Presenters seek no city funding for feasibility work; mayor asks for 30day update
A proposal to explore development of a large-scale data center in the Herington area could have implications for Morris County, although the concept remains in its earliest stages and no property has been selected.
Gordan Schultz Applications Systems Analyst and Colby Monnington Realtor and Real Estate Broker presented the idea to the Herington City Commission during its Sept. 1 meeting, proposing that the community investigate whether it has the land, electrical capacity, fiber connectivity, water and wastewater infrastructure needed to compete for a hyperscale data center.
The discussion came during a meeting already dominated by concerns over Herington’s 2027 budget and property tax levy. Monnington said one reason the concept warranted study was the potential for billions of dollars in private investment and an expanded tax base that could help support streets, utilities, public safety and other community needs.
The presenters were careful to distinguish the proposal from an actual data-center project.
They said they were not asking the city to approve a data center, select a property, commit to large infrastructure improvements or provide taxpayer money for the feasibility work. Monington told commissioners that the initial research into possible sites, utilities, transmission lines and fiber availability would not cost the city. Schultz later reiterated that they were not asking the city for money and said they expected to be compensated by an eventual end user if a project develops.
A hyperscale data center is a large campus housing computer servers used for services such as cloud computing, artificial intelligence, banking, streaming and other digital applications. Monington said a project could require approximately 300 to 800 acres and potentially hundreds of megawatts of electricity.
Three general search areas were identified: west and northwest of Herington; northeast of the city around the U.S. 77 and U.S. 56 corridors; and the Herington Regional Airport and former airfield area.
The areas were described only as broad search zones. No specific parcels have been selected, no land- (Continued from Page 1) owners have agreed to sell, and the presenters said none of the areas can yet be considered ready for a data center.
The discussion is of particular interest to Morris County. During the meeting, commissioners and presenters noted that the airport/ former air base is in Morris County, although the airport remains associated with the City of Herington. Because the other search areas were described only generally, the exact county boundaries of potential sites have not yet been determined.
Monnington said the airport deserves closer examination because of the amount of land and its separation from residential areas. However, any use there would have to account for Federal Aviation Administration requirements, environmental concerns related to the former military property and, most importantly, whether sufficient electrical power could actually be delivered.
Power was repeatedly described as the likely deciding factor.
Monnington said the question is not simply whether electricity is available near Herington, but how many megawatts could reliably be delivered to a particular site, at what cost and on what timetable. Similar questions must be answered about fiber, water and wastewater.
He also said the group’s position is that existing residents should not see higher utility bills because the city borrowed money to construct speculative infrastructure for a private development. Any future agreement, he said, should determine what infrastructure would be needed and what portion would be paid by a developer.
Water use, noise, construction traffic, visual impacts, the conversion of agricultural land and possible tax incentives were also identified as issues that would have to be examined before any project moved forward.
The pair proposed a 90-day feasibility process. During the first 30 days, they planned to begin identifying parcels and discussing utility availability. The following 30 days would involve deeper examination of power, fiber, water, wastewater, environmental issues and airport restrictions. During the final 30 days, the goal would be to narrow the search to one or two locations and begin developing a financial model that could eventually be presented to data-center operators or site selectors.
Commissioners generally indicated they had no objection to Schultz and Monnington continuing their research without city funding.
At the end of the presentation, Mayor Eric Gares asked the pair to return sooner than their proposed 90-day timetable, requesting an update in 30 days on where the search stood and whether potential land had been identified.
The data-center discussion followed a lengthy Sept. 1 budget hearing. Herington’s revenue-neutral rate for the 2027 budget was identified as 82.82 mills. Gares made several attempts during the discussion to gain approval for a levy above the revenue-neutral rate, with early motions failing to receive a majority. The commission eventually approved a separate motion allowing a property tax levy of up to 87 mills, but the final 2027 budget was not adopted that night.
The commission also received an update on improvements planned for the wastewater treatment plant. Plans were nearing submission to the Kansas Department of Health and Environment, but officials were told long lead times for specialized equipment could push the start of construction into the spring.
When commissioners met again Sept. 15, the proposed data center received only brief discussion. One commissioner mentioned continuing public discussion about data centers, but another emphasized that nothing new had come before the city and that the proposal could still go nowhere. The commission also continued discussion of revisions to the 2027 budget, which remained at 87 mills, and scheduled a special meeting for Sept. 22 at 6 p.m. to consider adoption of the budget.