KC Area Plan Commission Votes No
Published: Friday, April 11, 2025
An outburst of cheers greeted the Area Plan Commission's unanimous decision to deny the request for the rezoning of 554 acres of prime farmland in Leesburg and Clunnette to Industrial 3 for a data center. The denial recommendation will inform the final decision to be made at the April 22 County Commissioners' meeting.
"Past performance is not indicative of future results," Area Plan Commission President Lee Harmon said. "It took me to the book of Ecclesiastes, chapter 10, verse 14. (It) says this: 'No one knows what is coming. Who can tell someone else what will happen after them?' And that tells me we need to be careful about making assumptions far into the future."
He said he could not know if the promises and projections proposed by Prologis, the real estate establishment looking to purchase the land, would come true in the future.
"Who knows what tomorrow's going to bring? I don't know. But I do know one thing: A usage such as this is going to alter the nature of the area for as far as I can see into the future," Harmon said.
The project, a proposal of 10 powered shell data centers designed to use 72 megawatts per building on an open-loop system, is contingent on the rezoning of land owned by Tim Polk, Polk Family Farms and Murphy Place. Local attorney Steve Snyder of Snyder Morgan and Kuchmay, LLP represented the landowners.
Snyder argued that the project would bring economic improvements to the county, including a job pool of approximately 300 positions, improved roadways and funding for schools, emergency response organizations, infrastructure projects and more. He said rezoning to I-3 would restrict the land use to data centers. The projected tax revenue from the project is $18.7 million, with the potential of reaching nearly $40 million by 2048. Snyder also said that a data center will provide diversity, boost rural energy and cut down on water usage.
He said the first year the tax revenue would be generated (2029), it would bring in $2.8 million. He added that this was the most modest estimate. He compared it to the revenue generated by farming the land, at a recorded $11,583, and said the 2025 revenue outlook was in murky waters.
"Right now, we don't know what the result will be, but almost certainly will be a decrease in tax revenue that's available to the county. If that happens, there are only two alternatives the county has besides increasing revenue: one way to increase your revenue is to increase the tax rate; the other way is you decrease services until the expenditures match what the income is," Snyder said.
"Those two alternatives are not the best route to go. Especially when you're looking at something that might provide this kind of revenue on an over 20-year and beyond period, and starting with $2.5 million in the first tax year and increasing every year after, up to $35 million."
Snyder said that this site is the only area in the county that could support a project to the scale of the proposed data center due to the substations located nearby. He argued that stationing the data center near the substations is similar to placing industry near railways or highways. He said the 345,000 transmission lines are the modern-day "access points" for technological industry, and that placing the data center in Leesburg is simply logical.
"A data center is an exception use in I-3 zoning," Snyder said.
Because of this, the details of the intended use are imperative for the zoning appeal, he said.
Prologis signed an agreement stating that they would provide development and maintenance of roads during the construction of the data centers. In addition, the company would use a closed-loop system, which uses 85% less water than the current irrigation systems on the land, Snyder said. The irrigation system uses a reported 128,000 gallons of water per day compared to the 40,000 gallons used daily by a closed-loop water cooling system. He added that the water would be treated on occasion for mineral buildup.
Snyder said the no recommendation does not faze him because the decision belongs to the County Commissioners. He said they may rearrange some of the information presented to make it more understandable and cohesive.
Also speaking in support of the rezoning for a data center were JC Witt of Prologis, Dalton Caley of Kosciusko REMC, Frank Larinson and Peggy Friday.
Representing neighboring landowners Stookey Farms, Templin Farms and Clunette Elevator, attorney Jack Birch argued that rezoning to I-3 for a data center is against the unanimous recommendation of the technical committee to the Area Plan Commission, opposes the Forward Kosciusko County Comprehensive Plan and a prime example of spot zoning.
"This is the definition of creating an island," Birch said. "The most desirable zoning is what it is now, and that's ag."
He added that it is federally designated as prime farmland, and it should not be taken out of production.
"Once we take it out, it's not coming back," he added. "Will we need data centers in the future? Do we still dial up the internet?"
He added that there is industrial land in Kosciusko County available, but taking up the area near the NIPSCO and KREMC substations is simply the easiest solution. Birch questioned taking the easy route, stating it would have consequences that are out of the county's control, including a domino effect on the land surrounding the area.
"This may not ultimately be the company or the project to go in you have no control over it once it gets rezoned."
Birch also stated that if the project is not profitable to Prologis, the largest real estate company in the world, Prologis would then likely abandon the area, leaving Kosciusko County with 554 acres that could only be used for data centers.
Nearly two dozen individuals also spoke against the zoning appeal.
Beth Lamb, a neighbor to the farmland proposed for rezoning, questioned if it was responsible development to add a data center to Kosciusko County in that area.
According to Indiana code, she said, "the planning commission and the legislative body, a.k.a. our commissioners, shall pay reasonable respect to –and the No. 1 thing is-- the comprehensive plan. After that they are to follow and give regards to current conditions and the character of the current land, the most desirable use for the land, the conservation of the property value, and the last thing they are to consider is the responsible development and growth of this area."
She argued that by approving a rezoning to I-3 for a data center would violate all those criteria and the criteria within the comprehensive plan.
"'Although new growth and development is encouraged within this comprehensive plan, the protection and preservation of existing agricultural land uses in Kosciusko County should also take priority,'" Lamb said as she quoted the Forward Kosciusko County Comprehensive Plan. "'New development, while beneficial, can create negative impacts on existing agricultural assets, such as drainage, runoff, destruction of prime farmland, and land-use conflicts between new and existing land character.'"
She said the neighboring property owners would need to be consulted as to whether adequate communication has been followed. She argued that neighbors were given inadequate information until shortly before the Area Plan Commission meeting. She also argued that the rezoning would be a prime example of spot zoning.
"Spot zoning has also been known as the antithesis of area planning," she said. "It is not what we do when we are responsibly planning."
Gabe Ayers of Clunette Elevator shared concerns about food security. He said that "every acre of farmland supports other businesses in our community."
He listed out a few, including: repair shops, machinery dealers, crop insurance companies, grain elevators, irrigation, local lenders and more.
He also said 554 acres of land produces about 111,000 bushels of corn per year, providing food for many.
Finally, he reminded the plan commission about the county's heritage.
"Try to remember where we began, the historical, current and future values of potential farm ground, the economic growth the farmland does provide to our local communities," he said.
He urged the plan commission to consider the long-term affects of rezoning the land.
Hayden Stookey, a Leesburg youth and District 2 FFA officer, said Kosciusko County plays a vital role in feeding the U.S. as the nations ninth largest production state.
"If we allow this land to be rezoned for industrial use, we will be setting a dangerous precedent," he said. "If this continues, then in just a few short years, thousands of acres of productive land across our state will be lost to industrialization. When the farmland is gone, so is the livelihoods of our farmers, the strength of our rural communities and our ability to flourish."
He stated that rezoning the farmland would hurt the future of agriculture and remove assets from youths in agriculture.
"I urge you to vote against rezoning," Stookey said. "Vote for our land, for our community, for our state."
Karen Templin and Robby Kelly urged leaders to consider the impact a data center would have on the quality of life for neighbors. They said an industrial zone would hurt property values surrounding the 554 acres, create constant noise and increase flow of traffic.
In answer to those who spoke against the rezoning, Snyder said the Forward Kosciusko County Comprehensive Plan was just a plan, not a set-in-stone order. He also said the plan was made before the possibility of a data center had been introduced.
Snyder argued that 554 acres was not spot zoning because it was too large to qualify, and that any county growth would eat into farmland. He likened the placement of a data center near the substation to the placement of Louis Dreyfus in Claypool near a railway.
He also said a data center would increase revenue in a way that positively impacted the county and said noise and traffic would be at a minimum. Finally, he argued that "if we come to a standstill and don't consider growth, we will be dead."
The final word was from Harmon, who discussed the dangers of allowing a debatable concession. He likened it to a camel's nose under the tent.
"So, you know, if the camel puts his nose under the tent, pretty soon the whole camel is under the tent," Harmon said. "My concern is not that this particular request will change from a data center because Mr. Snider has accurately represented that won't happen. But what about the other areas around it? That concerns me and I think it opens a Pandora's Box that I'm not comfortable with at all."
He also shared his concerns about spot zoning.
"Spot zoning is the rezoning of a parcel of land within a larger zoned area, often at odds with the master plan and current zoning restrictions. I don't care if it's 10 or if it's 500, if it fits that, that's an example in my mind of spot zoning."
He conceded the financial consideration was extremely attractive for the county and imagined the positive impact it would have for the county, townships and schools.
But "'all that glitters is not gold,'" he said, repeating the old adage. "I think that there's a price to be paid and I'm not willing to pay the price for the people who will be most affected by this."
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