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HomeMy WebLinkAboutEconomic Development Minutes 2025 05-06-25 APPROVED 7/1/25 Page 1 of 5 UNITED CITY OF YORKVILLE ECONOMIC DEVELOPMENT COMMITTEE Tuesday, May 6, 2025, 6:00pm East Conference Room, #337 651 Prairie Pointe Drive, Yorkville, IL In Attendance: Committee Members Vice-Chairman Chris Funkhouser Alderman Dan Transier Absent: Alderman Seaver Tarulis, Alderman Joe Plocher Other City Officials City Administrator Bart Olson Assistant City Administrator Erin Willrett Community Development Director Krysti Barksdale-Noble Alderman Ken Koch Senior Planner David Hansen Planner 1 Sara Mendez City Consultant Lynn Dubajic Kellogg Katelyn Gregory, Economic Development Coordinator Other Guests Keith Landovitz Dale Konicek Kitty Moore Emily Anderson, Legacy Farms Ryan Anderson, Legacy Farms Bernie Weiler, Mickey, Wilson Dave Silverman, Mahoney, Silverman & Cross Matt McCarron, Pioneer Development Michael Konicek Michael Ball, Curran Contracting David Bossy, Mid-America Development John Bryan, Geneva Construction/Legacy Farms Kim Kaskel M. Gilbert Brett Stauffacher, Local 150 Via Zoom: Jen Rakas, Brad Sanderson, Katie Fraser, Sean R., Matt Gilbert, Anonymous The meeting was called to order at 6:03pm by Vice-Chairman Chris Funkhouser and he stated there was no quorum. Mr. Olson explained since only 2 of the 4 committee members were present, no votes or final action would be taken. He said the meeting would move forward with his presentation about data centers and the one for Cardinal Development, along with citizen comments and questions. Mr. Bernie Weiler said he represents some of the neighbors near the new development. He said when a public meeting is called to order with no quorum, the only action you can take is to adjourn the meeting. He said discussion of public business is a violation of the Open Meetings Act. Mr. Olson said he had cleared this action with the city attorney and said all discussion would be informational. Mr. Olson said he would be directing his comments about the properties to the west since many of the attendees present were represented by Mr. Weiler. Page 2 of 5 Presentation by Mr. Olson Overview: Mr. Olson provided a Power Point presentation with general information about the proposed data centers in Yorkville. They provide data storage, computing capacity and are needed for artificial intelligence and they appear as network racks with server space. He said several data center projects have already been approved. Yorkville has been chosen due to access to power generation, thousands of available acres and the ComEd substation can be expanded easily. Soo Farm wind farm has a terminus near Eldamain Rd. which serves as a giant electric line from wind farms in Iowa and terminates in Illinois into the substations. Data centers are an ideal land use, generate minimal noise and pollution, they do not generate children for the schools and they produce large amounts of tax revenue which helps the schools and tax base. Illinois also has incentive programs. They generate a low number of jobs, but they are higher paying. Specifics: There are 3,000 acres of properties interested in data centers. He pointed out where each proposed or approved data center project is located. Eldamain Rd. is the boundary between Yorkville and Plano, but the school districts have different boundaries. Some of the projects are in portions of the 2 districts and tax revenue will be divided. Tax Revenues: Electrical utility tax is paid by all on electric bills, including data centers. Mr. Olson shared figures of the substantial estimated tax that will be paid by Cyrus 1. He estimated $500,000 to $1 million per building. He said the current amount of revenue Yorkville receives from electrical utility tax is $750,000. Data centers also pay property taxes at the same rate as other properties. Mr. Olson explained that while personal property taxes cannot be eliminated, they could be reduced based on taxes received from the data centers or other taxes could be reduced. Mr. Olson said that developers indicate only 1 or 2 buildings will be built at a time with a buildout time of 10-20 years. Resident Concerns Mr. Olson said staff reached out to other agencies and to the biggest data center in the U.S. in Virginia with 300 buildings. The main issues were: power deficit, noise and new power lines. He said staff spoke with ComEd about power due to the potential of 3,000 acres of data center needs. ComEd is conducting some studies on usage and said capacity corridors are likely sufficient without new power lines. He said the city can't reject a land use decision if they are unsure about power capacity. Administrator Olson also noted that Soundscape has been engaged to study the noise issues, attend review meetings, determine placement of equipment for noise abatement, site recommendations and ongoing monitoring etc. The city does have a comprehensive noise ordinance and he explained the allowable decibels. Tonal (constant hum) noises can incur a penalty. The ordinance is also applicable to residents who may reside outside city limits. He said there are some limits and exemptions during construction. Landscape buffers and berms will be used to mitigate noise. Water Usage: The city has not allowed water cooled data centers for heat dissipation, only air- cooled systems. A recent newspaper article mentioned Minooka's water usage of 1 million gallons per day for their data center. Mr. Olson noted that Yorkville's entire use in a day is 2 million gallons. The capacity coming from Lake Michigan will be between 5 million and 8 million gallons per day and that water is expected in 2028. He said data centers will use less water than a subdivision. Page 3 of 5 Construction Phasing: Building will start from west to east, away from residences. The cost of infrastructure improvements is paid by the developer upfront. This removes the risk from residents. Projects must finish a roadway for use during construction prior to building and electrical system upgrades must also be completed upfront. Conclusion: Mr. Olson noted that all projects are listed on the city website and he provided upcoming meeting dates and ways in which opinions can be voiced. A meeting attendee asked that any variances being requested by developers be included in a future presentation. Vice-Chairman Funkhouser opened the floor for questions and comments. Public Comment: David Bossy: He asked if there is any new info about the water being extended from Lake Michigan. Mr. Olson replied the bid package is being bid out by the DuPage Water Commission and the city has a $140 million WIFIA federal loan and $20 million of state loans. He noted that the DWC is also looking into their own intake connection to Lake Michigan. A comprehensive financing package and water rates will be discussed. Ryan Anderson: He asked when attendees would have gotten notice of this meeting since he found out at the last minute. Mr. Olson replied that no notice is required by the state for committee meetings, however, for Public Hearings, anyone within 500 feet of the site, would get a notice for the Planning and Zoning meeting. A notice is published in the newspaper for City Council meetings. The property will also be posted with a sign for the Public Hearing. John Bryan: He said as a contractor he doubts the water will be coming in 2028 and more likely in 2029. He finds it shocking that Yorkville will be spending all this money to bring water from Lake Michigan and there is already a shortage of water and then these projects get approved. He noted that the area north of Galena Rd. was zoned differently in 2007 when it was slated to become a Del Webb community. It did not come to fruition due to the recession. Keith Landovitz: He and wife live on Ashe Rd. west of the project. He spoke of mitigations and said he is not in a subdivision, but in residential area. He commended all the work the city has done for this project in setting up standards for data center projects and he urged the city to do more of the planning and design upfront. He briefly discussed Comprehensive Plans in place for nearby municipalities in 2018. He believes the area north of Galena is transitional and should be treated with more care regarding eco-systems and people living in the area, regardless if they are incorporated, should be included in the thought process. He disapproves of building from west to east and feels the unincorporated areas are treated differently than the citizens. He thinks it is more equitable to build from the center out. Mr. Olson responded and said all amendments to the code are incorporated into Projects Cardinal and Steel and are a result of previous projects where there were no standards in place. This concluded most public comment. Mr. Funkhouser noted that the other agenda items will not be discussed. Introductions of all meeting attendees and committee members were made. Developer Project Overview: Mr. Silverman, representing, Pioneer Development, said they will hold a meeting with surrounding community members. He gave a presentation and told about Pioneer which is a development company that entitles land for data center end users. Mr. McCarron will be instrumental in helping secure end users. ComEd approval must be received along with knowledge there is ample power to the area. ComEd will require developers to make infrastructure improvements to support electricity to the area. Page 4 of 5 Mr. Silverman said this project is on 1,037 acres and there are 305 +/- parcels to the west not annexed to the city. Pioneer Development wishes to do so with M-2 zoning and a PUD. They are requesting deviations from the ordinance similar to that of Cyrus 1. They will have 7 storm water basins and 6 water tanks south of Galena that perhaps the city can use as well. Berms will be in place to minimize impact on residential areas and there will be secure gates in place. There are 14 phases of development and buildings will be built as needed, not on a spec basis. There is 17 million sq. ft. possible providing many construction jobs and high paying jobs when finished. The water impact is being studied and nearly waterless cooling centers are desired. They are working with city staff on an Annexation Agreement, PUD and utility coordination. He noted this property would have been developed into1,600 homes previously. A great amount of tax revenue will be received. Krysti Barksdale-Noble Comments: She noted the petitioner is requesting annexation of 305 acres of unincorporated land, rezoning and a Preliminary Plan. The current residential zoning would be requested to be M-2 zoning. To permit the PUD land use, there is a requirement the developers have to meet at least 1 modification standard and provide benefit to the city. The Petitioner has identified 2 which meet city standards and demonstrate a greater benefit to the regional utility improvements and funding or construction of public roads. PUD Plan: The developer will do 14 phases--1 stormwater and 1 building per phase and the builder anticipates a 10 year buildout. Thirteen deviations/variances have been identified. They include internal building setbacks, permitted uses and a lock that is not subject to any further regulations for 10 years. Also, maximum building height of 70 feet inclusive of rooftop mechanical, when within 1,500 feet of residences, reduction in parking spaces, EV charging station reductions for a “fee in lieu of”. The petitioner is also requesting relief from vehicle access, relief from pedestrian circulation—they will provide a 10 foot wide walking path, reduction to one off street loading space per building. Some deviations are being requested for the parking area and staff is OK with that. Petitioner is seeking deviations from landscaping being requested in parking area which staff approves. A transition buffer 100 feet wide will surround the data center campus. Staff requests an 8 foot berm regardless of incorporation status. Mechanical Screening was also discussed as well as mitigation for backup generators and chillers. Petitioner will work with the sound engineer. Deviations were requested for all lots fronting on the roadway. Appearance Standards: Developer was asked to revise building elevations for a different look and architectural interest, dynamic color palette, visual interest. Staff is looking for highest aesthetic standards for visible portions of building. Street Designs: The UDO has standards for street designs which only apply to public dedicated roadways. The internal roads will not be dedicated and staff is OK with this deviation. Fencing: the Petitioner requested to install a 10 foot tall fence, while the ordinance usually allows an 8 foot fence. Staff supports. Additional recommendations: Staff asked for traffic management during construction, noise studies for pre-construction, during construction, at full buildout and annually. Hours and days for operational testing were presented. Testing of generators takes 2 minutes each. Emergency operations plans and procedures were requested and the petitioner will allow the fire department and police department to conduct a drill prior to occupancy to learn building layout. Contact info will be provided and given to KenCom. Page 5 of 5 The Comprehensive Plan was done in 2016. Ms. Emily Anderson asked if the rural aesthetic would be removed from the plan. Ms. Noble said the aesthetic would not be removed. Mr. Weiler asked if the 100 foot buffer includes detention, which it could. Ms. Noble said the second component with the PUD is the development agreement. It will be a separate agreement and addresses infrastructure funding. Community Meeting Requirement: The city encourages the developer to reach out to the public due to the scale and intensity of the projects. They should meet with nearby developments, residential and businesses and the meeting should occur before the June 11 PZC meeting and the June 10 annexation hearing at City Council. Other Comments: Mr. Bryan asked for clarification on Cyrus 1 and also asked about other roads- -Galena, Baseline, etc. near Project Steel. Ms. Noble said the city engineer has done a review and any road that the development touches will need to be brought to city standards. The entrance locations are still up for discussion. Mr. Bryan also asked when the noise study will be done. Mr. Olson provided the various times and he said a noise study done now will be different than when Rt. 47 is improved. A baseline will be established and the noise cannot exceed the code levels of 50-60 decibels. Mr. Bryan asked about the penalty. There would be fees and possibly the court system. Enforcement would come through work stoppages. Ms. Anderson asked that a health study with tonal levels be done. Ms. Noble said the sound engineer has already done studies on tonal noise and an explanation of tonal effects and preliminary responses will be provided. Alderman Koch asked if the land will be farmed until construction and if utilities will be buried. The farming will continue and ComEd will decide if lines are buried. Alderman Funkhouser had several comments. He was not in favor of the zero feet setbacks, saying that all sides are front yards. Ms. Noble noted there is a 500 foot building separation from residential. Regarding landscaping, he said plantings should be encouraged for the interior to help with mitigation for heat, noise and aesthetics. He also said he would like to see an undulating berm rather than a straight one. He would also like ground screening for buildings and said that louvered masonry panels reduce sound. Ms. Noble indicated that staff recommends mechanical equipment be enclosed by solid barriers. Acreage outside of the fences may be used for prairie plantings, said Mr. McCarron. Next Steps: June 10: Public Hearing at City Council for annexation, June 11: Public Hearing at PZC, notices will be sent There was no further business and the meeting adjourned at 8:08 pm. Minutes respectfully submitted by Marlys Young, Minute Taker