SALT LAKE CITY — A civic group that aims to hold government institutions accountable claims the board that approved the proposed Box Elder County data center violated Utah law in doing so.
At the Utah State Capitol on Tuesday, Utah Civic Compact presented findings that allegedly detail how the Military Installation Development Authority (MIDA) skirted state guidelines to fast-track the approval of the Stratos Project.
MIDA is a state agency that was created to further "economic development" in the state.
Utah Civic Compact claims MIDA adopted the plan for the proposed 40,000-acre, 9-gigawatt facility to be built in the Hansel Valley before Box Elder County had legally consented to the project.
The group also alleges that MIDA signed an agreement with the data center's development team, led by reality television star Kevin O'Leary, before the project's plans were "legally effective."
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Finally, MIDA is accused of claiming that the project promotes public health, safety and welfare without any supporting studies or analysis.
"Unfortunately, misinformation continues to muddy the facts of the Stratos Project Area creation," said a statement issued by MIDA.
Utah Civic Compact claims all its allegations against MIDA are backed by public records, which the group made available ahead of its Tuesday news conference. One of those records was a recording of a county commission meeting in April in which Commissioner Lee Perry intimated that he and his colleagues had only recently been made aware of the data center plans.
"The commission has not been sitting on this for months. This started back in January, February. The commission's only been made aware of it in the last couple of weeks," said Perry during the April 22 meeting.
"The thing that's so frustrating for us, for commissioners, is all of a sudden, we're brought in the last hour, and we're expected to hurry," added Commissioner Tyler Vincent at the same meeting.
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The group shared how Utah Code states a "MIDA project area plan may include private land only if the county has passed a consenting resolution." However, a plan document adopted on April 24 claims the county had given legal consent on April 26, a date the commission did not meet. Consent was not actually given by the Box Elder County Commission until nearly two weeks later, on May 4.
"Legislators think that they can retcon the law to protect their own decisions," said Jarom Gillins with Utah Civic Compact. "I believe that is something that we are seeing here."
Utah Civic Compact also claimed MIDA violated another code that mandates it cannot enter a binding agreement with a developer until the project area plan has been "lawfully adopted." The group alleges MIDA signed the development agreement on the morning of April 24, 10 days before the county consented.
In its statement, MIDA said the actions of its board on April 24 did not approve the construction of the data center; it only put "tools in place" to review and regulate the facility.
"The project area plan speaks for itself in terms of findings, stating specifically, the plan will provide orderly development, coordinated infrastructure investment, reliable energy systems, and the provisions of essential public utilities and services necessary to support the development project," MIDA's response read in part.
FULL STATEMENT:
Unfortunately misinformation continues to muddy the facts of the Stratos Project Area creation. The taxing entities were properly legally noticed. The public hearing of the MIDA Board of Directors on April 24 clearly outlined by way of comments by MIDA executive director Paul Morris, and direction by the MIDA Board; the language of the resolution specifically states that the Plan Area approval is contingent upon Box Elder County Commission consent. The date of the Commission review was pushed to May 4 (properly legally noticed) and approval by the Commission did occur on May 4. The development agreement has not been signed for the reasons stated in the resolution. (Please see and refer to highlighted portions of the attachments below.) Finally, the project area plan speaks for itself in terms of findings, stating specifically the plan will provide orderly development, coordinated infrastructure investment, reliable energy systems, and the provisions of essential public utilities and services necessary to support the development project. MIDA continues to look forward to working with the development team on all necessary and State of Utah-required studies over the many upcoming months. In addition, the MIDA Board on April 24 heard direct testimony from the military that supports Board findings. Studies are required under the Standards and Guidelines that were adopted in order to get the various land use approvals and building permits and those standards set the criteria for approval. It is very important to note that the action of the MIDA Board on April 24 was not approving the construction of the facility - it was putting the tools in place to review and regulate such a facility as it will be designed and proposed.
