Planning Commission

PLANNING COMMISSION MINUTES November 4, 2021 @ 5:30 p.m. The Planning Commission held a meeting on Thursday November 4, 2021 at 5:30 p.m. in City Hall Council Chambers. Commissioners Present Chairman Wendell Miller Secretary Justin Cothren Vice-Chairman Jacimore Luke Duffield Larry Smith Shirley Hatley Cheryl Monfee Commissioners Absent Cody Black John Choate Justin Keller (City Council Liason) Visitors Present: City Attorney Trey Smith, City Planner Sara Jondahl, Planner I Victoria Marchant, Flood Manager Ben Gray, Lula Harmon, Tim Debey, Stephen Bailey, and Paula Byrum Welcome Visitors The First Order of Business is a request to review and approve the minutes of the Planning Commission Meeting October 7, 2021. Commissioner Smith made the motion to approve the minutes as written. The motion was seconded by Commissioner Hatley and passed unanimously. The Second Order of Business is a Special Use Permit to allow an Industrial Use Not Listed (Bitcoin Mining Facility) in a M-1 zone, located in the 3600 Block of East 6th Street. Submitted by Barrett & Associates on behalf of Arkansas Valley Alliance for Economic Development Inc. (SPUP-1021-000143) City Planner Jondahl stated the application was for Peacock Investments Bitcoin Mining Special Use Permit. She stated that the existing conditions were that this was an undeveloped vacant parcel, ten acres in size which was adjacent to the Entergy Substation. This property was directly south of a residential subdivision. The property was zoned M-1 along with surrounding properties with the exception of the subdivision to the north, which was zoned R-2. City Planner Jondahl stated that during the application review it was determined this would be classified as an “Industrial Use Not Listed” which was permitted in the M-1 Zone by Special Use Permit. City Planner Jondahl stated that the property was currently defined by metes and bounds and as a result, an Incidental Subdivision would be required to define the property as a legal lot. Commercial Building Design has requirements for the façade of the building. She stated that the application showed this was not a typical building but rather thirteen 10’x40’ metal structures. The development was proposing to locate a fence behind an earthen berm with landscaping approximately 150 feet south of the ROW and adjacent to the Entergy Substation. The landscaping and earthen berm would offset the use, shielding the adjacent residential neighborhood and coupled with the adjacent substation it was in visual harmony in this vicinity. City Planner Jondahl stated that parking in Industrial Uses is at the discretion for the applicant to provide for the Planning Commission to approve and that the parking proposed was for 3 parking spaces (1 must be ADA accessible) and hard surface only connecting the driveway and the parking spaces. Staff recommended the application be forwarded to City Council for approval with the following conditions: 1. Submit for and obtain a Large Scale Development Approval; and 2. Submit for and obtain approval of an incidental subdivision. As a result of the findings below: 1. The applicant demonstrates compliance with the regulations within Article 2.10 of the Russellville Zoning Code; and 2. The proposed use is in line with the adjacent uses within the district; and 3. Due to the limited traffic proposed current traffic routes are constructed in such a way to handle the traffic from the business. Commissioner Smith asked City Planner Jondahl what Bitcoin mining was. City Planner Jondahl stated that Bitcoin was cryptocurrency and it was mining through an internet process. She explained that it was not a physical mining like strip mining. Commissioner Smith asked what would go on at this facility. City Planner Jondahl stated a lot of computer functions. Chairman Miller stated that from what he understood it was like an ATM. City Planner Jondahl stated that it was not an ATM and people would not be going to the site other than the one employee the company would hire to service the computers. Chairman Miller stated that the way he understood the Bitcoin ATMs was that they had them setup at convenience stores, however this proposed development was going to have multiple units. Chairman Miller asked if there would be money at the location. City Planner Jondahl stated that the 10’x40’ structures would be full of computers that would be running programs to mine Bitcoin. Stephen Bailey stated that he owned a small Bitcoin mining company out of his home. He stated that the site would just be a data center and that each container would be full of computers which would run the Bitcoin network. He stated that the computers and network would be used to operate transactions. Mr. Bailey stated that the low employee count was due to the fact that the computers and network would just be running there and it would just need periodic checking on. Commissioner Smith asked if this was a large company that was starting this project. Stephen Bailey stated that he was not affiliated with the company. He stated that while Bitcoin was a cryptocurrency it was also a verification and ledger system. Chairman Miller asked if Bitcoin was what people referred to cryptocurrency as. Stephen Bailey stated that Bitcoin was the largest and first cryptocurrency and many people associated the whole cryptocurrency system with Bitcoin. He stated that most cryptocurrency is not as much a currency as it is a software technology. Mr. Bailey stated that Bitcoin was a ledger system for peer-to-peer currency of value. Chairman Miller asked if the buildings would not have many people coming to them, they would just house the computers. Mr. Bailey confirmed that they would just be housing the data centers. Commissioner Smith asked if the site would have fire protection and asked if the fire department had reviewed the plans. Mr. Bailey stated that although he was not affiliated with the company putting the center in, he would assume it would be up to code with the amount of investment they would be putting into it. Additionally he stated that there would be almost no flammable items in the buildings. Tim Debey stated that he lived across the street from the proposed development. He said he had no concerns about the Bitcoin operation moving in and stated that it would probably be good for the community. Mr. Debey stated that he did have some concerns about how well the facility would be shielded visually from the residential neighborhood. He stated that from the plans he saw the earthen berm with holly bushes but he did not see any height associated with that. Mr. Debey said that he would like for the Planning Commission to add a condition that the berm be high enough so that the residential neighborhood would not be able to see the units. He stated that for example the berm may need to be 8’ high and the bushes be an additional 4’ in height. In addition Mr. Debey stated that he thought there needed to be a requirement that they maintain the earthen berm and bushes as well. City Planner Jondahl stated that the applicant would have to go through the Planning Commission the following month to get approval of a Large Scale Development and at that time they would provide elevations and go into greater detail of what the site would look like. She stated that at that time staff would go into greater review on the site as well. Commissioner Smith stated that he did not see a fence around the site plan and asked if there was one proposed. City Planner Jondahl stated that inside the earthen berm there was a proposed chain link fence with screening. Councilman Keller stated that he had to learn a lot about Bitcoin mining to understand the application and he stated that in his research an issue that kept coming up was the noise associated. City Planner Jondahl stated that staff had asked the applicants about the noise and said that was likely why they were proposing the earthen berm and shrubbery in addition to moving it 150’ back from the property line. She stated the noise was one of the first comments by staff to the applicant because staff wanted to ensure that the residential neighborhood was not inundated with additional noise as it was relatively quiet in that neighborhood. Councilman Keller stated that he had read that one of the units was as loud or louder than a jet engine and there was proposed to be 13 of them. He stated that from what he had seen from other municipalities that had Bitcoin mining facilities, the biggest issue they were having was the noise. City Planner Jondahl stated that this was a concern of hers after she had gotten complaints from residents neighboring a school who had complained about the air conditioning units causing noise. She stated that the noise concern was something she had asked the applicant about and they had indicated that it was relatively quiet. City Planner Jondahl reiterated that the applicants would be going through the Large Scale Development process and there would be greater review of the application at that time if the Special Use Permit was approved. Commissioner Smith stated that the applicant needed to present a decibel number. Chairman Miller stated that the ones he had seen were in gas stations and he did not believe they would be located in a public place if they created so much noise. City Planner Jondahl stated that this site was adjacent to a residential subdivision so staff could let the applicant know that concerns that came up with the Commission were regarding the decibel level. She stated that the Commission could address that information with the Large Scale Development application or they could table the Special Use Permit and request additional information. City Planner Jondahl stated that she did know the applicant was under contract to purchase the property through the Alliance. Commissioner Miller asked if the questions that were coming up could be addressed through the Large Scale Development. City Planner Jondahl confirmed that they could be addressed in that review. Commissioner Hatley stated that the plan showed that thirteen units would be on the lot; she asked if this would be the maximum number of units that would be there. City Planner Jondahl said that was the maximum number of units they had currently proposed and that was what she believed they would be applying for with the Large Scale Development. She stated that if it changed from thirteen units it would have to go back through another Large Scale Development approval to expand the operation. Councilman Keller asked if staff knew the exact type of machine the applicants were proposing so that they would be able to look up the machine and get specifics on how loud it would be. He stated that he had tried to Google the name that was on the top of the picture of the units that the applicant had submitted and was unable to find anything. City Planner Jondahl stated that staff could request that as part of the Large Scale Development. Chairman Miller echoed City Planner Jondahl stating that the Large Scale Development process would vet a lot of the questions Commissioners were having and this was just one of the first phases. City Planner Jondahl confirmed that the Special Use Permit would just give them permission to move forward with their application for their Large Scale Development. Hunter Mays with Barrett and Associates addressed the question regarding the earthen berm. He stated that the applicant was proposing a 4’ tall berm with holly bushes on top which would eliminate most of the sound. Mr. Mays stated that any other questions the Commission had, he would take the questions back to the owner and ensure they were addressed in the Large Scale Development. Commissioner Duffield asked if there was not already a Bitcoin mining operation on Tyler Road. City Planner Jondahl confirmed that there were two structures along Tyler Road that had been used for Bitcoin mining previously but those structures were no longer in use and they had been vacated. Commissioner Duffield asked if they had been put into use. City Planner Jondahl stated that she believed they were put into use at one point but had been vacated and were not in operation any longer.  Commissioner Duffield made the motion to approve the item as presented by staff. The motion was seconded by Commissioner Monfee and passed unanimously. The Third Order of Business is a Large Scale Development located at 1303 SR 124. Submitted by B&L Mini Storage. (LSDV-1021-000139) City Planner Jondahl stated that this was an application for a large scale development for Harmon Mini Storage located at 1303 SR 124. She stated that the existing conditions were that the property was zoned C-2 Highway Commercial and the property was located in the Weir Road Development District. City Planner Jondahl stated that Self Storage (Mini Storage) was permitted by Special Use Permit and one had been issued to this location in 2011. She stated that five buildings were built as a result of a Large Scale Development approved in 2011. This area included a variety of uses including both existing businesses and single family homes. City Planner Jondahl stated that as a result of staff review it was discovered that the property was originally platted as a residential subdivision in December of 1950. The existing 5 mini storage structures were built after the approval was given in 2011. The plat was not identified at that time. She stated that Commercial Building Design was being proposed and should be met in coordination with the existing storage building structures that were already on site. City Planner Jondahl said no sidewalks were required since the improvements did not meet the 50% threshold. Additionally she stated that no actual parking spaces were proposed, however sufficient hard surface already existed to accommodate any parking for facility use. City Planner Jondahl then showed photos of the mini storage facility and showed that at the time of the meeting they had begun construction on the sixth unit as they had been granted a conditional building permit. Staff recommended approval with the following condition: 1. Complete an Incidental Subdivision. As a result of the findings below: 1. The applicant demonstrates compliance with the regulations within Article 2.10 of the Russellville Zoning Code; and 2. The applicant demonstrates compliance with the regulations within section 7 of the Land Subdivision Development Code. Lula Harmon stated that she had the plat showing the six buildings from Kurt Jones and her building permit from the City. She stated that the sixth building was almost complete; she was just awaiting the doors, but that the sixth building looked like the other buildings. Commissioner Cothren made the motion to approve the item as presented by staff. The motion was seconded by Commissioner Hatley and passed unanimously. Meeting adjourned. _________________________ Chairman Wendell Miller