News
Council Reiterates Denial of Cryptocurrency Permit – Brainerd Dispatch
BRAINERD — The company proposing to build a new cryptocurrency mining facility in Brainerd isn’t giving up yet.
After the City Council
a temporary use permit was denied
for outdoor storage units on a property in the industrial park earlier this month, VCV Digital Infrastructure now has its eye on a building. Community Development Director James Kramvik briefed the council on Monday, July 16, on the update. He said the Economic Development Authority and the Brainerd Public Utilities Commission, both of which have contracts with VCV for land and power purchases, are working to schedule a joint workshop to discuss what the council’s latest action means for the company’s future in Brainerd. The council, Kramvik said, will be invited to attend that workshop.
Council members voted 6-1 Monday to formalize the list of reasons for denial of a temporary use permit that would have allowed VCV Digital to build 26 storage containers to house their data machines and cooling towers at 1918 Thiesse Drive. Staff presented council with a list of reasons for denial, as previously discussed by both council and Planning Commission members. The reasons stated include:
- The project is expected to consume 25 megawatts of energy.
- The project fails to significantly increase local employment, as only 16 jobs are expected to be created.
- It is expected that one job will be created for every 1.5 megawatts of energy consumed, which is not an efficient use of the city’s resources.
- More than 100 homes could be powered for every employee working at the facility. The high energy demand is potentially detrimental to the city’s ability to prepare for future housing needs, as the 2020 Crow Wing County Housing Study said 4,800 additional units must be created between 2018 and 2033 to meet regional demands.
- The facility would operate 24 hours a day.
- A sound study shows that nearby residential properties could experience nighttime noise levels in excess of 50 decibels A, a measurement of how loud a sound is perceived by the human ear, a standard set by the Minnesota Pollution Control Agency.
An additional reason for denial initially listed was related to carbon neutrality, stating: “The power for this facility would be purchased from the grid and will be the city’s responsibility in the future when the city is required by the State of Minnesota to use completely carbon-free electricity sources by 2040. The city uses hydroelectric power and recently partnered with AEP to build solar fields to become more carbon neutral. This facility significantly increases the city’s energy needs and will make it significantly more difficult to meet the state requirement in the future.”
Councilman Jeff Czeczok asked that part be removed, as he said it was not true. He said VCV Digital purchased renewable energy credits from BPU, making it carbon neutral, since carbon neutrality is based on how energy is created, not how it is used.
“I have a feeling we are sliding down a slippery slope,” Czeczok said.
When asked if he had anything to add, Acting Director of Public Services Patrick Wussow said no. When asked if he disagreed with Czeczok’s statements, Wussow said no.
Czeczok proposed to approve the reason for the denial, eliminating the part relating to carbon neutrality.
Councilwoman Kara Terry believes the language is broad enough and would not support the motion.
“For example, ‘The city uses hydroelectric power and recently partnered with AEP to build solar to become more carbon neutral,’ that’s a given. It’s not debatable. No one has to be an expert on carbon neutrality to say that,” Terry said. “I would leave that whole section out there. I think it makes sense to reiterate that and strengthen our denial of this IUP.”
Council chairman Kelly Bevans said she would support the motion as she believed it reflected the will of the council and what the majority of councillors believed was best for the city.
Terry was the only one to vote against the amended list of grounds for denial, which does not include the part on carbon neutrality.
The VCV has 30 days from the denial of the permit to appeal to a district court.
THERESA BOURKE can be contacted at
theresa.bourke@brainerddispatch.com
or 218-855-5860. Follow her on Twitter at
www.twitter.com/DispatchTheresa
.
Theresa Bourke began working at the Dispatch in July 2018, covering Brainerd city government and area education, including Brainerd Public Schools and Central Lakes College.