The city of Oregon approved a purchase agreement to sell 170 acres of property in its industrial park for $17.3 million for a data center company.
The agreement is with Capacity LLC., a site selector. It would in turn sell the property to the data center company if the project moves ahead, City Administrator Joel Mazur said.
The site is in the northwest corner of the industrial park at Corduroy and Wynn roads, Mr. Mazur said.
“This is an incredible opportunity for the city and our community. The city and schools would greatly benefit from landing a project like this,” Mr. Mazur said.
“Data centers typically don’t create a lot of full-time jobs. But they do produce a tremendous amount in property taxes in terms of valuation of the property,” he said.
Mr. Mazur described data centers as “large buildings that house IT equipment, such as servers.”
The site is attractive to a data center because of its access to power and large transmission lines, Mr. Mazur said.
“We have that. It’s the biggest component to making our site one of the best sites around our area and region for a data center,” he said.
Mr. Mazur said he visited a data center with multiple buildings at a location in New Albany, Ohio.
“I went to see what they look like, if there were any concerns, if they create a lot of noise. All of that is unfounded,” he said. “There are no issues. They are nice-looking concrete buildings. They use decorative fencing around them, and have nice landscaping in front of the fencing. In general, the buildings look nice.”
The data center plans to do due diligence at the site before any deal is completed, Mr. Mazur said.
“There are a lot of things they have to go through to make sure the site will work for them, such as making sure they have the ability to bring in an ample amount of natural gas to the property to suit their needs,” Mr. Mazur said.
Mayor Mike Seferian said at a special city council meeting on Monday that the city has been hoping to develop the site for years.
“It feels like a dream. I keep pinching myself. Is this for real?” he said.
The project could bring in tens of millions of dollars over the years, the mayor said.
Former Oregon school board President P.J. Kapfhammer said he was “super excited” about the project.
“This is a game changing moment,” he said. “It is going to change a lot of lives if this goes through and I think there is a great chance it will happen. This might be the biggest moment in Oregon history.”
Police and fire department services, as well as the school district, will be stronger, he added.
“It will take the city to the next level. I’m so glad I have a business in the city and that I’m part of the city,” he said.
Brenda Gift of North Wynn Road said she was excited about the data center.
“This is fabulous. I’ve done research on data centers, and I’m excited. It is a best case scenario based on what I know,” said Ms. Gift, who added that she lives across the street from the site.
She hoped the property will be attractive if it is developed and that it will not feature “a chain link fence with barbed wire” around the site.
“I’m looking for the security, low traffic, and the tech possibilities, even though it won’t bring a lot of jobs,” said Ms. Gift, a teacher and self-described “tech geek.” Data centers, she added, are “clean and secure.”
“If you can make this work, we will be a good neighbor to it,” Ms. Gift said.
Councilman Dennis Walendzak said the purchase agreement “is just one step that gets us to the next step.”
“Everyone is chomping at the bit to get going on this. But I do want to caution us. We cannot have such big eyes to spend money before we have money,” he said.
Still, he noted the project’s benefits to the community if it materializes.
“This is something that is tremendous for our community,” Mr. Walendzak said. “It can change the educational direction of our school district, and our police, fire, and recreational services, things we can provide to our community that will set us apart from our neighbors.”
The city has options to buy five residential houses near the site if the project goes through, Mr. Mazur said.
“At some point, if this comes to fruition, we would need to execute those options and close on those five properties,” he said.
First Published November 8, 2024, 11:02 p.m.
