The Hastings City Council tackled three issues that will help shape the city's future during its Monday, Aug. 3 meeting, taking initial action on a proposed data center moratorium, advancing environmental review for the long-planned Pleasant Valley Farms development and receiving another monthly update on the city's multi-year effort to eliminate PFAS contamination from its drinking water.
The meeting reflected the council's continued focus on managing growth while addressing the city's largest infrastructure challenge. Community Development Director John Hinzman presented two significant development-related items, while City Administrator Dan Wietecha updated council members on progress toward construction of Hastings' three planned PFAS treatment plants.
City moves toward one-year data center moratorium
One of the most forward-looking items before the council was the first reading of an interim ordinance that would place a one-year moratorium on new data centers while the city studies how such facilities should be regulated.
The council scheduled a public hearing and second reading for its Aug. 17 meeting.
The proposal comes as cities across Minnesota grapple with rapidly increasing interest from developers seeking sites for large-scale data centers driven by cloud computing and artificial intelligence.
According to Hinzman, Hastings currently has no specific zoning regulations governing data centers. Instead, larger facilities could likely qualify as permitted uses in industrial districts while smaller facilities might fit within commercial zoning, giving the city limited authority to evaluate their impacts before construction. The proposed ordinance would prohibit consideration of new data centers for up to one year while city staff studies the issue and recommends zoning amendments.
The proposal stems from discussions by the City Council's Planning Committee and a July 27 recommendation from the Planning Commission, which voted 4-0 in favor of the temporary moratorium.
Planning Commission members discussed the rapidly evolving nature of data center technology, differences between small and large facilities, lessons learned by other communities and the possibility that today's facilities could become obsolete as technology changes.
The proposed ordinance defines a data center as a facility principally used for storing, managing, processing or transmitting digital information, including associated infrastructure such as cooling systems, electrical substations, backup generators and water storage.
City officials identified several areas requiring further study, including:
• Electrical demand
• Water consumption
• Land use compatibility
• Noise impacts
• Air quality from backup generators
• Traffic
• Public infrastructure costs
• Environmental impacts
• Economic benefits
Under the proposed ordinance, no new data center could be established, expanded or re-established anywhere in Hastings until Aug. 17, 2027, unless the council rescinds the moratorium earlier. Existing businesses using computer facilities as an accessory use would not be affected.
The action reflects a growing trend among Minnesota communities seeking time to evaluate the significant utility, infrastructure and environmental demands associated with modern data centers before allowing them as permitted uses.
Pleasant Valley Farms reaches another milestone
The council also advanced another key step in the approval process for Pleasant Valley Farms, a proposed residential neighborhood on approximately 158 acres between Featherstone Road and County Road 42.
The council authorized distribution of the project's Environmental Assessment Worksheet (EAW), beginning a formal public review process required under Minnesota law because of the project's size. The action does not approve the development itself.
The proposed development would include hundreds of single-family homes and townhomes on land currently located in Nininger Township but planned for annexation into Hastings.
The EAW serves one purpose: determining whether the project requires a more extensive Environmental Impact Statement (EIS). It also provides environmental information for the public and regulatory agencies before future development decisions are made.
Following council authorization, the EAW will be published in the Environmental Quality Board Monitor on Aug. 11, beginning a 30-day public comment period that runs through Sept. 10. After comments are received and responses prepared, the council will decide whether additional environmental review is necessary before considering land-use applications such as rezoning, comprehensive plan amendments and preliminary plat approval.
The project represents one of the largest residential developments proposed in Hastings in recent years.
As previously reported by the Hastings Journal, Pleasant Valley Farms has been under review for months and has undergone multiple revisions. Earlier this year, the Parks and Recreation Commission asked the developer to reconsider its original park dedication proposal.
Revised park plan earns support
The council also approved the method of park dedication for the development.
The revised proposal differs significantly from one considered earlier this year.
Rather than dedicating approximately 24 acres of parkland that the city would have developed, Tradition Development now proposes:
• A three-acre neighborhood park dedicated to the city.
• Construction of the park improvements at the developer's expense.
• Construction of park trails.
• Preservation of approximately 10 acres of woodland as protected open space.
The revised concept received unanimous support from the Parks and Recreation Commission in July after commissioners had previously requested a smaller neighborhood park.
Under city ordinance, a development of this size would ordinarily generate a park dedication requirement of more than 27 acres or an equivalent cash payment. Staff concluded that the developer's commitment to build the park and associated trail improvements offsets the reduced land dedication while still meeting the city's long-term park objectives.
The proposed neighborhood park also aligns with locations identified in the city's Comprehensive Plan and would improve trail connectivity through the development while preserving significant wooded areas on the property.
As with the environmental review, approval of the park dedication does not constitute final approval of the subdivision.
PFAS treatment projects continue moving forward
Council members also received their monthly update on Hastings' effort to construct three water treatment plants to remove PFAS contamination from the city's drinking water.
Wietecha reported continued progress on both the central and eastern treatment plants.
Construction continues on the central Water Treatment Plant, where roof sheeting was scheduled for late July and early August and concrete work for filtration vessels is expected during August.
Meanwhile, bids for the eastern treatment plant were opened July 23. Rice Lake Construction Group emerged as the apparent low bidder, with construction anticipated to begin later this summer.
One remaining hurdle involves state funding.
Wietecha reported the city is awaiting instructions from Minnesota Management and Budget before the Public Facilities Authority can finalize grant agreements needed before construction contracts can be awarded for the eastern facility. City officials also recently met with the Environmental Protection Agency regarding the next steps for securing previously approved congressional funding.
The PFAS project remains the largest infrastructure investment in city history.
All six municipal wells contain PFAS contamination, while a proposed future well also exceeds federal limits for one of the chemicals. The city's preferred solution calls for construction of three decentralized treatment plants over several years.
The current estimated construction cost stands at approximately $70.3 million, with annual operating costs exceeding $1 million.
To date, Hastings has secured more than $23 million in outside assistance, including planning grants, 3M settlement funding and Emerging Contaminants grants. Additional funding—including a $17.5 million state bonding appropriation for the eastern treatment plant and another $5 million Emerging Contaminants grant—has been approved but awaits final agreements.
Wietecha also updated council members on changing federal PFAS regulations.
Although the EPA has proposed extending compliance deadlines from 2029 to 2031 for qualifying water systems, Hastings continues moving aggressively with construction.
According to Wietecha, delaying construction could reduce immediate financial pressure, but it would also prolong residents' exposure to contaminated water, increase the risk of construction inflation and potentially make future grant funding more competitive as other communities begin similar projects.
"At present," Wietecha noted in his report, "the legal deadline is still April 2029."
The report also highlighted recent legislative successes, including approval of the state's $17.5 million bonding allocation for the eastern treatment plant. Combined with anticipated federal grant funding, that assistance fully funds construction of the eastern facility and allows the city to avoid another water rate increase in 2026 while moderating future increases.
Other business
The council also approved several consent agenda items, including accepting up to $27,023 in state Office of Traffic Safety funding for fiscal year 2027 traffic enforcement efforts. The grant will continue Hastings Police Department participation in countywide enforcement targeting speeding, impaired driving, distracted driving and seat belt violations.
Council members also approved a $2,800 budget amendment to convert Council Chambers lighting from outdated halogen fixtures to energy-efficient LED lighting. City staff estimates rebates will reduce the city's net cost to approximately $2,800, with energy savings expected to recover the investment in about six months.