After months of hearings, the Clifton Twp. Zoning Hearing Board is expected to decide Wednesday if the township’s zoning excludes data centers.
That could pave the way for Doylestown-developer 1778 Rich Pike LLC to build a data-center campus with up to 30 buildings on almost 1,000 acres between Clifton and Covington Townships.
Or, the legal battle could continue.
The developer filed a substantive validity challenge to the township's zoning ordinance on April 17. That challenge triggered the process through the township’s zoning hearing board, which began in late July. The developer seeks site-specific relief for the three properties in the township to build the campus. One of the properties is in an area zoned for residential development.
In between, on May 22, supervisors amended the township’s zoning ordinance to permit data centers by conditional use in the Industrial Zoning District. On June 20, the developer and property owner, JCO, filed a procedural validity challenge against Clifton Twp. in the Lackawanna County Court of Common Pleas.
The hearings began in late June at the Gouldsboro Volunteer Fire Company. Community members of the two townships and the greater North Pocono area consistently attend. Most are opposed to the data center. They worry it will drain their water and power and cause health problems in the mostly rural community.
“The proposed data center campus would upend this quiet community,” Louise Troutman, executive director of Pocono Heritage Land Trust, said in September. “It would destroy the rural character of our area, degrade the environment, cause light and noise pollution, increase everyone's electric bills and decimate property values.”
The developer, through Attorney Anthony Maras, argues that the campus — called “Project Gold” — would bring 400 to 500 jobs and generate huge tax revenues.
“To this region, data centers will be what coal and steel were to this region,” Maras told supervisors on April 17.
The final hearing will be held Wednesday at 7 p.m. at the Gouldsboro Volunteer Fire Company, 490 Main St., Gouldsboro.
The data center hearing process
The zoning board’s attorney, Tom Nanovic, divided the process into two parts.
First, over four hearings, the zoning board heard testimonies as to why the zoning ordinance excludes data centers. 1778 Rich Pike LLC called six expert witnesses to testify. Township solicitor Geoffrey Worthington and residents who were granted party status because of the proximity of their properties were able to cross-examine the witnesses.
The five-member board will vote on whether or not the ordinance is defective on Wednesday
If the board decides the ordinance is enough for the developers to build Project Gold, the hearing will be concluded.
“If the zoning hearing board decides that the zoning ordinance is defective, the zoning hearing board will hear testimony regarding what amendments to the … zoning ordinance are necessary to cure the defects,” Nanovic said in July.
1778 Rich Pike LLC has sale agreements with at least seven property owners in both townships.
Timeline: Data center challenge
April 17: 1778 Rich Pike LLC filed a substantive validity challenge to the township's zoning ordinance. They argued that the zoning ordinance excludes the following uses: data center, data center equipment, data center accessory uses/structures and private power generation facility, collectively referred to as data center uses. The developer is seeking site-specific relief.
Later that day, Clifton Twp. Supervisors introduced and discussed a data center ordinance that would amend the zoning ordinance to permit data centers as conditional uses within the Industrial District (I) and to provide additional regulations.
- May 22: Clifton supervisors added a zoning amendment to govern data centers.
- June 20: The developer and JCO filed a procedural validity challenge against Clifton Twp. in the Lackawanna County Court of Common Pleas. They said the township violated the Sunshine Act — the state's open meetings law, among other procedural problems.
- July 24: Covington Twp. Supervisors added data centers to the township's zoning ordinance.
July 29: The hearing began in Clifton.
A lawyer for the developer, Matthew McHugh, from Klehr Harrison Harvey Branzburg LLP in Philadelphia, and township Solicitor Geoffrey McHugh asked to move the proceedings to a different date.The zoning board denied the request.
McHugh called Matthew Corrigan to testify. Corrigan represents 1778 Rich Pike LLC, and is a senior vice president at Binswanger, a global real estate company from Philadelphia.
Corrigan verified that there are agreements of sale in place for three properties in Clifton Twp. to build the data center.
Attorney Jack Zelinka represents Barton Brothers, whose 772 acres of land border the proposed area for the data center in Clifton and Covington townships. He asked if 1778 Rich Pike LLC had ever developed a data center.
Corrigan answered “no.”
Residents continued to show up to oppose the data center.
September 9: The hearing continued.
McHugh called his witness, Ron Donati, the township’s zoning officer.
He asked Donati if the ordinance in April included any terminology about data centers.
Donati said "no."
McHugh’s next witness was Erik Hetzel, a professional land planner from Chester County. They went back and forth on the nuances of Clifton’s zoning ordinance.
Resident Gretchen Bentler, who has party status, questioned Hetzel about the land planning side of development. She asked him what the long-term impacts on the land are from data centers.
September 29: In a 2-1 vote, Clifton Twp. supervisors rejected a proposed settlement with the developer.
Worthington called the proposed settlement a form of risk management.
The settlement made concessions on both sides and also shifted the water supply, power generation and sewage disposal solely to Covington Twp. The developer included areas for small module reactors, which would use nuclear power to run the campus. Many residents are opposed to using nuclear.
Covington supervisors showed up to object to those stipulations.
September 30: Lawyers, residents and experts in Clifton Twp. discussed the right 'cocktail' for data centers
McHugh called William Westhafner, an architect with Norr, and Jake Terkanian, executive vice president of CBRE, as witnesses. They discussed the requirements needed to build a data center and how the ordinance makes those specifications difficult. They were cross-examined by Worthington and residents.
October 29: Attorney Maras took over the questioning for 1778 Rich Pike.
He called the developers’ last witness, Keith Ottes, a civil engineer and principal at Langan Engineering and Environmental Services. He works out of the Warrington office in Bucks County.
Ottes is working on between 10 and 15 data center projects, including in the Lehigh Valley and Philadelphia. None have been built yet.
He said data center buildings are typically 85 to 125 feet high. Clifton ordinance sets the high requirement at 35 feet.
Worthington asked Ottes if he testified that data center developments are not compatible with residential uses.
“That's correct,” he said.
Worthington then asked: “So you would not expect a zoning ordinance if it did provide for data centers to allow them in a residential zone. Is that correct?”
“That's correct,” Ottes answered again.
The testimonies wrapped up, and residents were allowed to give public comment.
“Simply because the ordinance does not allow for the most profitable version of your building does not make it exclusionary,” resident Amy Kelly said.
