City Council - workshop

Thank you. Meeting. Sure. Amen.

Thank you for coming to our study session. We're going to go ahead and start and all the council are here. So we will go ahead and start and that is Larry will be presenting.

Yes, Madam Mayor, members of the council, thank you for the opportunity. As you can see, I've got on the screen the topic that is included in today's study session. I know there's a lot of new terminology here in regards to a specific scenario, situation that we're dealing with as a city. And so I've put together a PowerPoint presentation to ultimately walk us through the dialogue tonight. The mayor and council will certainly have some questions, but I think it's important to note that the purpose of the study session this evening is to provide a background and overview of the Proposition 207 notice of claim arising from the city's adoption of the zoning ordinance requiring a conditional use permit for data center development and land use and to explain options available to the city for the mayor and council. This session is intended to be informational and discussion. There will be no formal action taken this evening. Staff will review how we arrived at this point, explain our legal process under Proposition 207, and present the proposed plan for a resolve. Formal consideration is scheduled for a regular council meeting of Monday, August the 3rd. And so, a bit of the background. I this is just a bit of a overview of what we're going to talk about this evening We're going to talk about the background and history in this these particular land holdings the location of the property the zoning amendment Proposition 207 the private property rights act in the context to this circumstance here tonight we're going to talk about proposition 207 notice and that has been filed, Proposition 207 waiver and conditions, which is one of the statutory allowances as an option for dealing with a Proposition 207 claim. And then in closing, I'll speak specifically to our Engage Casa Grande website that has been created and really talk about how individuals can make comment on this process. This is just a map, Mayor and Council, that really talks about the timing of this in one very straightforward process. As you can see from the time that Prop 207 was approved, it's been 20 years since that period of time. I WANT TO GIVE THE MAYOR AND COUNCIL JUST A CONTEXT OF THE TIMING IN A MAP FORM, IF YOU WILL. BUT WE'LL SPEAK A LITTLE BIT ABOUT WHAT'S BEEN TRANSPIRING. OBVIOUSLY IN 2006 IS WHEN THE PROP 207 WAS ORIGINALLY APPROVED BY THE VOTERS. BUT FAST FORWARDING TO 2024, LATE 2024, EARLY 25, THE CITY BEGAN REVIEWING HOW DATA CENTERS SHOULD BE REGULATED UNDER OUR ZONING CODE. At that time, data centers were becoming much more common throughout Arizona, but our zoning code did not specifically identify them as either a permitted or a conditional use. Because of the size and unique operating characteristics of these facilities, staff believed that the city needed to establish a clear policy before applications were submitted. AS PART OF THE PROCESS, STAFF RESEARCHED HOW OTHER ARIZONA COMMUNITIES WERE ADDRESSING DATA CENTERS. WE FOUND THAT MANY CITIES WERE UPDATING THEIR ZONING CODES TO PLACE DATA CENTERS IN INDUSTRIAL AREAS AS WELL AS IN SPECIFIC DATA CENTER ZONING DISTRICTS. THAT WAS BECOMING A NEW APPROACH TO DATA CENTERS. We found that in many cases, the require of additional review, additional review would be necessary in these new zoning districts concerning concerns related to infrastructure, primarily driven by water use, electrical demand, noise, and compatibility with surrounding areas. Obviously, if you Google today and go onto the internet, you find that cities throughout the nation are dealing with this type of research and resolve. In our particular case in Arizona, obviously, we have Prop 207, Proposition 207 that we need to deal with. The city's goal was never to encourage or discourage data centers. Instead, our goal was to ensure that if these facilities were developed, they would be located in an appropriate industrial area supported by adequate infrastructure and developed in a manner that protects the community's long-term interests. This approach is consistent with the city's 2030 General Plan, which encourages industrial development while also minimizing impact on surrounding properties and protecting community resources. And so fast forward to 2025, staff proposed amendments to the zoning code that would specifically recognize data centers as an industrial use. During that time, two property owners requested a formal zoning interpretation. asking whether a data center would be allowed on an industrial I-2 zone property under the city's existing code. And just to give everybody a bit of a context, I do have maps of the locations. You can see there are two property owners. They have multiple parcels in these areas. a total of about 480 acres. But this is the holdings of one property owner. You'll see it's north of Gila Bend Highway. You'll see that it is west of Ethington Road and east of Bianco Road. The second property owner owns the adjacent parcels to the north along Ethington Road, south of Clayton Road, east of Bianco Road. There is a small component that is actually in between these two, if you will, a small holding, roughly 80 acres that I'm aware of that APS has acquired to build a substation in between those two areas there. AFTER REVIEWING THE REQUEST, THE PLANNING DIRECTOR DETERMINED THAT BECAUSE THE ZONING CODE DID NOT SPECIFY ADDRESS OR SPECIFICALLY ADDRESS DATA CENTERS, THE PROPOSED USE WAS MOST SIMILAR TO A WAREHOUSE AND THEREFORE COULD BE CONSIDERED A PERMITTED USE IN THE EXISTING I2 ZONING DISTRICT. IT IS IMPORTANT TO NOTE THAT THE AREA AROUND ADJACENT TO THIS AREA IS PRIMARILY I2 ZONING OR HEAVY INDUSTRIAL ZONES. That interpretation also noted that staff was already preparing zoning amendments that would specifically address data center that would be scheduled for the Planning and Zoning Commission and the Marin Council a consideration later that year But just to give you a context that would have been this letter was written in July of 2025 Planning and zoning considered the first of the amendments in August and Marin Council considered them in your first hearing in September of 2025 The proposed zoning amendments were then reviewed by the Planning and Zoning Commission, which voted unanimously to actually have data centers as a permitted use in industrial zoning. When the amendments reached the council in September of 25, the city council, the Marin City Council, modified staff's recommendation. Rather than allowing data centers as a permitted use in the industrial zoning district, the council required that future data centers obtain a conditional use permit. That particular ordinance was approved in October unanimously. During that discussion, the mayor and council, I believe, specifically established that protocol to better understand many of the environmental issues dealing with power, water, noise, and the like. The purpose of that change was to provide additional public review and allow the city to evaluate issues, those issues that I just outlined on a case-by-case basis. The ordinance established that requirement and was adopted in October 6th of 2025. So if I can, Madam Mayor, members of the council, move to the Proposition 207 claim. Remember, we've got a zoning interpretation letter that was written, and we've now required a conditional use permit. Several months later, in February of 2026, the property owners filed a notice of claim under Proposition 207. Proposition 207 is an Arizona law approved by the voters in 2006. It was a voter-initiated ballot measure. It passed by 64.8%. It allows property owners to seek compensation if a land use regulation reduces the value or the use of private property. The property owners argued that the interpretation letter allowed a data center as a permitted use and that changing the code to require a conditional use permit reduced the value of their property. The claim requests approximately $140 million in aggregate, roughly $70 million per each area of land holding in compensation, but most importantly, there was an alternative to enter into a waiver from the conditional use permit requirement that was approved under the text amendments. And if I can now, Mayor and Council, I'd like to spend just a, if there's no questions on Prop 207 claims, I'd like to spend just a few minutes on the actual options that are available under statutes related to Proposition 207. Under Arizona Private Property Rights Protection Act, Proposition 207, property owners may be entitled to compensation if a new land use law restricts a use that was previously allowed on their property. As a result, reduces the property's fair market value. Simply put, Proposition 207 is designed to protect private property owners when a government land use decision limits how their property can be used or developed in a way that diminishes its value. And so there are options for the city in this particular claim. The first option that would be allowed would be repealing the zoning regulation entirely. The second would be paying the compensation, the devaluation of land. I do think it's important to note that that number is the claimant's projection of the devaluation. Obviously appraisals would need to be done and the like, but from our perspective, when staff has done the research, and had dialogue with appraisers that handle industrial type development, they will tell you that there is a sizable difference in value between data center land and just your normal industrial land uses. But we have not verified the 140 million, I think is the most important component of that. We can deny the claim and defend the matter in court and or we can grant a waiver that applies only to the affected property, much what was requested in the initial 207 notice. After evaluating each option, staff does not recommend repealing the ordinance. We believe that the conditional use permit process remains an important planning tool because it allows the city to review large data center projects individually. and apply project specific conditions that protect public infrastructure and community resources. Staff also does not recommend authorizing compensation. The owners, as I said, the owners have indicated the loss of value of roughly approximately 140 million. And obviously while the amount of any potential compensation claim depends on a competent appraisal evidence comparing the property's fair market value immediately before and immediately after the regulatory agency An obligation of this magnitude would exceed the city's available unrestricted reserves and would likely require the city to evaluate a combination of financing strategies, including the use of available fund balances, budget reallocations, reduction or deferrals of capital improvement projects, potentially the issue of debt, and certainly the adjustment of future operational expenditures in future years. If the city denies the claim, litigation would likely follow. While the city has legal arguments that it could present, no one can predict the outcome of the litigation. If the property owners were successful, the city could face substantial financial judgment that would severely limit service delivery to the citizens in addition to paying significant legal costs to defend that. And ultimately, where staff actually is, the plan that we are suggesting this evening for council consideration is a operational, is a waiver with operational restrictions Because of these factors, staff has entered into discussions with the property owners regarding a possible waiver as requested in their Proposition 207 notice. Discussions of a proposed, discussions of a proposed waiver and the framing of that waiver continue between us and the property owner slash developer. These discussions have been productive and suggest that the proposed property specific Proposition 207 waiver with binding operational restrictions could similarly serve as conditions that would have been included in a conditional use permit. These conditions would likely include language on water usage, power generation, utility usage, noise mitigation, decommissioning requirements, and community benefits. Many of these concerns were identified by the mayor and council when you considered the amendments to the zoning code. We anticipate that the final terms of that proposed settlement would be finalized and available for the mayor and council's consideration at the August 3rd regular council meeting. The waiver would apply only to the property involved in this claim. IT WOULD NOT CHANGE THE CITY'S ZONING CODE AND IT WOULD NOT APPLY TO ANY FUTURE DATA CENTER PROPOSALS. THE PROPOSED PROJECT WOULD STILL BE REQUIRED TO COMPLY WITH ALL APPLICABLE FEDERAL, STATE AND LOCAL REGULATIONS INCLUDING BUILDING, FIRE, ENGINEERING UTILITY AND ENVIRONMENTAL REQUIREMENTS. And I do have a couple of other items I want to cover, Mayor, but I want to really close the discussion on the 207 matter so I can entertain any questions. But staff believes, I believe, that pursuing a binding waiver with operational restrictions provides the best balance between protecting the city's legal and financial interests while maintaining the council's long-term policy for future data center development. Approving a property specific Proposition 207 waiver would resolve the current claim without changing the city zoning regulations and future data center projects would still be required to obtain a conditional use permit and undergo individual review by the city. And so why don't I pause there. Mayor, I do want to talk about economic impacts just very briefly. We are planning a more in-depth discussion at the August 3rd council meeting, but I do want to touch on that. I also want to touch on the next steps as well as the opportunity for residents to comment on this particular topic.

Any questions at this point? I mean, we'll probably have more when he's done, I'm sure, but anything at this point?

Just to make, on the 207 part, I've done some research. You've helped me educate, but there's some cities that are just doing just 207 claims right through administrative purposes with no public hearings or anything. Is that going on in the state right now?

Council Member Herman, thank you for reminding me of that. I had it written on my note here to outline. The Prop 207 issue is a statewide issue to all governments, municipalities, the counties, state, so on and so forth. And it is an option under statute for waivers to exist. And yes, your point is well taken that There are a number of municipalities, many in the valley, that ultimately have incorporated a waiver process under their code. That if a Prop 207 claim is filed, then ultimately, administratively, they will take action on that. It does not make its way to the elected body like it does here in Casa Grande. The reason that it is set up that, I shouldn't say the reason it's set up that way, in Casa Grande, we do not have the specific components of our city code to allow for that waiver to be approved administratively.

Yeah, I know in Phoenix, right in the middle of downtown Phoenix, they've just approved one or two that I'm aware of right next to Chase Field and all kinds of stuff, right? And it's just done administratively, and there they are.

What staff found in our research going back to 2024 is that a number of cities had more of a broad zoning district code that would allow data centers to transpire in a variety of zoning districts. And ultimately that was part of the initial dialogue that really ensued in 2025 of these cities wanting to essentially move the land use into areas that were more industrial base, if you will. And yes, I am aware of the fact that the city of Phoenix has had a couple of Proposition 207 claims. My understanding is that there's been a total of six that have been approved in the valley, four in one city, two in the other. And ultimately, there's additional claims that have been filed that cities are evaluated in the process today. But as you can tell, the environment has changed related to data centers. And certainly understandably, we understand why with the environmental issues, the impacts on power and water specifically around the nation. Each state is going to have a different set of statutes that they're trying to navigate. And obviously in Arizona, the Proposition 207 waivers is one of those options.

Yeah, just important to note that here, we thought it was important to put them in the industrial areas so that they would not end up in neighborhoods or close to houses if they go through the process when we did our zone change. And some people said, you know, it's been going on a long time, but I mean, things have changed so rapidly in the last year. You know, that's why we're dealing with this now. So I appreciate you guys. doing this and educating everyone.

What we have found is that they are changing daily at this point in time. And I know that cities across the nation are grappling with this. I also recognize that data centers certainly have a economic value in today's society and the like. But you have to find a mechanism to balance the environmental issues with power, water, decommissioning, and the like.

And Larry, I know you talked about the conditional use and I wanted to see if you can just explain that process a little bit more for those that aren't familiar with it and why we put that in the change when we decided to amend the code, just what that means if someone has to go through a conditional use permit.

Right, so ultimately that is another layer of public participation process. A site plan application needs to be filed with our planning department. Ultimately they will evaluate for a variety of elements similar to what they would with other, in this case, industrial user types. they would actually evaluate the potential of various conditions related to that specific land area, the compatibility, and perhaps other elements that would be under their purview. And at that point, it would come before the Planning and Zoning Commission for their consideration, if the Planning and Zoning Commission were to approve the conditional use permit. And quite frankly, it's something that we have a couple of Planning and Zoning Commissioners in the audience, they're aware of the fact that they've and particularly in our industrial area, have processed these CUPs for various industrial uses, but ultimately requires another public hearing and a public process is really what that would entail. IF THE PLANNING AND ZONING COMMISSION APPROVES IT AT THAT POINT IN TIME, THE SITE PLAN IS FINALIZED AND ULTIMATELY DEVELOPMENT CAN OCCUR. IF THE PLANNING AND ZONING COMMISSION DENIES THE CONDITIONAL USE PERMIT, THEN THE APPLICANT HAS THE OPPORTUNITY TO APPEAL THAT BEFORE THE MAYOR AND COUNCIL.

And I just wanted you to make sure that you highlighted exactly what that process is. And that's really when we were, when it came before us, that was why we wanted to put a conditional use permit on this so there's, you know, we can evaluate it case by case.

Mayor, I will say that I think it's important for everybody to recognize that the entitlement component on these types of projects is really just the first step in the ladder. Individuals that are dealing with data centers will tell you that they ultimately, entitlement is a must for them to take on the costs and expenses of the studies of determining how they're gonna deal with their power, deal with their water, so on and so forth. The idea, this particular issue tonight is a land use issue. It's a threat of litigation. That does not mean that a data center is going to be built tomorrow. There are still processes that would transpire.

Right, okay, thank you. Anything else at this point? Okay, we'll have you go ahead and continue.

Mayor, again, I want to touch briefly on a couple of additional topics, starting with the economic impact. For years in Arizona, there was an understanding that data centers had a significant economic impact for municipalities with very little use of services. They don't have heavy truck traffic and the like. Obviously, with the environmental concerns that are being expressed today, that's part of the changing landscape that we're dealing with. I believe that, and I did not bring the data with me, but I believe there's 86 data centers. I believe there's 86 data centers in the state of Arizona today. At one account, Arizona was number four for data centers in the nation. They typically have lower number of employment jobs but they typically are a higher paid industry. And so there has been a bit of research done on just data centers in general, the impact that it would have on our local community if something were to build here. And really what's the primary driver to that is the fact that they are investing billions of dollars in these projects. And in fact, really have a sizable impact primarily on our assessed values in the community and our primary property tax and secondary property tax rate. In something similar to a project that would be on a 480 acre parcel, calculations have been, analysis have been run that would suggest that that would generate roughly $6 million in property tax revenues to the city on the primary property tax side. Obviously it would have a significant impact on our secondary tax rates, very likely bringing those down. the taxes that we collect to pay for the debt for the capital projects that we have. So $6 million a year, it would produce roughly $23.9 million a year to Pinal County, school districts and other special districts in Pinal County, and roughly $4.5 million to the state of Arizona. As I said, we've asked an economist to attend the meeting on August the 3rd. My thought is that we will have individuals from the power companies, potentially from the water company, would have the potential developers as well as an economist to be able to speak specifically to the mayor and council on a project of this nature. But I wanted just to give a bit of a highlight on that for this particular project. I also want to talk briefly, Mayor, about our next steps, because as I said earlier, this is for information only. We ultimately continue to negotiate the waiver. In fact, Mayor and Council will be in executive session later tonight to continue the dialogue on that front. BUT ULTIMATELY THE THOUGHT IS THAT WE WOULD GIVE THE INFORMATION TO THE PUBLIC TODAY. WE'VE ALSO ESTABLISHED A WEBSITE SPECIFICALLY ENGAGED CG THAT ULTIMATELY ENGAGED CASA GRAND THAT ULTIMATELY THE PUBLIC CAN GET FACTS RELATED TO WHAT I'VE DESCRIBED TONIGHT ON THE TIMELINE OF THIS. THEY CAN GET INFORMATION REGARDING FAQs. related to potential projects of this nature to provide them with facts versus things that may be uncertain. And so on August the 3rd is when mayor and council will be asked to consider the topic in a formal action. RESIDENTS CAN FIND THE ADDITIONAL INFORMATION AS I SAID IF YOU GOOGLE ENGAGE CASA GRAND IT WILL POP UP YOU CAN GO RIGHT TO IT THERE'S THE THE INFORMATION THAT I'VE DESCRIBED YOU CAN ALSO MAKE COMMENTS ON THAT SITE AS WELL AS EMAIL COMMENTS TO THE PIO PIO AT CASA GRANDE AZ GOV IF YOU'D LIKE TO IF YOU'D LIKE TO ADD COMMENTS ON THE TOPIC And with that, Madam Mayor, members of the council, I believe that I've covered the topic as the presentation that I was going to present this evening.

Okay, thank you, Larry. Okay, are there any questions, any more comments from the council? No questions?

I just wanted to let everybody know thanks for coming tonight. I'm sure Lisa will have something to say as well. It's important to us, I think I can speak, is that we could have just put this on a consent agenda legally. We could have just put it on an agenda, not talked to it, but it was important to me and I think everyone else in here to make this transparent for our community so that we had time for everyone to hear about this and do their research on it like I've been doing. So it's important to get those, for us to be transparent. And it's important to find out the facts about this and not just get so emotionally involved. And there's a lot of information out there. So I hope that you look at our website as well to help point you in the direction of different types of things. And there's always good and bad about everything and a lot of points. And this one's tough because, I mean, $140 million or 100 whatever that number is that's a lot of money for the city of Casa Grande to pay I mean that would drastically affect the operations of our city even though you talked about debt financing I mean however you want to look at it it would drastically affect so that's something that weighs heavy on us here and as I said we talked about having this in I-2 always, not residential, not I-1 close, but I-2, because we saw this coming, and it was be away from houses, and it's important to protect everybody's property values. So I appreciate everyone that comes tonight, and I just wanna make a point that we are open to hearing about this, and we just wanna be transparent and let everyone know what's going on, because we're not hiding this, we're not getting behind it, but we are, you know, this is our community, all of us, we live here, so it's important for us to all hear about it, and I'm glad you guys came tonight. And after this goes on, the accountability is what's gonna be the important part of this if we move forward for these people in doing that. And so that's what we're working on at this point. But again, thanks for coming, and this is not an easy subject by any means, and I have lost a ton of sleep and hair over this subject.

Yeah, you can't afford that. Sure, Anthony.

Yeah, I'll piggyback off of that. Thank you, Larry, and also their staff. My thought process is I want to get a better understanding and educate myself, as I believe what Matt is saying. I think we all want that. And also what's best for our city in the long run. And that's our job. That's what we're here for, to help our city go in the right direction. And I believe that this is part of that, to get a better, clearer understanding what the state is requiring of us. what we need to do, and at the end of the day, it's about doing what's best for our city, and also letting the citizens of Casa Grande know this is what's going on, as you said, transparent. This is what's going on, this is what we have to do, so we can come together and have a reasonable conversation, talk about it, and move forward together as we grow with better understanding of what's at hand.

Thank you, Anthony. Bob, sure.

Yeah, I was gonna say the thing that I find particularly reassuring is that we were gonna face this challenge one way or the other eventually. And we're facing it now without the conditional use process. And it's no doubt that whether it was through that process or through the waiver process, we would have been very aggressively looking at the elements of power usage, water usage, and noise. and that's exactly what we're doing with the waiver process. The developer has been cooperative with that. They are in agreement that those three things have to be addressed, and our staff and Mr. Raines are working tirelessly towards getting that accomplished, and I'm confident that that will be addressed.

Thank you. Thank you, Bob. No, that's exactly right. And I think that, you know, when you go back to, well, we know all over the country that this is a hot topic and an issue that is very controversial. And so we've been trying to keep on top of it. You know, we all learned last year at the league some of the discussions that were happening. We continue, the staff and myself, you know, being with fellow mayors from all over the state, this discussion comes up a lot. And so, you know, but then every city's different. The city of Phoenix is kind of, they're kind of monitoring a little bit more of where data centers are going because some of them are expanding and they're going into neighborhoods, so there is hot issues with residents there. There's some cities that are begging for data centers. Some of my counterparts in cities that are like us, that are growing and bringing industry to their community, they want data centers because they understand the economic impact. and what it means to their community. So we, as Larry said, we didn't know that this was gonna really come our way, but because of where we're located, we have the natural gas line that's coming through, we knew that this was probably something that we were gonna have to address. So we took a proactive approach on how can we make sure that We're looking out for the best interests of our community, but also providing a resource that is needed. As we all continue to use our phones and use AI and everything else, we know that this resource is needed. I was proud that this council agreed, all of us, on putting conditions on it. And so we knew the importance of addressing those concerns with water usage, power, noise mitigation, and community benefits. And so that's why we did this. We thought it was important. Didn't expect that we would get this Prop 207 claim. We were all pretty disappointed. This is not really something, you know, way we wanted to go. We would have preferred those landowners to go through the conditional use because we feel if they have everything that they're saying they have, Why not go through the conditional use process? Because if they have all this, then the community is going to agree as long as they're providing the facts of what they're bringing to the project. But this is what we are faced with, and evaluating how to move forward And I have been pleased, obviously, with our staff and the landowners have been listening to the concerns and how we can move forward together. And so they have agreed to put these conditions. And so obviously they're still negotiating the final conditions, but this has been, I just want everyone to know, this is something that has been, this has been happening since February, that we've been talking through these issues. It's not something that is where handling lightly that we're just gonna push through. We are making sure that we're addressing the concerns that all of you have. We have those same concerns and questions. So we're doing research, we're talking to experts, not so much the developer or a data center expert. We are talking to the water experts, the power experts. We wanna make sure that we're getting factual information on what it means This data center comes because we don't even know for sure if a data center is going to come But we want to make sure that we are addressing those concerns We're getting factual information and we will make sure that we're providing it to you So like councilmember Herman said we could have just put this through as our you know, prop 207 claim We have to do it, you know else we're gonna have to pay 140 million dollars So but we didn't do that. We want to make sure that those the conversations um we're having conversations with the public we're providing you the information that we're getting please go on the engage cg portal it has all the factual information our pio team heather and her team have done a great job making sure they're reaching out to other cities and what they're you know what they're what they're finding what issues are it's a frequently asked questions an answer page there's a page that has the whole process on what um larry talked about where where we were why we made the decisions we made and where we are today and then there's also um an email that you can go on and and communicate ask us questions so by august 3rd when this comes before the council you know to vote we hope we can get more information from the public and also continue to share information with you as we continue to navigate through this whole process. But I just wanted to, I mean, thank you, Larry, and all the staff, Brett, it's not, hasn't been easy for us to kind of go through this, but it is what it is. But we do, in the end, we are at least, if this waiver with these conditions is approved and if this is the route we go, at least that's in there. I mean, that's what we were asking for when we voted for conditional use. And they are willing to do that. So they have to show us how they're going to bring water and power and noise mitigation and what community benefits that they're gonna bring to this city. So we are all clear on all of that. So we'll continue to get that information as Larry navigates through the final waiver. Any other questions, comments?

Just a comment. I'm really happy with the council that we did put together that conditional use permit so we can navigate that in the future for future data centers and everything like that and make sure that we have the, if we put a data center in here in Casa Grande, that's the highest quality for our community and for our water and for our resources. So I'm really happy we did that.

And it's funny, Sean, because I talked to some of my fellow mayors. I'm on the league executive committee with my fellow mayors, and none of them have this conditional use on there.

Not many cities do. Not many cities in Arizona are set up to negotiate these data centers. And I really thought we were on the forefront of getting this conditional use permit set in place before the data center, and this one just happened to slip in there right before we did it.

Right, right. but the cities are putting conditions in the waiver. But as far as the actual conditional use permit.

Yes, yes, and there being good participants in our city that they are willing to meet all these recommendations and the water, just like you just stated. I don't want to tell everything that you just said, but they are trying to do everything that would have been required of us in a conditional use permit. Right, okay.

Okay, so with that, and again, for those of you that are here and those that are watching, this was an information study session, but again, we want to engage, and so please reach out to us on the portal. Feel free to email. We know many of you have our email addresses, so please feel free to email us. Our PIO team is here to answer any questions. We really want to just get factual information out there as much as we can. There's probably certain people you trust, and hopefully we can be that, that you can trust that we are doing our due diligence and getting the facts out. But on August 3rd, it won't be a public hearing. However, we will have public comments. so you will be able to speak at the august 3rd meeting when this comes before the council so again thank you everyone for coming out today and for those of you that are watching we appreciate you watching and um you know we look forward to working with you so that's it we'll go ahead and adjourn then all right thank you everyone adjourn