The announcement that a data center company is set to purchase portions of the Unifi manufacturing plant in Yadkinville has set off a firestorm on social media, with some pleading with the town to enact a moratorium.
The announcement of the $60 million dollar sale came the same day Yadkin County leaders voted to enact a two-year moratorium on data centers while the county’s land use plan is reviewed. That moratorium, however, will only apply to unincorporated portions of the county, not municipalities including Yadkinville, Boonville, East Bend and Jonesville.
As the sites to be purchased are already part of the Unifi manufacturing plant and in the town’s Light Industrial zoned area, data centers are an included use available, which was a big selling point for White Fiber, the company which purchased the properties.
The sale, which Unifi described as “non-strategic” properties includes a warehouse space off of Main Street in Yadkinville as well as a location on Shacktown Road. The Shacktown Road property is outside the city limit, however it is within the Extraterritorial Jurisdiction (ETJ) in which the town’s zoning ordinances apply.
White Fiber is expected to retro-fit the properties for use as data centers. The company has recently done the same with a Madison-based property in Rockingham County, also formerly owned by Unifi.
Town leaders have tried to address the concerns and answer questions by issuing a formal statement on the town’s website. Why the town cannot enact its own moratorium to stop the data center plans is one question that continues to arise on social media. Town Manager Mike Koser explained that as the property was already zoned to allow data centers, according to State statute, a moratorium could not be applied.
The statement from the town reads, in part, “Members of the Town of Yadkinville Board of Commissioners and town staff have received requests for information, requests for specific actions, and are aware of the social media expressions of concern about the pending Unifi Manufacturing Inc sale of property to Enovum Data Centers, a wholly owned subsidiary of WhiteFiber, Inc.
“The Town understands and appreciates the concerns regarding data centers and as a response to those concerns, inquiries, and requests for action, has determined to issue the following as the Town of Yadkinville Board of Commissioners’ official position and statement of fact.
“After reviewing the applicable North Carolina Statutes and the Town’s authority under those Statutes and under the Town’s zoning regulations, the Town has determined that it will not initiate a separate public hearing concerning data centers at this time, nor will it impose a moratorium on data centers.
“North Carolina law requires a municipality to hold a legislative hearing when a governing board is actually considering the adoption, amendment, or repeal of a zoning regulation.
“N.C. Gen. Stat. § 160D-601(a) provides that, before adopting, amending, or repealing an ordinance or development regulation authorized by Chapter 160D, the governing board must hold a legislative hearing. A “legislative hearing” is a hearing to receive public comment concerning a proposed legislative decision. N.C. Gen. Stat. § 160D-102(20).
“The statute does not, however, provide that a resident may require the Town to initiate a zoning amendment or require the governing board to hold a legislative hearing merely because a resident requests one.
“N.C. Gen. Stat. § 160D-603 does not require the Town to initiate an amendment simply because a resident submits a request.
“Accordingly, because the Town is not presently proposing to adopt or amend a zoning regulation concerning data centers, there is no pending legislative zoning amendment for which NCGS 160D-601 requires a legislative hearing.
“If the Town subsequently decides to propose an amendment to its development regulations concerning data centers, the Town will comply with the notice and hearing requirements applicable to that proposed amendment.”
The statement continues, “The fact that a data center has been proposed does not, standing alone, establish the statutory necessity for a moratorium. A moratorium is a temporary regulatory measure, not simply a mechanism for delaying a particular development proposal while objections are considered.
“If an application for a data center is submitted, the application must be considered under the regulations applicable to the property at the time the application is properly submitted, subject to the provisions of North Carolina law.
“The Town cannot simply change the rules applicable to a particular property because residents oppose a proposed development. Any proposed change must comply with the statutory requirements governing zoning amendments.”
The post also including links to videos and more information on how the proposed data center by White Fiber is expected to operate.
The full statement is available on the town’s website at: yadkinville.org/news/town-position-statement-data-center