Add as preferred on Google
UMATILLA, Ore. — A pause requested by Oregon Governor Tina Kotek in data-center permitting could delay funding for homeowner tax relief and planned infrastructure improvements in Umatilla.
City officials have warned of significant financial consequences if development plans are disrupted.
Umatilla Links Homeowner Tax Relief to New Data Center Payments
The Umatilla City Council declared a local state of emergency on October 20 in response to Kotek’s October 9 directive to the Oregon Department of Environmental Quality (DEQ) concerning air and water discharge permits for new or expanded data centers. The governor’s requested pause lasts until July 1, 2027.
Umatilla says the effects could continue for two years or longer, delaying planned projects and funding. The city expects industrial developers to help pay for property tax relief tied to its voter-approved police station bond.
Delays could affect that funding, as well as plans for parks, streets, and other public services.
Also, about $12 million in developer-funded water infrastructure improvements could be cancelled. Umatilla also warned that delays in expected revenue could affect the county, school district, fire protection district, hospital district, and other local bodies.
Other Oregon Cities Move to Keep Data Centers Out
Elsewhere, North Plains is moving in the opposite direction. Its City Council voted unanimously to direct staff to begin the land-use process for a permanent data-center ban.
The city had previously considered allocating 100 acres for data-center development to increase tax revenue, but abandoned the proposal after residents strongly opposed a major expansion of the urban growth boundary.
Any prohibition would require land-use code changes, public hearings, and advance notice under state law.
Permit Reviews Can Continue, but Umatilla Is Still Exploring a Challenge
Umatilla has four data-center projects at different stages of development. According to local reporting, one is about two-thirds through the permitting process, another is halfway through, and two remain under contract.
The Umatilla County Board of Commissioners unanimously approved seeking legal guidance on the governor’s directive.
But City Manager David Stockdale said DEQ had indicated that applications could continue through the permitting process until they reached the public-comment stage, when the pause would take effect.
Kotek has said the pause will give the Legislature time to consider reforms to the data-center industry.
Be the first to comment.