Yorkville Data Center Rezoning Sparks Urgent City Debate

UPDATE: A proposed data center project in Yorkville is igniting a heated discussion between developers and city officials. Green Door Capital, a Chicago-based private equity firm, is urging the city to approve a rezoning request for three parcels totaling 130 acres near the Caledonia subdivision, which is currently designated for residential use.

The parcels, situated south of Corneils Road and east of Beecher Road, are critical for Green Door Capital’s ambitious “Meyer” data center proposal. The company needs city approval to change the zoning from multi-family residential to general manufacturing to proceed with its plans. The city’s 2016 Comprehensive Plan classifies these areas as suburban neighborhoods intended for single-family homes, complicating the approval process.

City staff have expressed support for rezoning the two western parcels but are hesitant about the easternmost parcel due to its proximity to residential properties. They argue that retaining its residential zoning will maintain a crucial visual buffer between the manufacturing site and homes in the Caledonia subdivision. According to city documents, this buffer would help ensure compliance with city regulations requiring a 100-foot landscape buffer and a 500-foot setback from residential structures.

During a recent Economic Development Committee meeting on September 2, Green Door Capital representative Kevin Kearney passionately advocated for the eastern parcel, reminding city officials that his firm was instrumental in introducing the area’s first data center—the expansive 228-acre CyrusOne campus. Kearney argued that the proposed data center would not harm nearby residents and emphasized the need for larger parcels, stating that limiting the rezoning to 100 acres would be insufficient for a functional data center campus.

Kearney also highlighted the potential economic benefits of the project, noting that each data center could generate between $500,000 and $1,000,000 annually in tax revenues for the city. Despite these promises, city officials have raised concerns about previous projections, particularly those related to the 1,037-acre Project Cardinal, which admitted that expected utility tax revenues would fall short of the anticipated $100 million at full build-out.

City officials are looking for assurances and have indicated a willingness to support rezoning if a development agreement is established, affirming that the data center will adhere to specified setbacks. However, Green Door Capital has stated that they cannot finalize any agreements without a confirmed end-user for the project.

The city is now taking steps to involve the public in this critical discussion. City staff have recommended that Green Door Capital engage with the Caledonia subdivision homeowners’ association before a public hearing scheduled for October 8, 2023, during the Planning and Zoning Commission meeting at City Hall. Notably, the city only notifies residents within 500 feet of the proposed development, prompting residents to voice concerns that this limit is too restrictive.

While many residents acknowledge that data centers could bolster the city’s revenue without increasing population density, there is significant apprehension about transforming the area into a manufacturing hub. The outcome of this rezoning request could set a precedent for future developments in Yorkville, making it a pivotal moment for both local officials and residents alike.

As the city prepares for the upcoming public hearing, all eyes will be on the negotiations between Green Door Capital and community stakeholders. The implications of this decision will resonate throughout Yorkville and may influence the city’s long-term development strategy. Stay tuned for further updates as this urgent situation unfolds.