Palo moves ahead with data center ordinance

(Radio Iowa) – The Palo City Council approved the second of three readings on a data center ordinance Monday with a 4-1 vote. The proposal was put on hold for five weeks and council members say they spent the time evaluating data centers, including visits to other facilities in Iowa. Tax revenue was cited as a primary reason council members support the project. K-C-R-G T-V covered the comments as council member Van Kerckhove said the financial impact would be significant for the city.

“I mean I remember a time just a few years ago when we were trying to fix one of our mowers as opposed to buy a new one, and this can really change that narrative,” Van Kerckhove said. More than 100 people showed up for the meeting, and a majority said they are against the data center. Linn County resident Wally Taylor was among those who spoke.

“It’s disappointing that in your five weeks of alleged research, you apparently made no effort to try to change the ordinance or try to make a better ordinance. Your focus seemed to be on trying to convince all of us that data centers are great things,” Taylor said.

One more reading and vote is needed to pass the ordinance and then Monday’s vote was the second of three required readings. Mayor Brian Busch said once the council approves the ordinance, the next steps will be annexation, followed by a development agreement.

Busch said because no development agreement is in place, some details remain unresolved – including the exact location of the land near the nuclear plant, which is set to come back online by 2029.