Discussion about a proposed rezoning request tied to a potential data center project continued during the Wessington Springs City Council meeting Monday night.
City Attorney Gary Blue provided an update regarding property owner Brian Bergeleen’s request to rezone agricultural land within the city limits to commercial use. The property, legally described as a plat of BLB Tract in the NE ¼ of 18107-64, is the subject of a public hearing scheduled for Monday, March 9, at 5 p.m. at the City Finance Office.
Blue told council members that Mike Malone, a representative from Heartland, recently spoke with city officials about the possibility of locating a crypto mining or data center facility in Wessington Springs.
Blue said if the proposal advances, he believes it would be beneficial to host a public forum so residents could learn more about the project and ask questions.
“I think it would really be a good idea, if it gets that far down the line, to have Mike come up and have a public forum in regards to the potential crypto mining center,” Blue said.
He noted council members have already heard concerns from residents regarding issues such as noise, water use and potential health effects, topics that could be addressed during such a meeting.
Blue also shared projections provided by Malone outlining possible financial impacts for the city if the project were to move forward.
According to those estimates, the city could see approximately $200,000 annually in transmission fees, about $450,000 in electricity sales, and roughly $45,000 in sales tax revenue, for a combined total of about $750,000 per year.
However, Blue emphasized that the rezoning request currently before the city is simply the first step in the process.
“We can’t get to that point until we get a piece of property that they can put an option on,” Blue said. “If it’s not zoned commercial, they can’t do it anyhow.”
The Planning and Zoning Board will review Bergeleen’s rezoning request during the March 9 public hearing. After that review, the board will make a recommendation to the city council, which will ultimately decide whether to approve or deny the zoning change.
If the property is rezoned to commercial and discussions continue, city officials said the next step would likely include a public meeting with Heartland representatives to provide additional information about the potential project and address questions from residents.