Newark gives Data Center conditional zoning OK

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Data Centers 1The City of Newark issued  a conditional zoning verification to The Data Centers, LLC proposal to build a combined heat and power plant (“CHP”) for the  $1.1 billion 900,000 square foot data center on the STAR campus of the University of Delaware.

Click here for a copy of the decision.

The decision could result in litigation from opponents who are bitterly opposed to the project at the former site of the Chrysler plant. The decision had been widely expected, given the former use of the site and the steps that the city seemed to be prepared to take to answer concerns of critics.

Opponents, under the Umbrella of No Newark Power Plant,  held a candlelight vigil outside the Municipal Building earlier in the week after news that a decision was coming.

Few of those involved in the effort have publicly  expressed interest in compromises, assurances or negotiations. That would suggest a legal battle, demonstrations and remarks at Newark City Council meetings,  even as the permitting process goes forward under the Delaware Department of Natural Resources and Environmental Control.

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The No Newark Power Plant website suggested the following might be the basis of one  challenge in this posting:

“NRAPP also questions the validity of the zoning verification decision after it was discovered that the certification of data requested by the city may have been improperly certified by M. Richard Beringer, PE. of Duffield Associates, TDC’s engineering firm. NRAPP requested that the City of Newark delay any verification of zoning until this matter was investigated.  The group received no response to their request.

Amy Roe, a leader in the no power plant effort told the Newark Post  no decision has been made on a future course of action. Roe narrowly lost a special election for mayor in what was viewed in some circles as a referendum on the Data Centers project.

Environmental groups has taken a  litigation-driven stance regarding a crude oil rail facility operated at the Delaware City Refinery.

Data Centers opponents have pointed to the fact that the plant burns natural gas and would use waste heat from banks of computer servers in what is known a co-generation.

The added generation, combined with other natural gas-fired power plants, could lead to the retirement of more coal-fired power plants in the region.

Construction of the project could generate thousands of construction jobs and hundreds of permanent positions.

 The conditional zoning verification from the city addressed  whether the proposed CHP is accessory to the data center, and holds that the plant may be built subject to certain limitations. The conditional zoning verification is expressly conditioned upon The Data Centers, LLC’s ability to meet and adhere to numerous standards, guidelines and limitations – and limits power sales to 30% of the need of the project, according to a city  statement.

The letter also makes it clear that the City reserves the right to change conditions and limitations on the project if the data submitted changes at any point in the process, the city statement added. 

Director of Planning and Development Maureen Feeney Roser said “the decision was a difficult one because of the weighty and complex matters involved.  The City has been inundated with information on both sides of the issue, and we have benefited from the comprehensive and informed review of the matter by the Newark community.  In the end, as with any zoning verification, the decision boiled down to the information presented to the city and how it corresponds to the zoning code and, in this case, the code’s definition of accessory use.”

The University of Delaware has agreed to let projects on the campus be governed under the zoning code, even though it is unclear that it has to do so under its broad powers that are similar to those of a municipality.

Gene Kern, President of The Data Centers, L.L.C., issued the following statement:”I appreciate the hard work performed by the Newark City Council, the mayor, and the staff of the City of Newark. The Data Centers, L.L.C., is excited to be part of a community with great civic involvement and a very active public. We look forward to continuing our work with the city, the University of Delaware, the State of Delaware, and the public to build a state-of-the-art data center, create new jobs, and attract more high-quality companies and high-paying jobs to the area.”

 

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1 COMMENT

  1. This is truly an historic decision that will set a new direction and vision for the data center community and other energy intensive technology industries. Now, hopefully, we are on our way to becoming independent of our aging grid and can provide surplus power to our vulnerable communities. And, we can use cleaner fuels that replace old coal-fired power plants, and use local US natural gas resources instead of oil shipped here from unstable countries overseas. The news should be received as a win-win decision for the US, Delaware and Newark alike. Congratulations to The Data Centers.

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