WIXOM — A developer of a proposed data center in Wixom is now suing the western Oakland County for enacting a data center moratorium, though city officials are still moving forward with more restrictions for the computing facilities that have stirred backlash in communities across the region.
Wixom council members on Aug. 26 voted to pass data center restrictions in their zoning ordinance, the main planning tool communities use for development. There are now specific requirements for setbacks, sound studies and water usage related to data center projects.
They then passed a resolution that the restrictions would go into effect no later than Sept. 6, thus ending the city's six-month moratorium about two and a half weeks before its original expiration date.
Their zoning changes and restrictions were made more than two weeks after developer Wixom Industrial One, LLC filed a federal lawsuit in U.S. District Court in Detroit against the city over the moratorium. Wixom One operates under the Missouri-based Sansone Group.
Wixom One's lawsuit claims the city's moratorium, approved earlier this year, is "illegal" and "intended to permanently kill" its Midwinds Park data center. The lawsuit claims the city worked with Wixom One on the development at 30625 S. Wixom Road but hampered these efforts as they moved forward with data center restrictions.
"Even after the City and Council began their hostile campaign, Wixom One spent months trying to work with the City in good faith to reasonably refine the proposed ordinance text amendments, but the City has instead proposed layer upon layer of impractical and discriminatory standards that are far more stringent than those applied to other similarly situated industrial uses and are effectively impossible to meet," the lawsuit reads.
According to the lawsuit, Wixom One has "spent tens of thousands of dollars" developing Midwinds Park, which will have three buildings with a combined total of 519,400 square feet to house data processing facilities if approved. The developer contends data processing centers are permitted in the city's light industrial district.
Despite the moratorium being in place, Wixom One submitted an application for site plan review on June 2. Council members rejected the developer's waiver request on July 14.
Wixom One claims in the lawsuit that Midwinds Park would limit noise and water use, would not be near residential areas and would be much smaller than hyperscale data centers.
"The city and council have now made it clear that they will not even consider all of Wixom One's careful planning and design strategies and are instead barreling forward towards predetermined outcomes that are based on misinformation, public pressure, and purely political considerations," the lawsuit reads.
Wixom One asks in the lawsuit for a judge to determine that its application for site plan review meets city requirements and allow the project to move forward. Attorneys representing the developer did not respond to requests for comment.
Even as the lawsuit hangs over the city, Wixom city council members on Aug. 26 amended their data center restrictions to include a setback of 1,500 feet from residential areas, parks and K-12 schools. They also prohibited data centers in their city from using well water and required developers to conduct a 48-hour sound study between Monday and Friday as part of their application.
The defensibility of the setback was a sticking point among council members. Three members on the seven-member council wanted the setback to be half a mile.
"If we want to change and make it smaller later, we can do that. But I think we need to be coming out as restrictive as possible," said Councilwoman Veronica Simmons.
In defense of the 1,500-foot setback, Councilmember Peter Behrmann noted that other communities like Milford have enacted the same distance.
"That's not saying that I wouldn't like to see a half mile," said Behrmann. "I just think it's going to be an uphill battle, and I'd rather have a number we can stand behind and not risk losing."
Mayor Patrick Beagle, who also voted for the 1,500-foot setback, said defensibility of the restrictions against the lawsuit specifically is something that he has taken into consideration in finalizing the ordinance.
"We're hoping that when we go in front of the judge, he's going to look at things and say, 'There's no disadvantage. There's no penalties. They've got the ordinance in place,'" said Beagle.
Roughly 100 people attended the Aug. 26 meeting, with many residents calling on the city to fight Wixom One's lawsuit.
Resident Catherine Phillips said she would like there to be "teeth" behind why the restrictions were drafted the way they were so that it stands up against the lawsuit.
"I want them to fight and make the ordinance as strong as possible — be the leader in drafting the ordinance, not the follower," said Phillips, 70.
At the end of the meeting, Beagle thanked residents for showing up.
"In my 17 years up here, I've never had to deal with anything like this before. And I don't think any of us up here are really pleased, but our hands are tied, and I hope you guys understand that," said Beagle. "All we can do is make it the strongest ordinance that we can that will stick up in the court."
This article originally appeared on The Detroit News: Wixom moves forward with data center restrictions as lawsuit looms