Pine Island — Transcript

Wednesday, January 21, 2026

Project Skyway: Data Center Development

Municipal Election Procedures

Community Development and Services

Votes (12)

Consent Agenda

Passed Unanimously

Dissent: None

Moved by Unknown [0-3-24] · Seconded by Unknown [0-3-31]

The consent agenda included approval of regular council meeting minutes from December 16, 2025, Resolution 26-01 for 2026 boards and committees, Resolution 26-02 for accepting donations, a city chamber of commerce rental request, and approval of Michael Edstrom's successful completion of probation.

Public Input on Project Skyway and General Concerns

No official action, public input session

Dissent: Various residents expressed strong opposition, while others voiced strong support.

Numerous residents and former officials spoke both in opposition to and in support of the Project Skyway data center. Opponents voiced concerns about public health and safety (noise, air pollution, construction traffic), inadequate zoning classification (arguing it's heavy industrial, not light), lack of transparency from the city and developer, and the council's refusal to 'pause' the project for further questions. They urged the council to prioritize residents over corporate profit and implement stronger mitigations. Supporters highlighted the significant economic benefits, job creation, increased tax revenue, and the developer's commitment to addressing concerns and partnering with the school district. They emphasized the project as a necessary investment for the city's future and commended the transparency efforts to date.

Resolution 26-03: Approving Annexation Request

5-0 Approved

Dissent: None

Moved by Unknown [0-35-51] · Seconded by Unknown [0-35-58]

Ryan Companies requested the annexation of approximately 440 acres into city limits, which was part of a 2025 orderly annexation agreement with Pine Island Township. This agreement streamlines the annexation process and includes a reimbursement of $495 per acre to the township for lost taxes, totaling $226,975.32, which will be paid by the developer. The City Attorney clarified that such agreements are common and that state law provides strict deadlines, meaning the city cannot simply 'pause' action without consequences.

Resolution 26-04: Accepting Donation from Pine Fire Relief Association

5-0 Approved

Dissent: None

Moved by Unknown [0-38-00] · Seconded by Unknown [0-38-06]

The city accepted a donation of $79,148.88 from the Pine Island Fire Relief Association, derived from their charitable gambling activities. This annual donation is allocated to support the fire department's operating expenses and is handled via a dedicated resolution for auditing purposes and to acknowledge the association's contribution.

Resolution 26-05: Counting of Write-in Votes for Municipal Elections

5-0 Approved

Dissent: None

Moved by Unknown [0-40-52] · Seconded by Unknown [0-40-58]

This resolution updates municipal election procedures to align with state legislation. It requires write-in candidates who intend to receive votes to notify the chief election officer (city clerk) at least 19 days prior to the election. This measure aims to streamline the ballot counting process for election judges.

Economic Impact Analysis Presentation for Project Skyway

No official action, informational presentation

Dissent: None

Aiden Opats from the University of Minnesota presented an economic impact analysis for Project Skyway's phase one. Key findings projected a construction cost of $700 million over two years, with a maximum of 100 permanent employees. Construction could generate 755-640 jobs and $77-66 million in wages directly, with total impacts up to 1,120 jobs and $100 million in wages (including indirect/induced effects). Long-term operations could result in an annual labor income impact of $2-16 million, heavily dependent on how many employees reside in Pine Island. The analysis also highlighted the importance of local housing stock availability.

Property Valuations and Tax Estimates for Project Skyway

No official action, informational presentation

Dissent: None

Mitch from city staff presented estimated property valuations and tax revenue projections for Project Skyway. The first phase (one data center building, office, and 85 acres) is estimated to have a taxable market value of $45 million, nearly doubling the city's current commercial and industrial property value ($47.6 million). This would generate approximately $737,385 annually in city property taxes. The presentation underscored the importance of commercial growth to balance the tax burden and avoid shifting it onto residential properties, explaining the different tax calculation rates for industrial vs. residential properties.

Ordinance 181: Rezoning from Agriculture to Light Industrial with PUD Overlay

5-0 Approved

Dissent: None

Moved by Unknown [0-58-00] · Seconded by Unknown [0-58-05]

The council considered rezoning the Project Skyway property (approximately 482 acres) from Agricultural to Light Industrial (I2) with a Planned Unit Development (PUD) overlay. The Planning Commission recommended approval 5-0. Staff found the rezoning consistent with the city's comprehensive plan, which has historically designated the area for industrial or commercial use. The I2 district is deemed the closest fit for the data center use, despite some differences, which the PUD overlay is designed to address. The City Attorney reiterated that state law dictates deadlines for such applications, preventing the city from simply 'pausing' the process.

Resolution 26-06: Approving Final Plat (Pine Island Industrial Plat)

5-0 Approved

Dissent: None

Moved by Unknown [1-6-48] · Seconded by Unknown [1-6-52]

The council approved the Final Plat for the Pine Island Industrial Plat, which subdivides the initial 80-acre portion of the Project Skyway development area into Lot 1, Block 1, and designates the remaining southern and northern sections as outlots A, B, and C for future development. The approval included 11 conditions, such as a city attorney's opinion on plat compliance, a storm water management plan meeting MPCA requirements, and various easements for public infrastructure (including a newly requested clarification for a water main loop system). The City Attorney noted the complexity of ensuring consent from all parties with property interests due to the assemblage of multiple parcels.

Resolution 26-07: Approving Final Development Plan and Conditional Use Permit (PUD)

5-0 Approved

Dissent: None

Moved by Unknown [1-13-17] · Seconded by Unknown [1-13-22]

The council approved the Conditional Use Permit (CUP) for the Project Skyway's Planned Unit Development (PUD). The PUD narrative outlines how the development varies from standard I2 code and sets specific standards for this project. Notably, an earlier proposed exemption for noise during emergency power generation testing was removed; all testing and maintenance must now comply with MPCA noise standards during normal business hours. The resolution also mandates that future phases of the development will meet MPCA standards at the time of their respective building permits, preventing grandfathering of older standards. The City Attorney clarified that PUDs are a legal way to create unique zoning districts consistent with the comprehensive plan, distinct from variances, and that the city cannot impose stricter environmental standards than the MPCA.

Request to Approve Pine Island Industrial Development Agreement

5-0 Approved

Dissent: None

Moved by Unknown [1-17-57] · Seconded by Unknown [1-18-02]

The council approved the Development Agreement for the Pine Island Industrial project. This extensive agreement outlines the developer's responsibilities for constructing approximately $16 million in off-site and on-site infrastructure improvements (public utilities, roadways). It includes financial securities from the developer to ensure project completion and covers various city fees (water, sewer, stormwater access, legal, engineering) which the developer pays upfront. The City Attorney noted that the developer agreed to all city requirements, including costly off-site improvements, without significant concessions from the city.

Request to Approve Replacement Overhead Doors (City Shop)

5-0 Approved

Dissent: None

Moved by Unknown [1-19-48] · Seconded by Unknown [1-19-53]

Public Works requested approval for the replacement of overhead doors at the city shop, a project budgeted for 2026. The estimated cost for the new header, door, and electrical work is $17,833.

Notable Quotes (24)

Want to publicly congratulate Mr. Ethan for completing his probation who has been a great addition to the public works team and truly appreciate his work and is here.

Mayor [0-3-48]
Consent Agenda

The PUD and application, the PUD application and cup are inadequate and should include stronger conditions that ensure public health and safety. The only reason to push this project through without ensuring safeguards is money. Corporations have always chosen profit over people.

Darcy Simpson [0-7-44]
Public Input on Project Skyway and General Concerns

Residents were simply asking the city leadership to pause his data center project and until critical questions were answered such as electricity, generator, cooling, emissions, noise, etc. Why are you being so naive? City leadership is simply being taken advantage of and is being blinded by running companies propaganda of full-blown lies, lack of information, misleading information, and verbal promises.

Mr. Lannard [0-11-20]
Public Input on Project Skyway and General Concerns

I do want to support the project Skyway with everything I have as a father, husband, grandson, and son. This is a an economic opportunity for our community. It will create construction jobs for skilled trades people who already live in this community and want to continue their careers soon. It does that by providing work close to home.

Jason Lindals [0-17-56]
Public Input on Project Skyway and General Concerns

Project Skyway is truly an investment into the future of P Island and this is exactly the type of thing you should be looking for as elected officials. Developers have addressed construction traffic. They have addressed light pollution. They've addressed water usage. And they have addressed noise pollution. And in reading through the documents, every single one of it is below thresholds as set by the state of Minnesota.

Jonathan Paul [0-22-29]
Public Input on Project Skyway and General Concerns

the order of the annexation agreement also allows for the township to request a certain price um per acre for reimbursement for loss taxes. Um since that would be land gets moved into city limits. they start paying city taxes, the township loses out on that tax revenue.

Stephen/Assistant Administrator [0-29-37]
Resolution 26-03: Approving Annexation Request

The legislature has said that once an application is made of this type. There are deadlines for action. And just to be clear, I know you know this, but to be clear, it's not as though a city that fails to meet those deadlines is just acting outside the law and might be sued over it. It's that the law says if you fail to act, the approval is granted.

Bob/City Attorney [0-34-45]
Resolution 26-03: Approving Annexation Request

Our Pen Island Fire Relief Association um through their charitable gambling um donates a portion of that money to the city every year. Um the city then accepts that in um to be used on expenses for the fire department throughout the year.

Stephen/Assistant Administrator [0-36-54]
Resolution 26-04: Accepting Donation from Pine Fire Relief Association

all right in candidates who intend to receive votes during the election must notify, um, the chief election um, officer at least 19 days prior to the election. Um, just so we know that there will bein candidates. We know who to look for when we're looking through writein um, options.

Stephen/Assistant Administrator [0-39-32]
Resolution 26-05: Counting of Write-in Votes for Municipal Elections

These numbers measure the potential impact of construction and operation of the data center in a good economy. Um these numbers will vary depending on the potential employees who decide to live in Pine Island. This also goes for um construction workers, but at least limited the economic impact will be limited um by how many uh construction workers decide to live in Pine Island or currently live in Pine Island.

Aiden Opats/Community Economics Educator [0-42-50]
Economic Impact Analysis Presentation for Project Skyway

it is important to consider what the current housing stock availability is and vacancy rate. If it is under 5% already, then you do have um what is considered a housing shortage and therefore the projected number of people who are able to live here um will be significantly smaller as they won't be able to find a home to live.

Aiden Opats/Community Economics Educator [0-47-53]
Economic Impact Analysis Presentation for Project Skyway

if a residential and commercial property were both valued at $500,000. And how that gets broken down, as you can see, the residential, uh, property would be $4,100 in uh, city taxes... And then the commercial, as you can see, is 7,585. Um, so it's nearly double the amount of city taxes for commercial versus residential, which is why it's so important that we continue to grow commercially, not just residentially because if you grow too much residential versus commercial, that tax uh the taxes the tax burden is pushed off onto the residents rather than the commercial bid.

Mitch/City Staff [0-50-59]
Property Valuations and Tax Estimates for Project Skyway

the current taxable market value for all existing commercial and industrial property in 2025 of Pine Island was $47,640,200. Um, so the taxable market value would nearly double for commercial industrial the first phase that's being proposed.

Mitch/City Staff [0-52-16]
Property Valuations and Tax Estimates for Project Skyway

the purpose of light industrial district is to provide for an area for industrial light manufacturing and office uses that are generally non-intrusive and which they serve as a transition between intensive sites and residential and business land uses. Um the city finds that this is consistent with um the city staff finds that this is consistent with the proposal before you.

Stephen/Assistant Administrator [0-54-36]
Ordinance 181: Rezoning from Agriculture to Light Industrial with PUD Overlay

this the staff inclusion that's now supported by unanimous vote of the planning commission is that in effect the IQ district is the closest and most compatible district for the uses that are being proposed here and I will just tell you based on what you see in your pack of the overarching language about what the purpose for your I2 zone is I think that's absolutely correct right your I2 zone um is intended for light industrial which your code then describes in a couple of ways.

Bob/City Attorney [0-57-00]
Ordinance 181: Rezoning from Agriculture to Light Industrial with PUD Overlay

The reason that we have 11 uh conditions that are shown um basically the first condition that we had for the uh preliminary plat to the planning commission was that they the developer show include all the appropriate approvals and signature blocks on the um on the title page for the final plat. Uh that condition was met so that we removed that condition um as a condition of approval.

Craig/City Engineer [1-0-50]
Resolution 26-06: Approving Final Plat (Pine Island Industrial Plat)

in regards to say the uh number five here with a public facility easement, do we have to specify under there the uh provisions with a loop coming back to county 11 and a rightway easement for that or

Mayor [1-3-01]
Resolution 26-06: Approving Final Plat (Pine Island Industrial Plat)

The key thing that the plat opinion does is identify all of those interests, easements, mortgages, other types of interests that folks may have in addition to outright ownership of the property. And that that will all have to be satisfied.

Bob/City Attorney [1-5-09]
Resolution 26-06: Approving Final Plat (Pine Island Industrial Plat)

the original development plan had an exemption from the noise standards for um emergency power generation generation testing maintenance um so generator testing things like that um and maintenance on the facility that has been removed. Um there would be no exception for that. Uh those um testing and maintenance would occur during normal business hours as laid out in the resolution and would comply with uh those noise standards.

Stephen/Assistant Administrator [1-8-50]
Resolution 26-07: Approving Final Development Plan and Conditional Use Permit (PUD)

any future phase will meet MPCA standards at the time of building permit. Um so they the current MPCA standards that are approved now would not oftent times whatever is approved at the beginning of the development would continue on with the property um be grandfathered in as we go. um that was not our intention. Um and we wanted to make sure that those standards were were continuously updated.

Stephen/Assistant Administrator [1-9-58]
Resolution 26-07: Approving Final Development Plan and Conditional Use Permit (PUD)

what Pine Island does is we grant the PUB by conditional use permit. You have got in conditional use permit requirements. You'll have to be met and the staff has laid out the reasons why they're met here. Uh but you you do your PUDS by granting a C. That's what's a little bit unique is maybe an overstatement. It's not unique. There are plenty of cities that do it that way. I think the predominant approach is to literally do it by reszoning, but it is legal to do it by C and that's the way you do it.

Bob/City Attorney [1-11-53]
Resolution 26-07: Approving Final Development Plan and Conditional Use Permit (PUD)

The development agreement includes an estimation of costs um that Craig has reviewed um the estimated cost of about $16 million for those infrastructure um improvements as well as financial uh securities that are provided to the city. Um in the event that those are not completed by the developer um they provide us with financial securities that it can be completed.

Stephen/Assistant Administrator [1-14-38]
Request to Approve Pine Island Industrial Development Agreement

It is very very common for developers to resist or flat out refuse to enter agreements regarding improvement paying for improvements off the site of the development. Uh that is not the case here. Brian has agreed to I think essentially everything that we've asked for with respect to off-site improvements.

Bob/City Attorney [1-17-06]
Request to Approve Pine Island Industrial Development Agreement

for the year 2026, we budgeted three separate projects at the city shop. And this is one of the three um replacement overhead over larger just get our equipment in. We got three quotes or three separate codes. The one for construction put new header in and then the door costing the whole electrical and it comes with 17,83 but just looking for your approval to proceed with this project.

Todd/Public Works [1-18-50]
Request to Approve Replacement Overhead Doors (City Shop)

Ordinances & Resolutions (18)

Resolution 26-01Resolution

Approving 2026 boards and committees.

Resolution 26-02Resolution

Accepting donations to the City.

Resolution 26-03Resolution

Approving the annexation request from Ryan Companies for approximately 440 acres.

Resolution 26-04Resolution

Accepting a $79,148.88 donation from the Pine Fire Relief Association.

Resolution 26-05Resolution

Approving the counting of write-in votes for municipal elections, requiring candidate notification.

Resolution 26-06Resolution

Approving the Final Plat for Pine Island Industrial Plat.

Resolution 26-07Resolution

Approving the Final Development Plan and Conditional Use Permit (PUD) for the Project Skyway data center.

Ordinance 181Ordinance

Rezoning the Project Skyway property from Agricultural to Light Industrial with a Planned Unit Development (PUD) overlay.

PUD (Planned Unit Development)Plan

A zoning overlay allowing for flexibility in development standards for the Project Skyway data center.

CUP (Conditional Use Permit)Permit

The mechanism through which the PUD for Project Skyway is authorized.

Comprehensive PlanPlan

The City's master plan, with 2005 and 2011 versions, consistently designating the project area as industrial/commercial.

Development AgreementOther

Agreement between the City and developer outlining infrastructure improvements, costs, and financial securities.

MN Statute 1599Other

Minnesota statute laying out the 60-day timeline for council decisions on zoning amendment applications.

MPCA StandardsOther

Minnesota Pollution Control Agency standards for noise and air quality, which the Project Skyway must adhere to.

MN Statute 116.07Other

Minnesota statute defining powers of the MPCA and limiting local governments from setting more stringent noise/air quality standards.

Pine Island Industrial PlatPlan

The official document subdividing the Project Skyway land into lots and outlining infrastructure.

Economic Impact AnalysisOther

A report by the University of Minnesota assessing the financial and employment impacts of Project Skyway.

Property Valuations and Tax EstimatesOther

A report from city staff estimating the projected property tax revenue from Project Skyway.

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