Planning Commission Regular Meeting

WEST VALLEY CITY PLANNING COMMISSION PUBLIC HEARING MINUTES WEDNESDAY, AUGUST 28, 2024 at 4:00 PM The meeting was called to order at 4:00 p.m. by Chair Lovato in the City Council Chambers at West Valley City Hall 3600 Constitution Boulevard, West Valley City, UT 84119, and using Zoom at https://us06web.zoom.us/j/86528756733 WEST VALLEY CITY PLANNING COMMISSION MEMBERS Mathew Lovato, Cindy Wood, Harold Woodruff, Darrick Porter, and Nancy Drozdek and Renee Layton ABSENT Martell Winters WEST VALLEY CITY PLANNING DIVISION STAFF Steve Pastorik, Brock Anderson, Jody Knapp and Julie Davis WEST VALLEY CITY LEGAL DEPARTMENT Brandon Hill, Deputy City Attorney AUDIENCE There was one attendee in the audience and zero online. ZONE TEXT CHANGE APPLICATION Application #: ZT-9-2024 Applicant: Wasatch Commercial Developers, LLC Request: A zone text change to Sections 7-1-103 and 7-6-301 of the zoning ordinance to add a definition for the term “data center” and to allow data centers as a permitted use in the LI (Light Industrial) and M (Manufacturing) zones and as a permitted or conditional use in the BRP (Business/Research Park) zone. Craig Martin with Wasatch Commercial Developers, LLC is proposing an ordinance amendment to change Sections 7-1-103 and 7-6-301 to add a definition for the term “data center” and to allow data centers as a permitted use in the LI (Light Industrial) and M (Manufacturing) zones and as a permitted or conditional use in the BRP (Business/Research Park) zone. Since data centers aren’t currently addressed in the City’s zoning ordinance, staff has been considering them as warehouses. No more than 60 percent of the square footage of buildings on a BRP zoned lot can be used as a warehouse or light industrial. The applicant, Wasatch Commercial Developers, is looking to build a data center in Lake Park Corporate Center, which is zoned BRP. According to the applicant, the 60% restriction that staff currently applies to data centers makes the investment in a data center non-viable. Page 1 of 4 The applicant’s proposed data center definition for Section 7-1-103 is: “An establishment engaging in the storage, management, processing, and/or transmission of digital data, and housing computer and/or network equipment, systems, servers, appliances and other associated components related to digital data operations.” As pointed out earlier, the applicant is also proposing that data centers would be a permitted use in the LI and M zones and a permitted or conditional use in the BRP zone. For the BRP zone, staff would recommend that data centers be a conditional use as they tend to have backup generators that may need screening. The applicant’s justification for the proposed changes is as follows: “Data centers are not a ‘typical warehouse’ type. In order to make them financially successful, the majority of the square footage use needs to be dedicated to the core business. Limiting to the 60% rule would not allow us to attract users, nor allow Wasatch to make an investment. Data Centers are a growing requirement across multiple business sectors worldwide. Lake Park is a very attractive location for this type of business, especially with Lake Park being in a Qualified Opportunity Zone. Wasatch would work closely with WVC to assure that this Data Center would be aesthetically pleasing, not looking like a typical ‘industrial’ Building. Like WVC, Wasatch does not want our development to look like, or to be confused for a distribution / heavy industrial development. Another thing to note is that Data Centers on the whole are very low impact to the surrounding area. There are very few employees (5-10), thus very low traffic and impact to the local area, as well to WVC services (Fire, Police, Medical, etc.).” The Institute of Transportation Engineers’ (ITE) trip generation data shows that data centers generate 0.99 trips per 1,000 square feet of building. By comparison, warehouses generate 1.71 trips per 1,000 square feet and general light industrial generates 4.87 trips per 1,000 square feet. The 60% restriction on warehouse and light industrial space in the BRP zone was put in place in 2022 at the same time the City rezoned property within Lake Park Corporate Center from M to BRP. The stated reasons for this restriction were:  The two main areas of the City with BRP zoning – Lake Park Corporate Centre and Metro Business Park – are predominantly office uses. The proposed use restrictions will help prevent these areas from becoming predominantly industrial.  Given the large amount of property zoned to allow industrial uses, there are plenty of opportunities for exclusively industrial use. Adding more use restrictions to the BRP zone will further differentiate it from other zones. Staff Alternatives: 1. Approval. The ordinance change should be approved with data centers being allowed as a Page 2 of 4  conditional use in the BRP zone. 2. Continuance. This application should be continued for reasons determined during the public hearing. 3. Denial. Data centers should be subject to the same 60% restriction as warehouses. Discussion: Steve Pastorik presented. Craig Martin, representing Wasatch, located at 299 S. Main St., Salt Lake City, was present. He added that Wasatch owns a significant amount of property in the Lake Park area, one of which is just to the south of the lake. That parcel of the land is slated to be a Research and Development Park with 5 buildings roughly 88,000 to 95,000 square feet per building, one of which they are looking to build a data center in because businesses that are attracted to that area have a significant need for cloud storage or data storage. Some of those entities have facilities that are older, traditional type data centers that don't have the processing power and speed that they need. A lot of the entities that they are looking at putting into this area are medical in nature and when the companies are medicine and bioscience based there needs to be a lot of processing power to help determine cures the companies develop for various diseases. The issue that Wasatch had with the 60/40 warehouse is that when you lease this amount of space in a building of that size, 40% of the building doesn't generate any revenue. So, trying to build a building of that size and only be able to generate revenue from 60% of it just doesn't make financial business sense. That's the main reason why they are trying to make that facility upwards of 90 to 95% data center. It's very minimal impact to the to the city and will generate a significant amount of property tax in terms of the amount the municipality can generate versus the county because of the value that will be placed on that building. Craig goes on to say that Wasatch has been proven in the past to be a very conservationist type entity. They utilize a lot of solar and want to conserve water. There are new technologies with data centers that use very high-pressure, high-targeted air to help cool the servers in terms of using less water. There's also immersive cooling where servers are placed in a waterproof box and submerged in water. Ambient air and cooling have different properties in terms of holding on to heat and level of chill. There is waste heat that needs to be removed, so there will be a certain amount of water that will have to be involved, but a lot less as opposed to traditional data centers. Craig feels Wasatch being able to generate more revenue over the course of the entire building is much more attractive to them in terms of bringing in high-end clients and lessees into Lake Park. Steve Pastorik asked Craig if Wasatch was planning on subdividing with each building be its own parcel. Craig answered that they talked about subdividing them and plat them individually or having the entire development be its own parcel, but they haven't decided yet. They are leaning toward the former instead of the latter and would take any advice or any direction from Steve on how he’d like to see that work out. Motion: Commissioner Wood motioned to approve ZT-9-2024. Commissioner Porter seconded. Vote: Motion passed unanimously. PLANNING COMMISSION BUSINESS Page 3 of 4 Motion: Commissioner Wood motioned to approve Minutes from July 10, 2024, August 7, 2024, and August 14, 2024. Commissioner Porter seconded. Vote: Motion passed unanimously. There being no further business the meeting was adjourned at 4:11 pm. Respectfully submitted, Julie Davis Julie Davis, Admin Assistant West Valley City does not discriminate on the basis of race, color, national origin, sex, religion, age, sexual orientation or disability in employment or the provision of services. If you are planning to attend this public meeting and, due to a disability, need assistance in understanding or participating in the meeting, please notify the City eight or more hours in advance of the meeting. We will try to provide whatever assistance may be required. The person to contact for assistance is Julie Davis, 801- 963-3306. Page 4 of 4