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Councilmember Riley supported changing data centers from a permitted use to a conditional use. <br />He believed requiring a conditional use pen -nit would ensure that a proposed facility had to come <br />before the City, allowing Council and residents to ask questions and giving the City greater <br />control over whether a particular proposal was appropriate. <br />Councilmember Buscher also supported the conditional -use approach, noting that it would not <br />close the door on data centers but would allow the City to evaluate each proposal before <br />approving it. <br />Councilmember Specht preferred prohibiting data centers rather than establishing a conditional - <br />use process. <br />Councilmember Olson supported allowing data centers through a conditional use permit. <br />Community Development Director Hanson proposed conducting additional research and <br />returning to Council with more detailed information before staff began drafting ordinance <br />language. She explained that this would help Council become more familiar with the issue and <br />provide direction on the standards that should ultimately be incorporated into an ordinance. She <br />would also work with the City Attorney. <br />Councilmember Buscher offered to provide examples of ordinances adopted by other <br />communities. <br />Councilmember Buscher suggested that potential standards could address responsibility for <br />necessary infrastructure improvements and energy requirements. She opposed imposing a <br />moratorium, noting that data -center construction could provide employment and economic <br />activity and that state regulations already addressed significant aspects of their operation. She <br />identified water use, energy consumption, and noise as the principal concerns she had heard and <br />believed those matters could be addressed through appropriate regulation rather than a <br />prohibition. <br />Mayor Heineman summarized that a majority of Council supported directing staff to research <br />standards for allowing data centers through a conditional use permit, with Councilmember <br />Specht opposed to allowing the use. Staff would conduct additional research, consult with the <br />City Attorney, and return to Council before preparing final ordinance language. <br />2.03: Discussion Regarding Union Contract Negotiations (Closed Session) <br />Mayor Heineman introduced the discussion regarding union contract negotiations and announced <br />that the discussion would be closed to the public. <br />Administrative Services Director Lasher explained that the closed session would update the City <br />Council on negotiations with the City's bargaining groups. Pursuant to Minnesota Statutes, <br />Section 13D.03, Council reached consensus to enter closed session. <br />City Council Work Session / September 8, 2026 <br />Page 7 of 8 <br />