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HomeMy WebLinkAbout05-14-2024 Study Session Summary Minutes MARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL STUDY SESSION 11555 W. Civic Center Drive, Marana, Arizona 85653 Second Floor Conference Center, May 14, 2024, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford,Council Member Jackie Craig, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler,Council Member SUMMARY MINUTES CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:03 PM and directed the Town Clerk to call the roll. Council Member Comerford was absent. All other Council Members were present, constituting a quorum. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Vice Mayor Post moved to approve the agenda as presented. Council Member Officer seconded the motion. Motion passed, 6-0. DISCUSSION/DIRECTION/POSSIBLE ACTION D1 Relating to Development; presentation, discussion, and possible direction regarding proposed amendments to Marana Town Code Title 17(Land Development)for the purpose of enacting reasonable zoning, design,operational,and other regulations for data centers (Jane Fairall) Council Study Session Meeting May 14,2024 Page 1 of 7 Town Clerk/Assistant Town Attorney David Udall noted for the record that a letter from the Tortolita Alliance had been submitted for the Council's consideration regarding this item. Copies of the letter were placed before the Council Members and a copy is on file with the Town Clerk's Office. Town Attorney Jane Fairall and Development Services Director Jason Angell presented on this item. A copy of the presentation slides is on file with the Town Clerk's Office. Please see the slides for details, including maps of proposed data center buffer zones. Clarifying questions were asked and answered during the presentation. Ms. Fairall introduced the item. She reminded the Council that data centers were a subject of discussion at the Council's special meeting/retreat in February. She said the Town currently does not have regulations relating to data centers and that she conducted research regarding appropriate regulations for the Town. She highlighted that several counties in Virginia have been rewriting their codes regarding data centers, and that the state has become a model for the proposed draft ordinance. Ms. Fairall emphasized that this meeting was a study session to seek the Council's input. Mr. Angell provided an overview of the draft data center regulations, which include: • A comprehensive definition of data centers • Zoning o Data centers allowed as a principal use only when approved by Council in a specific plan explicitly created for the purpose of data center development and adopted through the rezoning process o Accessory use data centers permitted only in industrial zoning districts, with limitations on the size and operation of the accessory use • Supplemental specific plan application requirements specific to data centers,including requirements to address electric,water, and other energy needs for the site • Noise attenuation, including requirements for noise studies to ensure noise levels generated by the data center are within acceptable levels • Site design standards addressing: o Building placement and orientation o Lighting o Setbacks o Generators o Screening of mechanical equipment and substations o Landscape buffers • Building design standards addressing: o Fencing o Massing and scale Council Study Session Meeting May 14,2024 Page 2 of 7 o Building height o Principal facades o Fenestration(the arrangement,proportioning,and design of windows and doors in a building) o Main building entryways o Exterior colors and materials For details regarding the draft regulations, please see the presentation slides. Mr. Angell also showed two maps in the presentation slides delineating possible buffer zones in which data centers would not be allowed and requested Council input regarding buffer zones. One map involved certain possible land areas surrounding Marana Road west of Interstate 10 and east of Luckett Road.The other map involved certain possible land areas surrounding Tangerine Road east of Interstate 10 and west of Dove Mountain Boulevard. Mr. Angell requested Council feedback at several points during his presentation, and Council Members provided input as follows: A. Specific Plan Application (Slide 7): 1. Should there be any other requirements? Mayor Honea recommended regulations prohibiting the use of municipal, potable water and that incoming data centers would need to purchase non-municipal water. He also said that if the Town could recharge the water after it is used in the data centers it would provide a huge advantage to the Town in the form of water recharge credits.He expressed concern regarding the amount of power used by the data centers likely requiring large overhead powerline infrastructure. Council Member Ziegler agreed with the concern about power. Council Member Officer recommended a requirement for a one-to-one slope on the inside of berms instead of a two-to-one slope for the landscape buffers in order to mitigate noise impacts. B. Buffer Zones (Slides 5 &6): 1. Does the Council like the concept of buffer zones? 2. Does the Council agree with the zones proposed in the two maps shown during the presentation? 3. What should be the buffer distance? Town Manager Terry Rozema highlighted that if the Council would like to have buffer zones, their purpose would be to signify that the designated buffer areas are clearly off limits. He said whether or not to have buffers, their size, and where to put Council Study Session Meeting May 14,2024 Page 3 of 7 them are all up to the Council. Mr.Angell said the buffers would protect areas needed for housing and jobs. Vice Mayor Post said he was not in favor of buffer zones. He felt they were unnecessary in light of the data centers being considered on a case-by-case basis by the Council. He expressed concern regarding data centers not being allowed along Marana Road with the power line project coming in along that road. He said the proximity of such a power line would be very important for data center development. He said putting a buffer around Marana Road also restricted access to irrigation water that could be used for cooling the data centers and said they would not be able to tap into irrigation water effectively along Tangerine Road. He said it was important for buffer zones to be in place closer to the Town Centre. Council Member Kai concurred with Vice Mayor Post regarding the buffer zone along Marana Road but thought it might be good to have a specific buffer around Uptown Marana and the Tangerine extension in that area. He said the stretch of Marana Road presented is too long of a stretch for a buffer. Regarding the Tangerine Road buffer, Council Member Kai said there is a lot of industrial along Tangerine Road, and that data center buffers did not make sense there. Council Member Ziegler said Marana Road is a big part of the Town and indicated data centers should not be built there. She also expressed disapproval of data centers being allowed in the Town as discussed below. Council Member Craig said she was in favor of buffer zones in places in which the Town needs housing, employment, or retail. She said she is in favor of the Tangerine Road buffer presented,but only just the quarter mile option.She also suggested Town staff look at the bottom of Twin Peaks Road as a potential buffer zone. She recommended a buffer from Sanders Road east along Marana Road to protect housing and jobs in that area. C. Accessory Use (Slide 9): 1. Should the percentage of the site that an accessory use data center can occupy be 10% as presented, or something else? Council Member Craig asked what would happen if a hospital uses a data center as an accessory use but stores data for a sister hospital.Vice Mayor Post said they would need to disclose that as part of the application process. Ms. Fairall agreed and said they would need to include that in their development plan. She said the goal would be to avoid allowing the leasing out of data storage space to third parties. Council Study Session Meeting May 14,2024 Page 4 of 7 D. Setbacks (Slide 11): 1. What are Council's thoughts on setbacks? Research conducted by staff show a range of 50-400 feet of minimum setback requirements. Vice Mayor Post said he didn't see any reason the minimum required setback should be less than 400 feet. Council Member Craig also said she was in favor of a 400-foot minimum setback to help mitigate noise impacts. E. Building Height (Slide 16): 1. Should the maximum allowable building height be 55 feet plus an additional ten feet for rooftop-mounted mechanical equipment as presented? Vice Mayor Post said he liked the proposed building design standards. He said he did not want data centers to look like a warehouse. During the presentation, the following discussions were also held: Council Member Ziegler said she did not realize data centers were interested in Marana and felt she had been left out of conversations that other Council Members may have had. Mr. Rozema said this was spoken about at the Council's special meeting/retreat held in February.Council Member Ziegler disagreed.Vice Mayor Post said they were discussed at the retreat and that Mr. Rozema had sent an email update regarding data centers around a month ago. Mayor Honea said the reason the first presenters spoke to the Council at the retreat was because data center interest was being shown in Marana. Council Member Ziegler expressed concern that she was continuing to be blindsided on issues. Council Member Ziegler praised the regulations presented by Ms. Fairall and Mr. Angell and said she thought they were a good idea, but she did not think data centers should be allowed in the Town because of the impacts on the Town and its residents and the lack of benefits to the Town. Vice Mayor Post complemented Town staff for the work done on the proposed regulations. He said the Town has a lot of high-dollar transportation projects that are needed and said that money coming in from the construction of data centers could provide the money needed for these projects. He said that, unlike Chandler, the Town is still growing in all directions and that it can select where data centers go. He recommended taking advantage of the amount of land in the Town, the irrigation water, and the power line coming in along Marana Road to incentivize data center development and use the money from data centers to fund major Town projects. He said data centers would benefit the Towri s school districts immensely through the amount of property tax Council Study Session Meeting May 14,2024 Page 5 of 7 coming in. He said he was also in favor of finding ways to secure a perpetual source of ongoing revenue from data centers, so they contribute back to the community. Council Member Ziegler disagreed with Vice Mayor Post and said data centers were not the answer to fund the Towri s projects and suggested the Town could use money from its reserve fund. She questioned how much money data centers would actually bring into the Town and said it likely was not as much as anticipated because of the tax breaks they receive. She said they do not provide ongoing revenue for the Town and reiterated that she does not think they should be allowed in the Town because they do not benefit the community and will cause problems for residents. She said Mesa receives water credits from data centers and that she was open to receiving additional information about the benefits and funds data centers could bring. Council Member Kai agreed with Vice Mayor Post that the Town needed to be proactive in finding ways to receive ongoing revenue from data centers. Council Member Ziegler was in agreement with this proposition as well. Council Member Officer agreed with Vice Mayor Post that data center property tax revenues would benefit the Marana community by increasing ongoing revenues to the school district and fire districts. Council Member Ziegler questioned whether data centers were the way to accomplish that. Council Member Craig complemented Town staff on the research and thoughtful approach to regulating data centers. She said the two biggest problems she heard from Chandler at the retreat were related to noise impacts and lack of jobs and made recommendations related to setbacks and buffers as referenced above. Mayor Honea requested additional information regarding the tax exemptions and regarding whether a data center would or would not be within certain fire districts. Council Member Ziegler requested more information regarding water use, credits, and whether and to what extent the irrigation district can serve water. EXECUTIVE SESSIONS Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session, which will not be open to the public, to discuss certain matters. El Executive Session pursuant to A.R.S. §38-431.03 (A), Council may ask for discussion or consideration, or consultation with designated Town representatives, or consultation for legal advice with the Town Attorney, concerning any matter listed on this agenda for any of the reasons listed in A.R.S. §38-431.03 (A). Council Study Session Meeting May 14,2024 Page 6 of 7 FUTURE AGENDA ITEMS Notwithstanding the Mayor's discretion regarding the items to be placed on the agenda, if three or more Council members request that an item be placed on the agenda, it must be placed on the agenda for the second regular Town Council meeting after the date of the request, pursuant to Marana Town Code Section 2-4-2(B). Mayor Honea asked for future agenda items. There were no future agenda items requested. ADJOURNMENT Mayor Honea asked for a motion to adjourn the meeting. Vice Mayor Post moved to adjourn the meeting. Motion passed, 6-0. Meeting adjourned at 7:54 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council Study Session Meeting held on May 14, 2024. I further certify that a quorum was present. David L. Udall, Town Clerk zp6e,, MARANA AZ ESTABLISHED 1977 Council Study Session Meeting May 14,2024 Page 7 of 7