[0:00] Dan Leser: Dan Leser with Mortensson and Development. Uh, thank you, Mr. Mayor, counselors, chief, city staff. Um, one of the common threads we heard was more information. Um, so tonight we're hopefully going to provide some of that. [0:16] Dan Leser: Um, we also understand that this is a second reading for the reasonzoning, but as director said, these are tough to kind of peel apart without kind of talking about everything. So maybe first what are data centers and then what does this one um look like and our project team is here to help with that. So what are data centers? They they're critical pieces of our local and national infrastructure. [0:44] Dan Leser: Um that is a fact. They every time we pull out our phone, use our computers, shop online, um talk to your kids on Zoom, whatever it is, all those things ping through a data center. And the more that we consume data, the higher the demand is for these structures across our country. So that's what data centers are. a very simple uh simple way to describe them, but um I'll turn it over to the team here and we can talk specifically about about this project. [1:19] Brian Wordman: Thanks Dan. Uh Brian Wordman with Kimley Horn uh one of the engineers working on the project uh from our team here. Then we got Jason Scrimshaw from Kimley Horn as well. So uh wanted to provide a little bit more technical background on the project uh as we uh are working towards the applications for a special use permit and a CIDP uh for a communication services facility of which a lot of this information we also plan to present at uh planning and zoning tomorrow night. Uh so let's start first by taking a look at the site. Uh both Chad and Eric had uh mentioned where the site is. Uh but here's a map that depicts uh the location of the proposed development at southwest corner of Midway Road and Morris Thomas Road uh [2:06] Brian Wordman: immediately east of the existing Minnesota Power Arrowhead substation uh which has a uh significant impact and draw for this type of development. Uh, additionally with the strong county infrastructure and roadways adjacent to the site, uh, as well as US highway 2, uh, provides, uh, great access for an industrial project. [2:31] Brian Wordman: If we go to the next slide, um, we wanted to give some background on the site studies that we have commissioned or have engaged other project partners to complete over the last couple of months. Uh, the first of which is a wetland delineation. Uh so we have completed a field wetland delineation of the entirety of the project area uh in which we've worked with the city, the county, uh Bowser as well as the Minnesota DNR to establish boundaries across the site for existing wetland areas. Uh we've completed a threat and endangered species review uh concurrent with our alternative urban areawide review uh which was before council uh at the last meeting. [3:16] Brian Wordman: Uh we've completed a cultural and archaeological survey uh in concurrence with the FondeLac tribe. Uh we've completed a tree survey uh mostly around the perimeter of the property in identifying areas in which we can preserve existing vegetation to continue to create a natural buffer or screen. Uh we've done a phase one environmental site assessment and we've also completed a noise assessment uh or noise modeling specific to this project in which we'll get into some more details uh further on in our presentation. [3:50] Brian Wordman: If we go to the next slide, uh this is the currently proposed site plan for the development. Uh this site plan is uh largely similar to that of which was included in the AU document. Um, as Chad had mentioned, we're proposing four data center buildings, of which you can see one in the southwest corner, southeast corner, northwest corner, and northeast corner of the site. Uh, those data center buildings are approximately 300,000 square feet in square foot floor area uh, and would be approximately 40 to 50 feet in height. Uh, additionally, as far as structures on the campus, uh, we're proposing two approximately 30,000 square foot office buildings. Uh, one of [4:38] Brian Wordman: which are the two are generally located, one central to the site and then one kind of more southeastern portion of the site. Um, those buildings would be approximately 20 to 30 feet in height. Uh and then there is one office uh warehouse uh storage building which is uh approximately 45,000 square ft in floor area which would be more located central to the entrance uh area. Uh the site access would come off of Morris Thomas Road in the northwest corner of the property um adjacent to where Minnesota P's existing uh gravel access driveway is located. [5:22] Brian Wordman: uh that access point would be the primary entry into the site in which there would be gated secure entry point. Um there would be uh secure access or a secure perimeter around the entirety of the project. Uh there would be one additional secondary access point which is located more central to the campus off of Morris Thomas Road which would provide a secondary means for potentially construction uh as well as emergency access long term. [5:53] Brian Wordman: um a few of the uh elements on the site that helped uh the many studies that we had completed uh that helped informed this site plan. Uh a number of which are the wetlands. Uh so there is as we had delineated there's a series of wetlands throughout the property which we'll get into a little bit more detail in a bit. [6:13] Brian Wordman: Uh but we are preserving what would be a substantial existing wetland complex in the southeast corner of the site. uh which is proximal to the existing trout stream. Uh so the area on the site plan that's uh generally shown in white in the southeast corner is an existing wetland uh that would not be disturbed as part of the project throughout the middle of the site and the central portions. Uh the buildings have been located uh strategically to preserve existing wetlands throughout the site that are existing in there today. Uh and you'd see a number of proposed storm water basins which have been strategically located as well across the property. Uh which we'll get into a little bit more detail later on. Um around the perimeter of the property, we [6:58] Brian Wordman: uh we've significantly increased the amount of uh setback or distance from the rightway to uh the proposed buildings above and beyond uh what is the baseline zoning requirements for the BLM zoning district. Uh that setback is uh to provide an enhanced screen for landscaping, allow us to get in the perimeter fencing, uh develop some BMS uh and also install some screen walls uh and acoustical walls to help assist with some of the buffering uh from the project. [7:36] Brian Wordman: If we go to the next slide, uh water usage for the project. Uh here's a graph that generally shows the anticipated water demand throughout the course of a a normal day or operations. Uh this the data center buildings that are on the campus uh will not require water for cooling. [7:57] Brian Wordman: uh this campus would be consistent with any other office or commercial development with its water usage and that it would be used for restrooms, kitchen uh or cafeteria areas, laundry, showers, as well as landscape irrigation. [8:12] Brian Wordman: Uh the average daily use for the project, we're anticipating it to be anywhere between 30,000 gallons a day and 50,000 gallons a day, of which we studied up to 50,000 gallons a day in the AU. Um that's an equivalent to approximately 160 single family residential units. Um and those are numbers that would be at full campus buildout. So post construction of all four data center buildings. Uh wanted to note that that anticipated water usage may be anywhere between 2 to 5% of the existing city's uh water system. [8:54] Brian Wordman: If we go to the next slide, uh related to traffic for the project. Uh so there's a number of stakeholders that are involved obviously with the proximity to um good roadway infrastructure both from the city of Hermantown, St. Louis County, and Mandot. [9:13] Brian Wordman: uh traffic from this site. Uh based on historical uh like developments, uh we're anticipating that there would be approximately uh 1,920 daily trips coming to or from the facility. Uh with the AM numbers uh being at 290 at full campus buildout upon completion of all four buildings. uh to give some context to uh these traffic numbers that would be the equivalent of a medium-sized department store. [9:46] Brian Wordman: Uh in our experience in working on these projects, uh the traffic demand for a data center when compared to other called industrial manufacturing facilities on a similar similar acreage, it could anywhere generate anywhere between 25 to 50% of that traffic. So it is a lower demand post operations compared to a typical uh industrial type project. Uh during construction uh as Chad had noted earlier uh there's a significant presence during construction to complete the the build of the facility. uh based on historical numbers uh we're anticipating that that would be more than what is operationally uh for the AM and PM peaks with those numbers [10:34] Brian Wordman: being approximately 360 to 390 trips uh during the peak hours. So ultimately we have uh evaluated and modeled uh the traffic that's been completed. Uh there's a number of intersections that we've identified uh improvements uh that are warranted to. Uh, one of which is at the site access point off of Morris Thomas Road. Uh, the need to construct turn lanes uh, to access uh, the development site at Midway Road and Morris Thomas Road. We've identified the need for a um, traffic signal as well as enhanced turn lanes to provide improved traffic to and from the development site. [11:14] Brian Wordman: And additionally, one more uh, improvement warranted at US Highway 2 and St. River Road, which would be a westbound turn lane off of US Highway 2. Uh, with that, I think I'll turn it over to Jason here to speak more about acoustics. [11:31] Jason Scrimshaw: Thank you, Brian. Uh, good evening, mayor, members of council. Thanks for the opportunity to speak. Uh, as as Brian mentioned, my name is Jason Scrimshaw, a fellow civil engineer at Kimley Horn. Um, happy to talk to you tonight about some more details on the project. [11:48] Jason Scrimshaw: um and especially elements of the project that helped inform and shape the design as it's evolved. So, I want to start with acoustics. Uh we know that that is a topic of great interest to a lot of people. Um maybe I'll start with just some housekeeping items about acoustics in general. Uh noise limits in Minnesota are uh set and established by Minnesota Pollution Control Agency, the MPCA, at a state level and they're enforced locally at a city level. [12:20] Jason Scrimshaw: Those noise limits are dependent on adjacent land uses um and are most restrictive near residential land uses. So, um, our site will comply with the most restrictive, um, residential noise ordinances. [12:38] Jason Scrimshaw: For our specific site, those ordinances are 60 dB during daytime operations and 50 dB during nighttime operations. Um, that is the limit. Um, we have conservatively designed our site and and modeled our noise assessment to comply with 50 dB in either daytime or nighttime operations. [13:03] Jason Scrimshaw: Um, on this slide you can see of a helpful graphic that shows, you know, a representative scale of comparative noise sources. Um the noise restrictions are measured in decibb which important to note is not a a linear scale. It's a logarithmic scale. So that means that um every 10 dB roughly is a doubling in the perceived uh level of noise or sound by the human ear. Um it also means that noises aren't compounded. So you can't take two 40 decel noise 40 decel level noises and combine them and suddenly they make an 80 decel noise. If you if you look at [13:49] Jason Scrimshaw: the graphic that that makes quick sense when you compare u you know two refrigerators plugged in in the same room don't suddenly become the same noise as a a motorcycle. Uh so our site um because of that logarithmic scale it becomes very important to model this uh in a very um very detailed precise way to make sure that we're complying with the state ordinances. So we established a very detailed model that takes into account ground contact, topography, um building location, building situation, um as well as you know proposed [14:37] Jason Scrimshaw: mitigation measures. So our first pass of that model indicated that mitigation measures were warranted. So, as you can see in the graphic on the left, we do have um those noise contours being pulled in. Um that's representative of two different barrier walls as well as um a large earth and berm. So, along the eastern perimeter of the site, we're proposing an earth & burm with a noise wall on top of that. And on the north perimeter of the site, we're proposing a noise wall. [15:11] Jason Scrimshaw: These like like Brian mentioned in a previous slide have the dual benefit of providing a visual buffer and screen as well as this um noise abatement. Uh if we flip to the next slide, I want to talk a little bit about lighting. [15:30] Jason Scrimshaw: So our lighting on this site will be designed and governed um similar to every other development in the city of Hermantown. We won't um be seeking any kind of variance or um or um yeah special lighting considerations. Um as shown in the site plan slide, the setbacks that we're proposing are 10x of what's required. [15:58] Jason Scrimshaw: That helps us in in meeting our light requirements. Uh the city's requirement is that we we don't um we don't provide any glare from our property onto neighboring adjacent parcels and we also don't allow for light spillover from our site into other parcels. [16:20] Jason Scrimshaw: One of the main ways we're achieving that is by our large setbacks um pulling the majority of our site infrastructure internal to the site. Um, we've also been very deliberate and intentional about the selection and placement of our light fixtures. So, placing them in in sensible locations and using um down lighting and inward lighting, using cut off shields um that allow the fixture unit to to cut off that that uh light spill. [16:55] Jason Scrimshaw: Um, so we will be complying with all city lighting standards. Uh, the next slide. So the graphic here is the existing wetlands on site. Um, as mentioned previously, we've completed both desktop and field delineation of the existing wetlands. [17:17] Jason Scrimshaw: We've met both virtually and in person on site with a technical evaluation panel or a TP. Uh the TP is comprised of city and county staff, Bowser, which is the state board of water and soil resources um as well as Minnesota DNR. [17:36] Jason Scrimshaw: We fully anticipate that the project will be that the wetlands on site will be regulated by the wetland conservation act and potentially the army corps of engineers. So we'll be in the process of applying for uh an approved jurisdictional determination which will determine our permitting course for wetlands. [17:56] Jason Scrimshaw: Um, in getting to this point, we have gone through um multiple evolutions of the site plan, overlaying, wetlands, lighting, noise, landscaping, traffic to really try to optimize for each one of these design elements. [18:13] Jason Scrimshaw: Um, if we flip to the next slide, um, I want to touch on storm water. So this is a a cross-section of our typical storm water basin. Um as mentioned previously, they're designed to be filtration basins or biohiltration basins. [18:32] Jason Scrimshaw: On the left side of the graphic um upstream of the basin is a pre-treatment structure. So these structures are intended to provide um a filtering of the initial flush um floatables, trash, large debris um to keep them from clogging up and um impacting the efficiency of that filtration media. [18:55] Jason Scrimshaw: Downstream of that pre-treatment structure would be our primary filtration bed. Um this bed would help uh provide a water quality benefit um by filtering out total suspended solids and phosphorus um as well as helping with manage um the temperature of runoff. So providing a filter media and that residence time for runoff to filter through the media um helps manage the temperature control of runoff which is the primary um consideration when discharging towards a uh a trout stream in a uh um special waterway. [19:39] Jason Scrimshaw: Um the basins have also been designed to meet all city and state storm water requirements related to rate control. Um making sure that our rate of discharge doesn't exceed the rate of discharge today. Um maintain those drainage patterns so that where water discharges today, it discharges in the future. Um and also the state requirement of volume and control. [20:03] Jason Scrimshaw: Um when you look at the placement of our storm water basins as well as the preservation of existing wetlands, you can see um the effort that went into the site planning to try to preserve and maintain the natural resources of the site. [20:21] Jason Scrimshaw: If we flip to the next slide, um just to help orient everybody. U so these are some perspective views. Um, these two in particular are on the north side of the property. Um, on the right side of the image would be Morris Thomas Road. So, you can see, you know, a little graphic of a car. Um, to the left of that vehicle then would be the north end of the private development. [20:50] Jason Scrimshaw: Um, we wanted to show this just because there's so much topography across the site. Even in existing conditions, there's more than 100 ft of elevation change. Um in the proposed conditions there would be some balancing um to reduce that total differential. Um but as far as a a visual and screening um consideration goes. Um we are trying to take advantage of the natural topography to provide some screening. We're also providing as Brian mentioned um a robust perimeter landscape plan. [21:22] Jason Scrimshaw: Um within these landscape sections there's you'll notice some shading or some color coding to those plantings. Um that's intended to highlight um you know a general time lapse of that landscaping. So showing from darker to lighter a progressive growth of of those plantings between one and 30 years. [21:46] Jason Scrimshaw: If we go to the next slide, um these are looking north on Midway Road. Um and this really helps illustrate the benefit of the earth and berm and the soundwall um in relation to the height of the site internally. [22:16] Jason Scrimshaw: So, that's the information that we've put together. Uh, trying to highlight a little bit more of the technical specifics of the project. Uh, certainly appreciate you guys having us here and allowing us to give some additional details of what we've been working on. Um, and stand for any questions that you may have for us. [22:36] Julie Pierce: Thank you. Good evening, Mayor Busher, councilors, and staff. My name is Julie Pierce. I'm the vice president of strategy and planning for Minnesota Power. I'm responsible for the long-term planning and strategy and origination for Minnesota Power. [22:54] Julie Pierce: really pleased to be here this evening to be able to share a few uh thoughts and comments uh regarding electricity and how it's utilized and how you can hook up and become a new customer for Minnesota Power. I've been in the energy industry over 28 years and I've been with Minnesota Power for 18 years. I've had the privilege to be able to be part of this beautiful region for 18 years and the robust electric infrastructure that has been created over that time frame. We have a long history over a 100red years of serving electric customers, residential, commercial, cabins, large industry. Uh we actually have 155,000 customers that we serve in Northeast Minnesota, including this great city. We also serve [23:41] Julie Pierce: some of the largest industrial customers in the nation. We are a 24 by7 electric provider. Our product is electricity and it's measured in milliseconds. We must be reliable, affordable, and accessible. [23:58] Julie Pierce: It's our responsibility and our obligation. So if someone wants more electricity and wants to join this great region, they need to go through a pretty rigorous robust process to ensure that they have the access and availability to that infrastructure. [24:16] Julie Pierce: Requests come in all the time from new residents, new commercial businesses, from car washes to new commercial buildings to new industrial expansions and new possibilities. [24:32] Julie Pierce: Just this year, we've had hundreds of these interconnection or grid connect requests. Those grid connect requests go through, as I mentioned, a very uh disciplined, rigorous study process to ensure that there isn't going to be impact to the grid or if there is, that it's mitigated so that we can continue to provide our 7x4 reliable power around the clock at a reasonable cost. [24:59] Julie Pierce: For large customers like what we're talking about here, you heard about the project. They came to us with a request to interconnect to the grid to connect. They wanted to connect right next door to where their project is at our Arrowhead substation. [25:15] Julie Pierce: We took that interconnection grid connect request in with all of the other requests that we have. As I mentioned, we have several of these at any given point in time. That study goes on for months. It looks at not only the local area and city and neighborhood. It goes beyond to county, region, states, and even multiple states be beyond us. Excuse me. That study ensures that the power consumption by the new customer does not have negative impact and can be accommodated. [25:53] Julie Pierce: If there's any needs for the system to be upgraded, there is a very uh rigorous process to identify what those are. We have a great team at Minnesota Power that studies this on an ongoing basis. Anything that's identified during those studies needs to be paid for and responsible for by the interconnection customer. This is similar if you wanted to put a new service in your garage or if you wanted to build a business on your property, you would contact Minnesota Power. We would work with you and identify what the needs are for you to do that. Whether it's underground, a cable to your garage, put a new meter on your house or your business. And then we would identify what those costs are. And then you would have the choice about [26:39] Julie Pierce: whether or not you would want to stay with your plan or if you would like to not build that extra garage or that business expansion. So it's a process. It's iterative and we study to ensure that the reliability of the system is maintained. Once a customer decides they do want to come join Minnesota Power, we ensure those studies are finalized and all of the impacts are looked at and then we have them sign an agreement. [27:07] Julie Pierce: It's called an interconnection agreement. It's governed by the Federal Energy Regulatory Commission or FK. They signed this agreement which says that they will be responsible to pay for any line upgrades, substation upgrades, regional upgrades, even outside the borders of this town. [27:27] Julie Pierce: They would be responsible for paying for those costs. That is a signed contract is filed with FK and that is what um allows them to become an interconnected customer with Minnesota Power. Similar things go for commercial and residential customers. [27:46] Julie Pierce: The power supply which is also a very important part of the equation for providing electric service is provided through long-term planning and looking at what would be needed if we had new load come to our customer base at Minnesota Power. There is a long range planning process called the integrated resource plan that is governed by the public utilities commission of Minnesota. [28:12] Julie Pierce: Minnesota is one of the highest, most robustly regulated states in terms of electric infrastructure and service in the United States. That plan identifies what would happen if we would add additional load to our grid and what happens if we have to contract and lose load from our grid, which sometimes happens. [28:38] Julie Pierce: That plan identifies each step, every resource, every new renewable resource, every wire that's needed and is approved by the public utilities commission. We are not able to build stuff without permission from the public utilities commission. [28:56] Julie Pierce: We also have a very robust policy in the state around clean energy. We have a mandate for 2040 to ensure that we have clean energy serving our customers. I'd like to say that Hermantown and Minnesota Power customers already enjoy a 50 to 60% renewable power supply right now and we have plans in place through our integrated resource plan by 2035 to be 95% renewable energy. [29:27] Julie Pierce: The requirements of the state require, even if our load grows, that we must continue to meet those goals and mandates for cleaner, renewable, reliable, and affordable energy. And that is governed by the public utilities commission on a regular basis. Each time we would like to make an addition of a new load or a new generation resource, it is our job and our privilege and our responsibility to ensure that there are it's reliable electric service. So why we have to serve these new loads? Why do we want to serve new load? We want to serve new load because additional customers provide benefits to all customers. Specifically, [30:12] Julie Pierce: additional customers help pay the mortgage. I like to use mortgage as an example. If you have more people living in your house paying the mortgage for all of your infrastructure and costs, then that burden is a lot less for all of the rest of the mortgage holders. [30:29] Julie Pierce: It's similar with electric service. The more customers we have to share and spread the costs of our electric infrastructure in this region to keep it robust, reliable and available is spread over more more customers, more users. [30:47] Julie Pierce: And that is a sharing that helps reduce the burden of our cost. Furthermore, there's other protections, customer protections that are in place. Minnesota, as I mentioned, is a very robust, forwardinking state. not only in its electric service and planning but also on where we are going as a state. [31:06] Julie Pierce: In 2025, they passed landmark legislation specifically around data centers coming to our state. They wanted to make sure that as new customers in this new industry came to our state that we had consumer protections, both electricity, water, and environmental protections to ensure that we could do it right here in this state. [31:29] Julie Pierce: This legislation identifies clearly that if a new data center is to connect anywhere in the state of Minnesota that existing customers cannot be impacted. Furthermore, they have to provide additional benefits. So, the legislation is a great framework and a very useful framework as we're moving here in northeast Minnesota considering the potential for data centers. [31:53] Julie Pierce: Minnesota Power is confident in the reliability of our grid that we've built up to serve the largest industrial customer 7 by 24 uh for the past century. We're committed to achieving our carbon-f free goals and proud to support the new economic investment in our region. Our strong and talented team is ready to assist with any questions as you continue through these early stages of consideration and this public process. and we thank you for your public service and your consideration of the Hermantown proposal and this community.