WHEELING, W.Va. — Wheeling City Council agreed to a Memorandum of Understanding with developers of a proposed data center in a former industrial building in the city.
Mayor Denny Magruder said the MOU with Silicon Foundry LLC does two things. First, it limits the operation to no more than 90 megawatts of power, which is the minimum to be considered a high-impact data center. Secondly, it enables the city to create a TIF district or to connect the facility to the existing TIF district and direct the tax money on the value of the property toward economic development projects.
“We can create a tax increment financing situation where the city would benefit. As the property value escalates obviously, we would have an opportunity to sell bonds to use for economic development projects,” said Magruder.
The proposed facility would be located inside the former Centre Foundry in Wheeling. Council took some criticism from members of the public at Tuesday’s meeting claiming the MOU did not address the concerns they brought forward. Magruder was quick to point out that wasn’t the point of the MOU to begin with. He said those concerns are being addressed in the city’s zoning laws.
“One thing we have to remind the public is the parcel of property we’re talking about for more than 100 years was a foundry with three electric arc furnaces. They used substantial power and it’s been closed for five or six years, but it was an industrial site,” he added.
The property has been sitting idle for several years and continues to deteriorate. Silicon Foundation made a legitimate purchase of the property which is already zoned as industrial property. The regulations governing industrial zoning would apply in the case of this facility.
Magruder added concerns about use of high volumes of water would actually benefit the city. Wheeling runs the water company, and a high volume user would generate extra capacity and help shore up the infrastructure allowing rates for residential customers to stabilized for many years to come.
“This property right now is dilapidated and falling in. It’s a brownfield. So if we don’t have a developer like the people who are stepping up, that property will sit there and be an eyesore to the immediate neighborhood and the city,” he added.