Clifton Twp. Supervisors unanimously approved a settlement that scales back the size of a large-scale data center campus in the township, but allows buildings’ height to go above the municipality's own zoning laws.
The settlement is unpopular with a number of North Pocono-area residents and property owners — 24 spoke out against the agreement during the meeting.
"This settlement agreement affects zoning only. This is where the developer is allowed to go,” Chair Jill Zindle said. "This does not stop the process for them having to go through all land development … it doesn't mean they pour concrete tomorrow.”
The developer, 1778 Rich Pike LLC, plans to build “Project Gold,” a large-scale center campus between Clifton and Covington townships along Route 380. The campus would be on at least seven properties in Lackawanna County.
Representatives from the Doylestown developer, as well as Binswanger, a global real estate firm in Philadelphia, and local property owner Joseph Occhippinti sat in the audience.
Many residents questioned why the meeting was held on Friday at 7 p.m., one day after a national holiday and days before longtime supervisor Ted Stout is replaced. Stout, who served as a supervisor for 53 years, lost reelection to Matt Gruenloh, a member of the township’s planning commission.
Despite the unusual timing, at least 100 North Pocono-area residents attended the special meeting at the Gouldsboro Volunteer Firehouse. They asked for supervisors to vote against the settlement or at least to table the decision.
"Give the public time to read these settlements, to read these proposals, give the public time to comment. You're supposed to be here, working for us and representing us, not working for the company,” Clifton Twp. resident Matthew Chase said. He held up a sign that read “No AI” during parts of the meeting.
Solicitor Geoffrey Worthington said the project is unique to the “end user.”
“That much we know. It is time sensitive,” he said.
Anthony Maras, one of the developers’ lawyers, said in July that they signed a nondisclosure agreement with a company.
What’s in the settlement?
The stipulations voted on Friday will only be applied to the three properties. 1778 Rich Pike LLC is an equitable owner of the land. They are:
- Two properties on Clifton Road, which are about 390 acres and owned by JCO LLC, whose president is Occhippinti, according to property and court records.
- A third property on Routes 611 and 380, owned by Judge Family Estates LLC, whose officers are listed as Frances M. and Patrick M. Judge, and registered at 721 Rising Sun Road, Telford, Montgomery County, according to the Pennsylvania Department of State. The property is 144 acres, according to court records.
According to new project plans in the settlement, Project Gold will be split into three campuses in Clifton. There are five two-story data center buildings planned for the campuses. Each area has a stormwater basin. There is a utility switchyard and an administration building in the southeast campus, which is closest to Clifton Beach Road, Drinker Turnpike Road and east of Route 380. The area is also in Covington Twp.
The plans were prepared by Langan Engineer, Keith Ottes, who was one of 1778 Rich Pike LLC’s expert witnesses during the zoning board hearings. Ottes was at Friday’s meeting.
Conditions of the settlement include:
- The data center will no longer be on land zoned for residential use and will only be on land zoned for industrial use.
- The developer will abandon plans to use nuclear power and/or cycle gas-fired generation on the southeast campus.
- Disposal and treatment of all sewage and wastewater generated by the data center development must be outside of Clifton Twp.
- Data center principal buildings must be 100 feet from any property line.
- Data center buildings must be 400 feet from existing, occupied residential structures.
- The developer must submit an environmental impact study, traffic study and emergency response plan.
- The developer must submit a community fiscal benefit/impact study.
- The latest technology to eliminate or reduce the number of backup generators must be used.
- No centralized water system served by wells may be used for the cooling system of any data center development.
- Private wells may be used for drinking water.
- Water storage tanks cannot be larger than 85 feet tall.
- The original ordinance set sound standards at 67 dBA from Monday to Friday from 7 a.m. to 8 p.m.; and 57 dBA Monday to Friday from 8 p.m. to 7 a.m. and all day Saturday and Sunday. The settlement lowers those standards by two decibels to 65 dBA and 55 dBA, respectively.
If built, the campuses will extend into neighboring Covington Twp.
Covington Twp. Chair Melissa Kearney spoke first during the meeting. She asked that the meeting be rescheduled until the new supervisor is seated.
"Clifton Twp. simply cannot shift burdens of this development and or agreement to other municipalities, whether named or unnamed in the agreement,” she said. “Covington Twp. was not made aware of any potential settlement agreement, leaving little time to give thought to the effects of the project within the boundaries of Covington Twp., until reading about it on social media.”
How tall will the data centers be?
The original ordinance set the maximum height of data centers at 35 feet. The settlement now allows the buildings in Project Gold’s three campuses to be 65 feet. Roof top equipment and structural support can only be 15 feet high or below, bringing the total height to 80 feet.
“We have a township ordinance that does not allow buildings to go over 35 feet … you are violating your own township ordinance,” June Ejk said.
How did Clifton get here?
1778 Rich Pike LLC filed a substantive validity challenge in April against Clifton before the township had an ordinance governing data centers. Supervisors added an ordinance in May, which the developer then argued was too restrictive over four public hearings — which began in July and ended in November. They sought sight-specific relief.
Supervisors voted down a settlement — 2-1 with Zindle as the only yes vote — in August. The hearings continued.
Clifton’s four-member zoning board unanimously backed up its ordinance on Nov. 19. They voted that it “is not defective and is not unlawfully exclusionary as it relates to data center uses and is not substantively invalid.”
Attorney Matthew McHugh, who represents 1778 Rich Pike LLC, filed an appeal to that ruling on Nov. 26 in Lackawanna County Court. McHugh is an attorney from Klehr Harrison Harvey Branzburg LLP in Philadelphia and was also at Friday’s meeting.
Tom Nanovic, attorney for Clifton’s Zoning Hearing Board, issued the board’s formal decision backing up its Nov. 19 vote on Tuesday.
Worthington said after the meeting that the settlement does not end that litigation.
"The substantive validity challenge is not brought to an end by this settlement agreement. All that they can do is present this settlement agreement to the Court of Common Pleas in the zoning litigation,” he said.
Residents react: 'legal but not appropriate'
Howard Ives lives close to the planned data center campus. Because of his proximity, he was granted party-status during the zoning board hearings, meaning he could cross-examine witnesses. On Friday, Ives said that he received the formal decision five hours before the meeting.
"My family owns 150 acres. I'm fourth generation. This data center will destroy the value and the habitat of my property. I'm not going to give up this fight, even if you vote yes tonight, you are going to have more legal action coming,” he said.
Many residents felt the settlement undermines the zoning board’s decision.
“We spent all this time and energy attending the zoning board hearings. This settlement is like you're dismissing all the work that your other board did,” Paula Danchak said.
Resident Gretchen Bentler, whose property also borders the data center campus, addressed Occhippinti during public comment.
"I hope you feel shameful, remorseful of your neighbors fighting for their home values, fighting for their health, their children," she said. "We’re watching you.”
After the meeting, June Ejk said the residents plan to take the supervisors to court over the decision.
"It was very well orchestrated on the behalf of the developer. They planned to have this when it was a holiday weekend, when many people with families and children were away because schools don't open until January 5, and the new supervisor does not take office until next Monday, and they knew that he would resist the agreement,” she said.
The new supervisor, Gruenloh, was the last person to address supervisors before the meeting wrapped up. He spoke as a private citizen one last time.
"I understand that what you did is legal. I just don't think it was appropriate,” he said.
