Executive Summary

Development Pipeline

Industrial Projects

> Additional projects are included in the Appendix below.

Entitlement Risk

Approval Patterns

• Strategic Rezoning Support: The Council consistently supports transitioning A1 Agricultural land to "Advanced Manufacturing" (AM) to provide a cleaner buffer between residential zones and heavy industrial areas.
• Grant-Driven Infrastructure: Industrial-adjacent infrastructure, such as bridges and waterlines, typically sees unanimous support when matched by state or federal grants (e.g., 90/10 or 95/5 splits).
• Barter Agreements: The city utilizes unconventional "barter" easements where property owners donate land for industrial-supporting projects in exchange for site improvements, such as driveway relocations.

Denial Patterns

• Accessory Precedence: The Board of Zoning Appeals (BZA) strictly denies accessory structures (sheds/garages) on vacant land intended for future residential use to avoid setting precedents for non-conforming industrial-style storage.
• Majority Vote Thresholds: Recent 3-2 and 3-3 votes have resulted in procedural denials, highlighting internal division on council regarding transparency and the selection of personnel or contractors.

Zoning Risk

• Advanced Manufacturing Restrictions: While AM zoning is being applied, it carries strict aesthetic and noise requirements (max 70 dB at property line), which are frequent points of contention for industrial applicants.
• Short-Term Rental Impact: New residency requirements for short-term rental operators have created a backlog of variance requests, signaling a tightening of residential-commercial hybrid uses.

Political Risk

• Leadership Churn: The concurrent resignations of the City Administrator and Law Director, combined with a new Mayor taking office, has slowed the finalization of major Economic Development Agreements (EDA).
• Sunshine Law Exposure: The Mayor has sought outside legal counsel to investigate potential "Round Robin" violations regarding internal council discussions, creating a risk of voided past actions.

Community Risk

• Organized Coalition: "United Neighbors of Oregon" (UNO) is actively campaigning against data center expansion, citing concerns over "industrial creep," utility rate hikes, and environmental health impacts.
• Noise and Utilities: Public sentiment is highly sensitive to the perceived strain on the electrical grid and water supply, with residents demanding independent studies before construction proceeds.

Procedural Risk

• Voting Definition Disputes: Significant legal uncertainty exists regarding whether an abstention counts toward a "majority" for emergency measures, leading to the referral of major industrial extensions to the Attorney General for an opinion.
• Negotiation Delays: Critical utility studies (First Energy Load Study) have repeatedly forced 60-day to 6-month extensions on industrial purchase agreements.

Key Stakeholders

Council Voting Patterns

• Supporters: Wallenac and Hornac are consistent proponents of industrial expansion for tax base growth and funding essential services like the fire department.
• Skeptics: Acriman and Drake frequently vote against or abstain from measures they perceive as lacking transparency or being "leveraged" against public safety grants.
• Swing Votes: The Council President often functions as a procedural gatekeeper, influencing when controversial items are moved from committee to a full vote.

Key Officials & Positions

• Paul Roman (Acting City Administrator/Service Director): The primary technical driver for all industrial infrastructure; prioritizes grant-eligible connectivity projects.
• Rebecca Bennett (OEDF Executive Director): Manages industrial land assembly and developer relations; maintains strict confidentiality during negotiations.
• Mayor Stephen R. Sander: Focuses on restoring public trust through legal reviews of past council conduct while maintaining support for the data center as a revenue source.

Active Developers & Consultants

• Capacity LLC (Will Turner): Lead developer for the data center; currently navigating switchyard land acquisition and First Energy breaker specifications.
• Kleinfelder (formerly Poggemeyer): Preferred engineering firm for city-wide surveying and design of industrial-adjacent paths and utilities.
• Palmer Energy (Mark Fry): Key consultant managing the city's energy aggregation and advising on data center grid impacts.

Analysis & Strategic Insights

Industrial Pipeline Momentum vs. Entitlement Friction

Oregon is at a critical crossroads. While over 170 acres are slated for "generative AI" data centers , the project's momentum has shifted from rapid approval to procedural scrutiny. The failure of the third amendment extension signals that council is no longer providing "rubber stamp" approvals without a finalized Economic Development Agreement (EDA).

Emerging Regulatory Signals

• Noise Ordinance Strengthening: There is active discussion regarding adding "teeth" to the noise ordinance with tiered penalties to deter industrial users from violating 70 dB limits.
• State-Level Oversight: The emergence of Ohio House Bill 646 may introduce a state commission to regulate data center proliferation, potentially superseding local zoning autonomy.

Strategic Recommendations

• Site Positioning: Developers should focus on the "Windscape" parcels for infrastructure like switchyards, as these are already zoned Commercial Industrial (CI) and face less rezoning risk than A1 Agricultural tracts.
• Stakeholder Engagement: Direct engagement with the "United Neighbors of Oregon" group is necessary to mitigate litigation risk. Transparency regarding the "closed-loop" nature of cooling systems has been effective in softening some environmental opposition.
• Watch Items: Monitor the Attorney General’s opinion on the 3-2-1 data center vote; a ruling that it "passed" will re-accelerate the project, while a "fail" ruling may require a complete re-negotiation of the land sale.