection with the building moratorium.

Planning report dated July 16, 2026Other

Staff report for the Conditional Use Permit for 20010 Hamburg Avenue and Interim Use Permit for 20975 Howland Avenue.

Planning report dated July 15, 2026Other

Staff report for the Palmer Crossing preliminary plat.

Source document

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Other Topics from This Document

  • Conditional Use Permit for Accessory Building

  • Interim Use Permit for Single Family Dwelling in RHCBD

  • Preliminary Plat for Palmer Crossing Subdivision

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