Eagan City Council Meeting - May 5, 2026

The Eagan City Council met on May 5, 2026, at 6:30 PM at the Eagan Municipal Center. The meeting included a consent agenda, one public hearing, and a major discussion on an Interim Use Permit (IUP) for the IronGate Data Center. The council approved the consent agenda and the easement vacation, but denied the IUP after extensive debate, also directing staff to withhold approval of permanent chillers pending a land use application.

Consent Calendar

• Approved minutes from special and regular meetings on April 14, 15, and 21, 2026.
• Approved personnel items, check registers, contracts, and acceptance of donations.
• Approved a change of manager for the on-sale liquor license at Kitchen and Rail (3344 Promenade Ave., Suite 100).
• Authorized signing of a Medical Response Unit (MRU) letter to the Minnesota Office of Emergency Medical Services (OEMS) for designation application renewal.
• Approved a temporary on-sale beer license for the Eagan High School Boys Hockey Booster Club event at the Eagan Civic Arena.
• Declared miscellaneous city property as surplus.
• Proclaimed May 17-23, 2026, as Public Works Week and July 2026 as Lakes Appreciation Month.
• Authorized a 5-year update of the Minnesota Vikings Headquarters and Mixed-Use Development Alternative Urban Areawide Review (AUAR).
• Directed staff to prepare an ordinance amendment to City Code Chapter 6.55 regarding rental licensing.
• Approved the public engagement plan for the 2050 Comprehensive Plan.
• Approved a proposal with Ashpaugh & Sculco, CPA to review franchise and PEG fees paid by Comcast and amended the 2026 Capital Improvement Plan (CIP) to purchase services.

Public Comments & Testimony

Public Hearing: Vacate Utility Easement at 1720 Alexander Rd.

• No public comments were offered.

New Business: IronGate Data Center Interim Use Permit

• Approximately 14 residents spoke against the IUP, citing continuous noise, vibrations, negative impacts on quality of life, and concerns about future expansion. Speakers included:
• John Gustin (48-year resident at 3061 Woodlark Lane): Called the data center a "parasite" and noted the applicant's lack of community ties.
• Kathy Peterson (3077 Timberwood Trail): Urged denial based on the APC's 6-0 recommendation and the inconsistency of the use with RD zoning.
• Joe Kruger: Provided technical insight on chiller operation and noise.
• Dan Sprick: Emphasized the need to deny until the end game is known.
• Maria Sporoska (3106 Pilot Knob Road): Described sleeping in her basement due to noise and requested continuous monitoring.
• Tim Scramstead (3045 Timberwood Trail): Questioned the applicant's lack of transparency and likened the situation to requiring permits for home repairs.
• Doug Dexter (3060 Woodlark Lane): Raised concerns about low-frequency noise impacts on children.
• Bill Jaco: Argued that the 1987 data center concept differs from today's use and criticized the "ask forgiveness later" approach.
• June and Ama (3060 Loon Lane): Stated that even acceptable decibel levels disrupt sleep and stress.
• Ann Mattis (3083 Timberwood Trail): Questioned the proximity (less than 400 feet) and noted the plan to expand from 4 to 8 chillers.
• Megan McAndrews (306 Loon Lane): Highlighted marketing materials showing a 30-megawatt co-location center and argued the expansion is a land use change.
• Tom Lopack: Urged the council to walk the neighborhood and experience the noise firsthand.

Discussion Items

IronGate Data Center Interim Use Permit (3199 Pilot Knob Road)

• Applicant position: Michael Margulies (Newton RES LLC, representing Egan Capital) argued that the property has been a data center since 1987, based on certificates of occupancy, and that the outdoor chillers are temporary mechanical replacements. He claimed the noise wall meets MPCA standards and that the IUP standards are satisfied. He offered to provide additional information if needed.
• Staff report: City Planner Schultz detailed the property's history, zoning (RD - Research and Development), and the noise complaints received (about a dozen from late February to early April 2026). The initial noise study indicated exceedances; after installing a 20-foot noise wall, a follow-up study at 3-4 AM on April 25 showed compliance, but staff noted limitations (single point in time, 48°F, unclear number of chillers operating). The APC recommended denial on a 6-0 vote.
• Council discussion: Mayor and council members questioned the applicant extensively about due diligence, the timeline of chiller installation, reasons for the permanent chiller expansion, and the adequacy of the noise study. The mayor noted the applicant did not seek land use entitlements before purchase, and the council expressed concern that the data center is now the primary use (not an accessory use), which conflicts with RD zoning. Councilmember Bachin raised concerns about the difference between storage and compute data centers and potential adult use implications. The council concluded that the IUP would enable a fundamental land use change without proper process.

Key Outcomes

• Easement Vacation: Approved unanimously (motion by Councilmember Murray Fields, seconded).
• Interim Use Permit (IronGate Data Center): Motion to prepare findings of fact for denial passed unanimously (motion by Councilmember Murray Fields, seconded). The council directed the city attorney to draft findings for the next meeting.
• Direction to Staff: Motion to direct staff not to approve the eight permanent chillers until they are part of a formal land use application passed unanimously (motion by Councilmember Hansen, seconded). The staff will not process the building/mechanical permits for the permanent chillers outside of a land use change process.