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Oregon city council votes on data center extension, although confusion remains

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Oregon city council members voted 3-2 with one abstention at a regular council meeting on Feb. 9 in favor of granting a six-month extension to potential $2 billion data center developer Will Turner of Capacity LLC.

Just prior to the vote, however, council voted in favor of removing the emergency portion of the proposed ordinance. Following the 3-2 vote on the actual ordinance, it was thought based on past legislation approvals that four votes were needed for the approval of a non-emergency measure.

Thus, it was said at the meeting that the proposed ordinance and extension failed.

However, on Feb. 11, the city announced on its Facebook page that administration is seeking an opinion from the Ohio Attorney General's office as to whether Ordinance No. 20-2026 did pass as a non-emergency measure at the council meeting.

With the abstention due to a conflict of interest, it’s possible the ordinance did pass. The city said it will make a public announcement once the attorney general’s opinion is given.

The three council members who voted in favor of the ordinance were Paul Drake, Kathleen Pollauf, and Steve Hornyak. Beth Ackerman and Paul Gibbs voted against the extension, while Dennis Walendzak abstained. Dave Andrus was not at the meeting.

Prior to the vote, a little more than 20 people took the podium to speak on the proposed data center project. A majority of those who spoke, 13 of them, spoke either in favor of the data center or in favor of granting the extension. Several others spoke out against it, and others asked questions.

One resident, Paul Slygh, spoke in favor of the extension. He said that he doesn’t feel that the local organization against the data center, although well-organized, represents the thoughts of Oregon residents.

“I do not believe they represent the majority of people in Oregon,” he said. “Oregon has a population of about 20,000 people. According to their group, they're somewhere well under 1,000. You look around Oregon, you'll see that there are a few signs saying they're opposed to the data center. However, you'll find most yards have nothing that would indicate as such. I think the people of Oregon have made it very clear that they are in favor of this. Will it have negative impacts? Of course it will. I live on Wynn Road myself. It will be an inconvenience to have the traffic going by, but it is what we all need to do for progress. It will always be in somebody's backyard. Somebody will always be opposed to it for that reason. But I think you've all done your due diligence. You've looked and researched through this. You've indicated, for the most part, that you believe in this. And I support that feeling. I support the data center.”

Jim Davis spoke against the extension.

“The purchase of these properties and potentially others is too important an issue to be bundled with the other issues and should be held as a separate vote,” he said. “If I were a suspicious person, what's suspected was done on purpose, as well as enacting it as an emergency measure with no clear need for urgency. At any rate, I would urge the council members to reject the ordinance as written or table it for further discussions among council. Lastly, it is no coincidence that several people in attendance at last week's meeting were present — I could have called out the representatives from Rudolph Libbe. Lathrop, the Oregon Economic Development Foundation, and the regional growth partnerships. All who have significant financial interest in this project going forward. Once again, I feel the citizens of Oregon are being left in the dark and things are moving forward behind the scenes that are purposely being kept from us. Other communities in the area are speaking out against these projects, and I believe that these entities view the city of Oregon as a wedge that they can use to force these massive projects into our communities against the wishes of our citizens.”

Acting city administrator Paul Roman addressed several items but attempted to clarify that the vote was not one to approve the data center.

“I'm asking to allow the extension to look at all the facts,” he said. “To say no to that is fear of what you may find in those facts. I'm just asking to put the facts together and put it before this body to review and approve. That's all I'm asking for. That's all this extension is. This isn't the approval of the data center. This is the approval for an extension to consider a data center. There's three more ordinances still required. There's a lot of requirements you can put in that economic development agreement that safeguards the public. That's for the public.”

The superintendent of Oregon City Schools, Dr. Jim Fritz, was also present at the meeting and spoke in favor of the extension.

“Oregon City Schools want to express our support for extending the land purchase agreement with the developer of the proposed data center project an additional six months,” he said. “As a school district, we deeply are invested in the long-term vitality of our community, the school district, and the city. The data center project represents a significant opportunity, not only in terms of economic development, but also in the potential for expanded tax revenue that directly supports our students, our staff, and educational programs.

“We further support this extension and potential opportunity because it has the ability to lessen future increases in taxes to local property owners. Projects of this scale and complexity often require additional time to complete due diligence, finalize planning, and navigate regulatory processes. (Approving) this extension ensures the developer can continue moving forward responsibly and deliberately, along with city council and the city.

“From the district's perspective, granting this extension is clearly in the best interest of both the community and our schools. Potential benefits of this project — job creation, increased tax base, and strengthening infrastructure — align with our shared vision for a thriving Oregon. We believe allowing the developer the necessary time to complete their work increases the likelihood of a successful project that will serve our residents for decades to come.

“We appreciate the city council's thoughtful consideration of this matter and your ongoing partnership in supporting initiatives that enhance the quality of life and educational opportunities in Oregon. Oregon City Schools stands ready to collaborate in any way that supports the continued progress of this project.”

The extension was originally proposed by Turner to answer questions from an electrical load study, to obtain permits for natural gas pipelines, emission controls, and further negotiations for four additional sites that are already owned by the city.

Each of those sites are approximately 1.5 acres each and would push the project from 170 acres to 176 acres. That would also increase the purchase price from $17.4 million to $18 million.