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TA I-2 Zoning - Data Centers - 09jun26

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Text Amendment

I-2 Heavy Industrial Zoning District

Planning Commission- June 9, 2026

Heath Martin, Planner I

Meeting Timeline – Tentative

June 9, 2026

• Planning Commission Recommendation

• Zoning Ordinance

Text Amendment

August 6, 2026

• Zoning & Noise Ordinance

• 1st Reading

• City Commission

August 20, 2026

• City Commission

• 2nd Reading

• Zoning & Noise Ordinance

• Public Hearing

September 3, 2026

•City Commission

• 3rd & Final Reading

• Zoning & Noise Ordinance

• Moratorium Expires

Purpose of Text Amendment

A text amendment allows changes to governing ordinances as the community’s needs change.

Any amendment to the Zoning Ordinance is subject to Article 14 and requires a Planning Commission recommendation and three readings at City Commission. If the text is adopted, it becomes the new ordinance on the date of adoption.

Why we are here

• Data Center technology & investment continue to evolve rapidly

• Johnson City adopted initial regulations in June of 2025

• Additional research, technical analysis, and public engagement have been completed

• Proposed amendment provides stronger framework for evaluating future applications

• Moves Data Centers from Permitted Use to Special Exception Review under Board of Zoning Appeals

Progress since 2025

• June 2025 – Initial Data Center ordinance (4914-25) adopted, moratorium enacted

• Fall 2025 – Solicited a Request for Qualifications (RFQ) for a consultant to perform a Noise & Vibration Study

• Fall 2025/Winter 2026 - Working Group Established

• National policy review

• Industry research

• Review of peer communities

Progress since 2025, cont.

• February 2026 – JPM Awarded Consultant Contract for Noise & Vibration Study

• March/April 2026 – JPM conducted ambient noise study

• Launched webpage for the study including public survey

• May 2026 - JPM provided Ambient Noise Level Report

• May 2026 – Moratorium extended until December 3rd , 2026

• June 5, 2026 – Online survey concluded & under review

National Policy Review - What We

Reviewed

Staff reviewed approaches by:

• Federal agencies (Executive Orders, EPA regulations, etc.)

• State governments

• Utility providers

• Jurisdictions regulating large-scale data centers

National Policy Review - What We Learned

Common Themes Identified:

• Noise management

• Infrastructure capacity verification

• Environmental review

• Community engagement

• Ongoing compliance monitoring

• Flexibility to adapt to evolving technology

Completion of Noise Research

Why Noise Matters:

• Data centers operate continuously

• Cooling systems and generators are primary concerns

• Impacts are highly site-specific Actions taken:

• Research of national standards

• Review of acoustical engineering practices

• Development of technical assessment requirements

• Creation of compliance monitoring framework

Key Changes from the 2025 Text Amendment

Current:

• Permitted Use in I-2 Zoning District

Proposed:

• Special Exception Use in I-2 Zoning District

• Definitions revised & added for Data Centers, Accessory Data Centers, Noise & Vibration Studies, and Qualified Acoustical Engineers

• Establish objective noise & vibration performance standards & compliance requirements

• Requires technical studies for noise & vibration, utility, and environmental impacts

• Increase setbacks and changes residential separation measurements from the facility to the property line

• Requires ongoing public transparency through a project information website

What Stayed the Same

• Data Centers remain limited to the I-2 Heavy Industrial Zoning District

• Operations must comply with applicable City Ordinances & Regulations

• Digital data operations remain enclosed within buildings

• Screening & buffering requirements remain part of the development review process

I-2 Zones

Board of Zoning Appeals (BZA) Special Exception

Review

Board of Zoning Appeals & Public Process

Why Special Exception Review Matters:

• Every proposed data center must be reviewed at a public hearing before the BZA

• Board is composed of Johnson City residents appointed to serve as independent decision-makers

• Applicants must submit technical studies, site plans, and supporting documentation for public review

• Adjacent property owners w/in 200ft receive notification

• Property owners & members of the public may provide testimony during the hearing process

• Board may impose additional site-specific conditions to address compatibility, noise, vibration, etc.

• Annual review at license renewal (includes notification)

A. General Operational Compliance

Purpose: Establish ongoing operational standards for all data center activities

• Must comply with the City’s Noise Ordinance & all applicable City Regulations

• Prohibits unreasonable off-site impacts, including glare, emissions, interference, and nuisance conditions

• Requires compliance with vibration performance standards

• Establishes compliance with vibration performance standards

• Establishes Noise & Vibration Assessment Guidelines for future technical evaluations

• Allows the BZA to impose additional conditions when warranted

Why Vibration is Addressed

Separately Understanding Vibration Impacts

• Unlike sound, vibration can be difficult to identify and attribute to a specific source

• Ground conditions, building construction, traffic, rail activity, industrial operations, and natural conditions can all influence perceived vibration

• Because of these complexities, the zoning ordinance requires vibration analysis by Qualified Acoustical Engineers using accepted engineering methodologies

• The ordinance allows the City to retain an independent qualified acoustical consultant to review studies, methodologies, assumptions, and compliance documentation

• The cost of this independent review is borne by the applicant or facility owner/operator, not taxpayers.

B. Site Plan & Operational Layout

Purpose: Provide sufficient information to evaluate operational impacts

• Building locations & dimensions

• Property boundaries & setbacks

• Adjacent land uses & zoning

• Nearby residential & noise-sensitive uses

• Cooling equipment, generators, substations, transformers, and utility infrastructure

• Proposed screening & buffering

• Developmental phasing, where applicable

C. Pre-Construction Ambient Analysis

Purpose: Establish existing conditions before development

• Conducted by a Qualified Acoustical Engineer

• Documents existing ambient sound and vibration conditions

• Creates a baseline for future comparison

• Prepared in accordance with City guidelines

D. Predictive Noise & Vibration Study

Purpose: Evaluate future impacts before approval

• Predicts operational noise & vibration levels

• Demonstrates compliance with City standards

• Evaluates equipment, cooling systems, generators, and supporting infrastructure

• Prepared by a Qualified Acoustical Engineer

E. Annual Compliance Verification

Purpose: Verify continued compliance after construction

• Required annually or at business license renewal

• Confirms compliance with approved operational standards

• Evaluates actual facility performance

• Documents ongoing noise & vibration compliance

F. Operational Modification / Expansion

Review

Purpose: Ensure future changes receive review

Required for:

• Additional generators

• Expanded cooling capacity

• Substation or transformer upgrades

• Increased IT equipment loads

• Facility expansions

• Other significant operational changes

G. Independent Technical Review

Purpose: Provide independent expert review

• City may retain qualified acoustical consultants

• Consultants may review studies, assumptions, and methodologies

• Cost borne by the applicant or facility operator

• Additional expertise available when needed

H. Facility Design & Equipment

Screening

Purpose: Minimize visual & operational impacts

• Data operations must occur within enclosed buildings

• Ground-mounted equipment limited to side and rear yards

• Equipment prohibited within required setbacks

• Acoustically effective screening required

• Roof equipment must be integrated into building design

I. Setbacks & Residential Separation

Purpose: Improve compatibility with nearby residential areas

• 60ft front setback

• 50ft side & rear setback

• 200ft minimum separation from residential uses and zoning districts

• Separation measured from property line to property line

Setbacks & Separation

Setbacks & Separation

• 60ft front setback

• 50ft side & rear setback

• 200ft separation from any residential use or district property line

Why 200 feet from Residential Use/Districts?

• The proposed separation standard provides a meaningful buffer from residential areas while recognizing that compatibility is ultimately achieve through site design & operational controls

• Beyond physical distance, the ordinance requires performance standards through;

• acoustical design,

• vibration analysis,

• screening,

• buffering, and

• ongoing compliance verification to ensure impacts remain within acceptable limits

J. Buffering & Acoustic Mitigation

Purpose: Reduce off-site impacts

• Type 4 Buffer Yard required adjacent to residential areas

• Additional buffering may be required

• Earthen berms permitted

• Acoustic barriers permitted

• Enhanced landscaping may be required

K. Environmental & Industrial Operations Study

Purpose: Evaluate broader community impacts

Review includes:

• Water use

• Wastewater impacts

• Stormwater

• Utility demand

• Transportation impacts

• Emergency services

• Environmental conditions

• Community impacts

• Mitigation alternatives

L. Utility Capacity Verification

Purpose: Confirm infrastructure can support the facility Verification required for:

• Electric capacity

• Water service (Johnson City)

• Wastewater treatment (Johnson City)

• Necessary infrastructure improvements

M. Electronic Waste Management

Purpose: Ensure responsible equipment disposal

• Electronic Waste Plan required

• Addresses servers, batteries, hazardous materials, and related equipment

• Must comply with state and federal regulations

• Subject to City review

N. Decommissioning & Financial

Assurance

Purpose: Ensure long-term accountability

Requires:

• Decommission plan

• Cost estimates

• Site restoration procedures

• Hazardous material handling

• Financial assurance acceptable to the City (Bond)

O. Public Information & Transparency

Purpose: Ensure long-term accountability

Applicants must maintain a public website with:

• Project description

• Site maps & renderings

• Construction schedules

• Development phasing

• Public meeting information

• Permit status updates

Creating a Flexible Regulatory Framework- Planning for an Evolving Industry Data Centers continue to change rapidly:

• Cooling technologies

• Power systems

• Battery storage

• AI-related computing demands

• Water consumption methods

Noise & Vibration Assessment Guidelines – A Living Technical Document

Similar to Traffic Studies

Benefits:

• Administrative updates w/o repeated ordinance amendments

• Ability to incorporate evolving industry standards

• Consistent technical methodology

• Improved review efficiency

Why This Approach is Defensible

Reasonable

• Allows data centers in appropriate industrial areas

• Does not create a prohibition

Rational

• Requirements directly address documented impacts

• Standards are based on engineering and technical review

Defensible

• Objective criteria

• Measurable standards

• Consistent review process

• Technical documentation

• Clear nexus between impacts and mitigation

Consistency with Adopted Plans

Consistency with Horizon 2045 Plan

Supporting Action P1.2.1

“Regularly review and update zoning ordinances to ensure they accommodate emerging industries & evolving market trends.”

Consistency with Horizon 2045 Plan,

This amendment:

 Supports economic development

 Protects neighborhoods

 Provides flexibility

 Creates predictable review standards

 Allows adaptation over time

Staff Recommendation

Staff recommends approval of the proposed text amendment.

The proposed ordinance:

• Reflects extensive research

• Incorporates public feedback

• Establish measureable standards

• Protects public health, safety, and welfare

• Provides a reasonable, rationale, and defensible framework for future data center review

Discussion

Planning Commission Decision Options

• APPROVE the text amendment as provided

• DENY the text amendment and state the reasons for denial in writing

• DEFER the action to a date certain, pending the receipt of additional information

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