OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Kearney City Council Meeting September 8, 2026: Data Center Code Amendments and Conditional Use Permit Approvals

City Council — Tuesday, September 8, 2026
BodyKearney, Nebraska
SessionCity Council
DateTuesday, September 8, 2026
StatusNEW · FILED
Video Record
0:00 / 2:55:16

Transcript — Verbatim
0:00

And for a moment of silence.

0:11

All right, please join me in the Pledge of Allegiance.

0:14

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands under indivisible with liberty and justice for all.

0:35

In accordance with section 841412 of the Nebraska revised statutes, a current copy of the open meetings act is available for review as posted on the wall of the council chambers.

0:44

Peggy, please take roll.

0:47

Mayor Nicola.

0:48

Here.

0:53

Okay, we have uh no oral communications and no unfinished business.

0:57

So we're gonna start with public hearings one through four.

1:00

And public hearings one through four can be discussed together but voted on separately.

1:05

They pertain to the application submitted by Miller and Associates for the development of Tech One Fifth Subdivision Planning Commission recommended approval, Craig.

1:18

All right, I'll just move those things a little bit there.

1:20

Good evening.

1:21

My name is uh Craig Bennett, 1111 Central Avenue here tonight, and I'm here to represent uh the city of Kearney on behalf of uh the subdivision, which is one of the first public hearings that we have here to be known as Tech One Fifth Subdivision.

1:36

So the property that we're looking at tonight, we're looking at it both from a final plat and then from a rezoning standpoint as well.

1:42

So the property is located as shown on here on the north side is 56th Street, on the west side is Antelope Avenue.

1:50

Uh this is the MPPD substation and the expressway for orientation.

1:54

So what's shown in the red boundary that encompasses all of that with the exception of this parcel here is up for rezoning tonight.

2:02

Um and the yellow portion is the portion that we'll be walking through, which is uh the final plat.

2:09

So I thought I would take this back just a little bit, but just to remind everybody that in 2010 was when we first looked at this site and when we done an ULTA survey for this property, um, specifically for industrial park data center.

2:24

And so it's kind of kind of interesting to see us.

2:27

Here we are 16 years later, and um we're with another phase of a data center on this site.

2:33

Um at that particular point in time.

2:35

This happened to be the slogan which I still kind of like, um, where the high tech uh meets the high plains, and that was what we had when we were promoting um the data center that came here to look at our site.

2:46

And as I've said before, it seems to be like that's where we got second in the Super Bowl.

2:51

Um, and so uh anyway, we were selected as Carney was selected as a as a sole city to represent Nebraska for that particular data center project.

3:00

So it was quite an accomplishment for us to have as a community on our record.

3:05

Um at that time, too, was when we created the BP zoning designation, a business park zoning designation that allowed specifically allowed data centers.

3:14

So since that time, since 2011, uh the zoning to allow data centers has been in place over this parcel here.

3:21

So that is the zoning map from 2011.

3:25

Um additionally, at that point in time, we also created um six five-foot easements that encompass the site starting at 56th Street, and they ran south to a carrier hotel, carrier hotel, not a place for somebody to reside, but it's where uh the fiber infrastructure uh is located in a left up there and then does loop the site there.

3:45

And so those easements have been in place again, specifically for a data center on this particular parcel.

3:52

Um moving forward to today.

3:54

This is the current or effective zoning map that's in place today.

3:58

And so what you see uh by the red boundary that you see here, with the exception of where the crypto mine data center is located at um is a BP PD plan development overlay district on top of that.

4:12

Um it includes the the existing law office here, which they're uh um also a part of this rezoning where um the rezoning that we're asking for tonight would be to change it from BPPD to straight BP.

4:26

Um further, furthermore, you'll see later with the conditional use permits provide um the overlay district that the PD would normally do.

4:34

Um the comprehensive plan, the effective comprehensive plans future land use map um currently has that as BP, so no change or amendments need to be made to the comprehensive plan for this rezoning request from an infrastructure feasibility standpoint in looking at this final plat.

4:51

The yellow boundary here represents the area that we are looking at vacations and replating, and I'll kind of walk through those.

5:00

So currently, right now we have a 16-inch water main that traverses along 56th Street and then is brought down into the subdivision on Tech 1 Boulevard.

5:10

It follows global drive and then back out and terminates with the terminus point on both the west and the east portion of that.

5:18

The project that we have tonight will show connectivity of looping that back through in circulation.

5:23

So we have uh wonderful water infrastructure that was made available as part of the subdivision and the creation of taking the 16-inch water main from east to west from the high pressure system.

5:34

The sanitary sewer map that I have here shows that we have sanitary sewer that traverses southerly along along this corridor here, and then 56th Street, and there's a 27-inch sanitary sewer main that's along the west side of the property.

5:49

So that 27-inch sanitary sewer main will serve an area that extends out into this property about where that ditch is at.

5:57

So there's current infrastructure here that um was was built and extended to serve which was at that time expansion of software company now, the law office that sits there.

6:07

Um around the neighborhood, there's also existing gravity sanitary sewer that that goes easterly and uh traverses back up around uh the vet's home from a stormwater standpoint or surface water drainage there.

6:21

The blue boxes on here represent the inlets that are currently in place and provide stormwater direction and conveyance for stormwater from the runoff of the lots and the streets, and there's a ditch that was dug here by which we were planning to if we had to put this road in here, which would be a tech one boulevard link, um that ditch would be replaced with stormwater pipe and then be filled in with the project that we have here.

6:47

Um that ditch will no longer be needed.

6:49

Um, but the stormwater conveyance then goes to the stormwater outfall channel located in the NRD outfall channel that conveys itself all the way to the Wood River Valley Basin.

7:00

This is a FEMA map of the same property to show you what's inside or outside of the yellow boundary.

7:07

Uh the dark gray is a 0.2% chance of annual flood, or what FEMA used to call a 500-year flood, the light blue is a 1% chance of annual flood, or what FEMA used to call the 100-year flood, and that is contained to the NRD outfall channel.

7:21

So it's basically there's no hundred-year flood on this property.

7:26

Um, this is the infrastructure feasibility plan, which we're required to with a plant to show what infrastructure needs to be extended, and on the west side of the property there, because we have water and sanitary sewer already around this particular subdivision, there'd be an extension or connectivity to provide redundancy and looping via Antelope Avenue from 56th Street south to the northwest corner of the subdivision, and then continuing south southerly to the southwest corner of the subdivision.

7:53

300 foot radius map to show what properties are within the black dashed line, which would be 300 feet of the proposed subdivision plat.

8:04

And so tonight before you then is a rezoning exhibit of 96.04 acres by which we'd be asking for rezoning from BPPD to PD or BP for all of this area here, with the exclusion of this lot, which is already BP.

8:20

In addition to that, we're asking to vacate the existing lot and the platted Tech 1 boulevard, which is unimproved.

8:28

So this lot and this street right-of-way are unimproved.

8:31

So we're asking for those two to be vacated, and then to come back in where that lot to be vacated would exist here, and the right-of-way would exist along this corridor here, would be a part of a one-lot subdivision.

8:43

And so this is the preliminary plat of 58.77 acres for the tech one subdivision that we have proposed here.

Discussion Breakdown — Share of Meeting
Technology and Innovation████████████████████████24%
Zoning and Land Use████████████████████20%
Water And Wastewater Management███████████11%
Procedural█████████9%
Engineering And Infrastructure████████8%
Community Engagement███████7%
Economic Development███████7%
Public Safety████4%
Noise Pollution███3%
Summary of Proceedings

Kearney City Council Meeting - September 8, 2026

The Kearney City Council met on September 8, 2026 at 5:30 p.m. in City Council Chambers to conduct a series of public hearings and votes related to the Tech One business park, new data center regulations, and a proposed data center project by Horizon 1 Kearney Owner, LP. The council also handled consent agenda items, consent ordinances, and regular agenda items including a land purchase agreement and a community benefit agreement. All major votes were unanimous, with one abstention on a separate claim.

Consent Calendar

  • Approved amended minutes from July 28, 2026 and minutes from August 25, 2026.
  • Approved claims as presented.
  • Adopted Resolution No. 2026-101 approving amended Meadowlark Hills Golf Course Rules and Regulations from the Golf Advisory Board.
  • Adopted Resolution No. 2026-102 approving Change Order No. 4 (decrease of $30,024.59 and 17 calendar day increase) for the Airport Apron Reconstruction Project.

Public Comments & Testimony

  • Trevor Lee (Buffalo County Development Council) expressed full support for the data center code amendments, commending the city’s proactive approach.
  • Jordan Duffin Wong (820 West 56th Street, planning consultant) spoke as an expert and citizen in favor of all four code amendments (Ordinances 8819–8822), noting they match the spirit of regulations he is drafting for other Nebraska communities.
  • Dan Javens (5207 Avenue C Place) raised concerns about water consumption and runoff, questioning the comparison of water use between data centers and other uses.
  • Jacqueline Peterson (northeast of town) expressed concerns about water usage, noise, and impact on the Veterans Home, urging the city to consider the Ogallala Aquifer and livestock needs.
  • Ibrahim Hey Moustelier (5920 West 70th Street) asked about enforceability of water use limits, electricity cost protections, job requirements, noise compliance timelines, and backup generator usage. He received responses from staff and council.
  • Ellery Butterfield (2831 E Avenue) questioned the city’s ability to enforce regulations against a large corporation and expressed concern about potential delays in addressing complaints.
  • Terry Kraft (1501 East 64th) asked what the community receives in consideration for the project; the city manager detailed the community benefit agreement.
  • Matthew Schulte asked about the wind load capacity of the proposed screening walls; staff explained structural requirements will be verified at building permit stage.

Discussion Items

Public Hearings 1–4: Tech One Fifth Subdivision Rezoning, Vacations, and Final Plat

  • Craig Bennett (Miller & Associates) presented the proposal to rezone 96.04 acres from BP/PD to BP, vacate a platted lot and a portion of Tech One Boulevard, and approve a final plat for 58.77 acres (Tech One Fifth Subdivision). The property has been planned for data center use since 2010. Existing water, sewer, and stormwater infrastructure was reviewed. The rezoning aligns with the comprehensive plan.
  • Council clarified that this hearing only addressed zoning and platting, not the specific data center project.
  • Public comment: A resident asked about acreage and future use; staff explained it consolidates lots into one.

Public Hearings 5–8: Data Center Code Amendments

  • City Manager Brenda Jensen presented the proposed amendments: a new definition for data centers, limiting them by conditional use permit (CUP) in BP, M-1, and M-2 districts; a 10-page set of supplemental regulations including 1,000-foot setback from residential, 100-foot building setback, 50-foot landscape buffer, closed-loop cooling system, sound limit of 55 dBA LDN at property line, annual reporting, and third-party studies. She compared water use (2–5 million gallons/year) to other local uses (e.g., Yanney Park splash pad uses 25 million gallons/year; a golf course uses 4.3–5.5 million gallons per hole). Power costs are protected by state law (LB 1010) requiring large users to pay for infrastructure.
  • Mike O’Brien (City Attorney) explained that a moratorium is a pause, not a ban, and that prohibiting a lawful use is very difficult. He confirmed the enforceability of CUPs, which can be revoked for noncompliance.
  • Council members expressed gratitude for the advisory group and the thorough process. They noted the regulations are likely the strictest in Nebraska.
  • Public comment: Several speakers supported the regulations; Dan Javens raised water and sound concerns. Council responded that the code addresses evaporative cooling (not allowed) and that sound is measured with a weighted average.

Public Hearing 9: Conditional Use Permit for Horizon 1 Data Center

  • Craig Bennett presented the site plan for Horizon 1 on 69 acres (including existing MARA crypto mine). The project includes two buildings (Phase 1 and Phase 2) with potential additions. It reuses existing 100 MW power capacity and requests additional 168 MW (total 268 MW) with expected availability in 2029–2031. The closed-loop cooling system consumes ~1 million gallons/year (Phase 1+2) plus 2 million gallons/year for irrigation. Screening walls (55 ft tall) and setbacks meet the new code. The architectural design uses agricultural vernacular with metal panels.
  • Ryan Fold (SDV) and Ryan Luthman (DLR Group) presented building details: 30 ft tall pre-engineered metal building, data halls, office space, and mechanical yards. The project will achieve two Green Globes certification.
  • Questions addressed noise mitigation (screening walls, new chillers), timeline (construction Nov/Dec 2026, operational March 2028), fire response, and generator testing (54 backup generators; testing limited by code).
  • Public comment: Jacqueline Peterson and others raised water and noise concerns; Ibrahim asked about future water use, power costs, jobs, and noise enforcement. Council noted no minimum job requirement but highlighted 59 permanent jobs at full build-out and $13 million annual payroll.
  • The council moved to approve the CUP unanimously.

Public Hearing 10: Waterline Easement

  • Sarah Son (Utilities Director) explained the permanent 10-foot waterline easement from Kearney Public Schools for a relocated fire hydrant at Sunrise Middle School. No public comment. Approved unanimously.

Regular Agenda: Purchase and Sale Agreement & Community Benefit Agreement

  • Brenda Jensen presented Resolution 2026-103: purchase of 72.45 acres by Horizon 1 for $7,103,010, with a 10% deposit, 60-day closing, minimum $300 million in Phase 1 construction, and repurchase provisions if construction does not start within two years.
  • Resolution 2026-104: Community Benefit Agreement includes: $250,000/year for 5 years to Central Community College (mechatronics), Kearney Public Schools (STEM), and Hot Meals USA (capital project); waiver of existing lease rebate ($2 million/year to city); estimated $14 million/year in electric lease payments at full build-out; $20 million/year in property taxes (to county, schools, etc.); 59 permanent jobs; veteran and local hiring preference; water stewardship partnership; and quarterly/annual reporting.
  • Public comment: Terry Kraft asked about benefits; staff summarized. No further comment. Both resolutions passed unanimously.

Other Regular Agenda

  • Open account claim to University of Nebraska at Kearney for $2,000 was approved (Moore abstained).

Key Outcomes

  • Unanimous approval (5-0) of Ordinance 8816 (rezoning 96.04 acres to BP), Ordinance 8817 (vacation of Lot 1, Block Two), Ordinance 8818 (vacation of portion of Tech One Boulevard), and Resolution 2026-99 (final plat for Tech One Fifth Subdivision).
  • Unanimous approval (5-0) of Ordinances 8819–8822 (data center code amendments: definition, use matrix, supplemental regulations, parking).
  • Unanimous approval (5-0) of Ordinance 8823 (conditional use permit for Horizon 1 data center).
  • Unanimous approval (5-0) of Resolution 2026-100 (waterline easement).
  • Unanimous approval (5-0) of consent agenda items 1–4, consent ordinances 8824–8826 (Golf Advisory Board code amendment, public safety bonds up to $5,075,000, salary ordinance).
  • Unanimous approval (5-0) of Resolution 2026-103 (purchase and sale agreement).
  • Unanimous approval (5-0) of Resolution 2026-104 (community benefit agreement).
  • Approved (4-0-1 abstention) open account claim to UNK.
  • All votes were roll call; Mayor Nikkila, Vice-President Buschkoetter, Council Members Moore, Schmidt, and Kotsiopulos voted aye on all except Moore abstained on the UNK claim.

Meeting Transcript

And for a moment of silence. All right, please join me in the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands under indivisible with liberty and justice for all. In accordance with section 841412 of the Nebraska revised statutes, a current copy of the open meetings act is available for review as posted on the wall of the council chambers. Peggy, please take roll. Mayor Nicola. Here. Okay, we have uh no oral communications and no unfinished business. So we're gonna start with public hearings one through four. And public hearings one through four can be discussed together but voted on separately. They pertain to the application submitted by Miller and Associates for the development of Tech One Fifth Subdivision Planning Commission recommended approval, Craig. All right, I'll just move those things a little bit there. Good evening. My name is uh Craig Bennett, 1111 Central Avenue here tonight, and I'm here to represent uh the city of Kearney on behalf of uh the subdivision, which is one of the first public hearings that we have here to be known as Tech One Fifth Subdivision. So the property that we're looking at tonight, we're looking at it both from a final plat and then from a rezoning standpoint as well. So the property is located as shown on here on the north side is 56th Street, on the west side is Antelope Avenue. Uh this is the MPPD substation and the expressway for orientation. So what's shown in the red boundary that encompasses all of that with the exception of this parcel here is up for rezoning tonight. Um and the yellow portion is the portion that we'll be walking through, which is uh the final plat. So I thought I would take this back just a little bit, but just to remind everybody that in 2010 was when we first looked at this site and when we done an ULTA survey for this property, um, specifically for industrial park data center. And so it's kind of kind of interesting to see us. Here we are 16 years later, and um we're with another phase of a data center on this site. Um at that particular point in time. This happened to be the slogan which I still kind of like, um, where the high tech uh meets the high plains, and that was what we had when we were promoting um the data center that came here to look at our site. And as I've said before, it seems to be like that's where we got second in the Super Bowl. Um, and so uh anyway, we were selected as Carney was selected as a as a sole city to represent Nebraska for that particular data center project. So it was quite an accomplishment for us to have as a community on our record. Um at that time, too, was when we created the BP zoning designation, a business park zoning designation that allowed specifically allowed data centers. So since that time, since 2011, uh the zoning to allow data centers has been in place over this parcel here. So that is the zoning map from 2011. Um additionally, at that point in time, we also created um six five-foot easements that encompass the site starting at 56th Street, and they ran south to a carrier hotel, carrier hotel, not a place for somebody to reside, but it's where uh the fiber infrastructure uh is located in a left up there and then does loop the site there. And so those easements have been in place again, specifically for a data center on this particular parcel. Um moving forward to today. This is the current or effective zoning map that's in place today. And so what you see uh by the red boundary that you see here, with the exception of where the crypto mine data center is located at um is a BP PD plan development overlay district on top of that. Um it includes the the existing law office here, which they're uh um also a part of this rezoning where um the rezoning that we're asking for tonight would be to change it from BPPD to straight BP. Um further, furthermore, you'll see later with the conditional use permits provide um the overlay district that the PD would normally do. Um the comprehensive plan, the effective comprehensive plans future land use map um currently has that as BP, so no change or amendments need to be made to the comprehensive plan for this rezoning request from an infrastructure feasibility standpoint in looking at this final plat. The yellow boundary here represents the area that we are looking at vacations and replating, and I'll kind of walk through those. So currently, right now we have a 16-inch water main that traverses along 56th Street and then is brought down into the subdivision on Tech 1 Boulevard. It follows global drive and then back out and terminates with the terminus point on both the west and the east portion of that. The project that we have tonight will show connectivity of looping that back through in circulation. So we have uh wonderful water infrastructure that was made available as part of the subdivision and the creation of taking the 16-inch water main from east to west from the high pressure system. The sanitary sewer map that I have here shows that we have sanitary sewer that traverses southerly along along this corridor here, and then 56th Street, and there's a 27-inch sanitary sewer main that's along the west side of the property. So that 27-inch sanitary sewer main will serve an area that extends out into this property about where that ditch is at. So there's current infrastructure here that um was was built and extended to serve which was at that time expansion of software company now, the law office that sits there. Um around the neighborhood, there's also existing gravity sanitary sewer that that goes easterly and uh traverses back up around uh the vet's home from a stormwater standpoint or surface water drainage there. The blue boxes on here represent the inlets that are currently in place and provide stormwater direction and conveyance for stormwater from the runoff of the lots and the streets, and there's a ditch that was dug here by which we were planning to if we had to put this road in here, which would be a tech one boulevard link, um that ditch would be replaced with stormwater pipe and then be filled in with the project that we have here. Um that ditch will no longer be needed. Um, but the stormwater conveyance then goes to the stormwater outfall channel located in the NRD outfall channel that conveys itself all the way to the Wood River Valley Basin.

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