A data center will not be built on Pekin's Lutticken Farms property.
That was the message delivered Monday by City Attorney Jim Vasselli to the Pekin City Council, both in plain language and legal terms, after Mayor Mary Burress read a letter from attorneys for New York-based data center developer Western Hospitality Partners [WHP].
"We are no longer under contract with WHP or any affiliate. The contract has been terminated on their own volition," Vasselli said. "It's a clean break. This contract is over. It's terminated. It's done. It's a stake in the heart. Let's use that analogy."
The one-page letter, sent to Pekin City Manager John Dossey and Vasselli from Rachel Schwarz of the Chicago law firm of Patzik, Frank & Samonty, said WHP is terminating its agreement with the city to buy 321 acres of the 1,000-acre Lutticken Farms property for $4.5 million [$14,000 per acre] before the end of the company's due diligence period.
The address of the land WHP wanted to purchase is 3528 Edgewater Drive.
The city will need to return $85,000 in earnest money to WHP, "which I'm sure this council will be more than happy to authorize [me] to do," Vasselli said.
Vasselli assured council members the city is safe from a lawsuit from WHP because of the way the termination was handled.
Burress announced March 9 that will city will not be moving forward with the data center project because it was not the right fit for Pekin.
She was one of five members of the seven-member council who said publicly that they were opposed to the data center.
Council member Karen Hohimer added her name to the list of data center opponents Monday.
She said she didn't want to make a public announcement about her decision, made in early February, because she feared it could put the city in legal jeopardy.
John Abel is the lone council person who hasn't publicly stated his position on the data center.
Despite the council majority's opposition, the city was allowing WHP to move forward with the data center development process that would have begun with a request for a rezoning of the designated location, currently zoned agricultural.
"I know that people were frustrated because we [city officials and the council] were being quiet, but we wanted to make sure we were doing things in the proper manner," Burress said.
Peg Phillips, who was named mayor pro-tem Monday by Burress, said she was relieved the data center wasn't going to be built, "but killing it here isn't enough," referring to data center discussions in nearby Delavan.
Even though news of WHP's interest in purchasing the portion of the Lutticken Farms property was first announced by city officials early last year, opposition to the facility exploded early this year, mirroring similar efforts across the country.
The council meeting room at Pekin City Hall was often filled to capacity, forcing dozens of audience members to stand in the lobby.
Not one person who spoke at a council meeting supported the data center.
A Facebook group, Tazewell County Data Center Opposition, was formed by organizer Julianne McLaughlin and now has more than 6,200 members.
Data center opponents told Pekin council members at meetings and in conversations and emails that they feared the data center would cause noise pollution, environmental problems, raise energy costs and result in water supply issues.
They also disputed claims that the data center could generate as much as $20 million annually in property tax revenue for the city and create more than 100 full-time jobs.
The location of the data center, in an area with natural beauty with residents living nearby, also was a concern.
The letter from the Chicago law firm to Vasselli and Dossey was tucked into the council meeting's consent agenda, which normally is populated with routine items.
Vasselli's discussion of the letter was moved to early in the meeting, before public comment and prior to the consent agenda vote, which was unanimous.
With the data center out of the way, the city's next assignment is signing up developers for the Lutticken Farms property that was purchased by the city for $14 million last year from Mary Jo Brundrett.
Residents have said they're willing to help with that process. Burress said developers have expressed interest.
The first payment of $1.2 million for a $12.5 million loan the city took out from Morton Community Bank to buy the Lutticken Farms property is due this month.
