Hillsboro City Council Work Session on Data Centers and Enterprise Zone - June 9, 2026
Hillsboro City Council Work Session on Data Centers and Enterprise Zone - June 9, 2026
The Hillsboro City Council held a work session on June 9, 2026, to discuss data centers and the Enterprise Zone program. The session included presentations on land use regulations, environmental protections, enterprise zone history, financial impacts, and policy options. Council members debated and provided direction on a range of potential changes to land use codes, enterprise zone policies, and community benefits. The meeting began at approximately 7:00 PM and included four main sections: background, land use, enterprise zone, and a catch-all for additional policy discussion.
Consent Calendar
- No consent calendar items were discussed.
Public Comments & Testimony
- No public comments were taken, as this was a work session. Council President Harris noted that the next opportunity for public comment would be at the regular City Council meeting on June 16, 2026. Several audience disruptions occurred, and warnings were issued to individuals for interrupting.
Discussion Items
- Background and Environmental Protections: Staff presented layers of regulation for waterways and sensitive areas (SNRO, Clean Water Services, floodplains, jurisdictional wetlands). Maps showed overlapping protections and examples of development avoided or mitigated.
- Land Use: Planning staff reviewed zones where data centers are allowed, the development review process (type II administrative decisions, public notice), and the process for code amendments (80-90 days, public hearings at planning commission and council). A land use moratorium process was also outlined (45-day notice, public hearing).
- Enterprise Zone Program: Economic development staff described the program history, 20 years with 100 approved applications, 50 active, representing $11.6 billion in investment and ~3,200 jobs (median compensation $126,500). Community Service Fee (CSF) revenues have grown significantly; currently $55 million in a dedicated fund. CSF must be used for workforce development (years 1-3) and economic development (years 4-5) per state and local policy. Local requirements include minimum investment, wages starting at 102% of minimum wage, annual local procurement reports, training, and a 15% school support fee in years 4-5. Phased projects are allowed under state law; each phase can receive up to five years of exemption.
- Finance and Tax Data: A case study of QTS data center showed property taxes paid on land and personal property ($22.5 million in FY2526), with an additional estimated $19.6 million if the enterprise zone exemption expired. School funding formula was explained—local property tax increases offset state funding, so school districts do not see a net budget benefit.
- New Proposals and Council Discussion: Councilors discussed multiple policy directions:
- Creating a new use category for data centers in the development code.
- Adding development standards for environmental impacts (noise, proximity to wetlands/schools) and energy efficiency.
- Geographic limitations on where data centers can locate.
- Requiring environmental and economic impact studies for future data center applications.
- Exploring a land use moratorium to pause development while code updates are prepared.
- Reviewing the Enterprise Zone community service fee structure and how CSF funds are programmed.
- Proposing a utility affordability fund (electricity and water bill credits) for low-income households, funded by data center fees.
- Reconsidering the delegation of enterprise zone application approval. A motion to require council approval of all data center EZ applications was voted down 4-2.
Key Outcomes
- Direction to Staff: Council reached consensus on several next steps:
- Explore a new land use category for data centers.
- Investigate additional development standards (environmental, energy, setbacks).
- Evaluate geographic restrictions (e.g., limiting data centers to certain industrial zones).
- Examine a land use moratorium as a temporary measure while code amendments progress.
- Review and potentially revise the Community Service Fee formula and local enterprise zone requirements.
- Commission environmental and economic impact studies.
- Analyze the feasibility of a utility bill credit fund for income-qualified households.
- Engage state-level advocacy on enterprise zone and school funding formula changes.
- Vote Defeat: A proposal to require City Council approval for all enterprise zone applications failed (4-2), though council supported ongoing transparency and delegation to the city manager with notification to council.
- Future Work: City Manager Robbie Hyman committed to providing a summary of council direction and a timeline for further staff work and presentations.
Meeting Transcript
Good evening, uh we're still too short, but I understand two short counselors, two counselors short, but I understand they might be here soon. Um, but we can, I think, get going here. Uh good even before we begin tonight's work session. I want to thank everyone for taking the time uh to attend tonight, whether you're here in person or joining us virtually or in the auditorium next door. Meeting is being broadcast into the auditorium also with overflow seating on TV C T V Channel 30 on Zoom and on the city's YouTube channel. A recording of the meeting will be available tomorrow morning on YouTube. We recognize tonight's topic has generated significant interest and we appreciate the large turnout. I want to take a moment to outline a few expectations so that this meeting can run smoothly for everyone, and we can have plenty of time for discussion among council. Uh, to assure the attendees both in the room and watching remote, they can clearly uh follow discussion. We ask that you please refrain from clapping, calling out or making verbal outbursts. This is a work session. These disruptions interrupt the flow of the meeting and interfere with the audio for those who are participating virtually. If you feel you have to publicly express support for a comment or viewpoint, we ask you to use a quiet, non-disruptive method, such as snapping fingers, a thumbs up, or jazz hands. I've seen it. Um this is a work session, like I said. There's no public comment in work sessions. Uh, the next opportunity for public comment, though, if you'd like to, is during the next regular 7 p.m. City Council meeting on June 16th. So show up there at 7 p.m. You can fill out the yellow card. You can go in there and you can make your public comment for three minutes. We know many of you are looking for clarity uh and information related to data centers and the enterprise zone here in Hillsborough. We hope uh our hope is that tonight's work session will provide a clear understanding of the issues before us, and importantly, we'll provide time for council discuss policy options and provide staff with direction before the end of the night. I'll turn the time over to the city manager, Robbie Hyman, to begin the work session. Thank you, uh Councilor Harris. Uh so uh I know last week we we started this work session. We got about a about a third of the way through. So there's uh quite a bit of information still that we wanted to get through tonight. And really, this presentation is based on a lot of feedback and questions and concerns that the staff has received from both city council and the public over the past several weeks. So our hope tonight is to be able to share as much information as we can with you all. Uh council obviously will then await uh any kind of direction on policy that you all want us to undertake uh moving forward. So uh with that, I think Dan is going to cue this up to the slide where you all left off last week. Um, we do have four kind of primary um sections. This first one is kind of the background section. We're almost done with that section. There's a couple more slides to go on that. The second section is on land use, the third is on the enterprise zone, and the fourth is kind of a catch-all. And that's also where we've tried to kind of group the different proposals that we've received from council in certain categories that are that are similar. Um, and our goal after each of those sections is to pause to have any kind of questions that the council has, any kind of clarifications or discussion of those points. Uh so with that, uh I will turn it over to Dan. I just have a quick question. Um you receive our materials and answering our questions. Is that information on our website that's focused on the data centers? Uh so we have both our website, uh FAQs and website that are is dedicated to data centers. All of the information as well tonight is included in the packet as well, both online, and I think we've put out a printed copies as well of everything that we have also. So then I just appointed clarification that uh information that um questions that council have asked, though that information has been answered and is available on the website for data centers or no. I think the questions the council has asked is what we're trying to address this evening. I think our FAQs get to a lot of it, but I think most of the questions are going to be addressed in tonight's presentation. Okay. And one more thing.
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