Last week, the Planning Commission held its regular meeting on Tuesday, February 3. A revised data center (DCPUD) ordinance returned to the agenda for consideration.
Following officials’ discussion, the Planning Commission made a minor modification to the draft and unanimously recommended the approval of the ordinance to the City Council. The Planning Commission serves as an advisory body to the City Council. They can recommend, recommend with changes, or not recommend items to the City Council. However, City Council retains final decision-making abilities.
We will update when the ordinance is expected to be brought before the City Council.
Why is an ordinance needed?
Land use planning is a responsibility granted to local governments by the State and is one of the City’s primary responsibilities. The Monticello 2040 Vision + Plan serves as the foundation for all land use regulations in a city. Earlier in 2025, the City reviewed the Monticello 2040 Vision + Plan related to data center land uses in Light Industrial Park (LIP) areas, and requires review of site impacts, utility and electric service demands, fiscal requirements, and assurance that any specific development project will not limit the City’s future growth.
A zoning ordinance is a tool to implement the policies put forth in the comprehensive plan. The ordinance creates a framework for evaluating future data center development applications, and it provides the criteria the Planning Commission and City Council can use to approve or deny a project. It also includes the standards for a project, including maximum building height and minimum setbacks, noise and lighting controls, building materials, and more.
What is a DCPUD?
A Data Center Planned Unit Development (DCPUD) District was determined to be an approach that would best address the City’s goals and complexity of data center development. A major reason for the use of a PUD is that it requires a rezoning action during the development application process. Rezoning is at the discretion of the City, as it is a legislative action of the City. Within this framework, data centers are not guaranteed the right to develop. They must apply and be granted rezoning by the Planning Commission and City Council.
Unlike Monticello’s typical PUD zoning, a DCPUD does not allow for flexibility from zoning standards. Instead, data center development is restricted to the DCPUD district, and only under a specific set of standards. As drafted, a variance would be required for any deviation from the standards of the DCPUD.
What does the draft ordinance include?
The draft ordinance includes the following components: definitions, approval criteria, allowable and prohibited uses, performance standards (setbacks, height, lighting, noise, landscaping, etc.), application process and submittal requirements, and administrative items (site improvement plan agreement, performance timing, amendment, and enforcement).
The original draft ordinance was first brought before the Planning Commission during public hearings in August and September. The City collected public feedback and held additional workshops for officials to hold focused discussion on the draft ordinance. Feedback, public comments, and additional research was used to revise the ordinance to further support regulation of data center land uses. The ordinance brought forward on February 3 was the latest revised draft.
Read the ordinance here: MonticelloMN.gov/AgendaCenter/ViewFile/Item/1495?fileID=25073 (PDF)
Does adoption of the ordinance automatically approve proposed data center projects?
No. The ordinance amendment does not approve any specific data center project. Instead, it provides the criteria and process for evaluating future development applications. The City of Monticello has not received a formal data center development application at this time, only concept proposals by private developers.