TA I-2 Zoning - Data Centers - 09jun26

Text Amendment I-2 Heavy Industrial Zoning District Planning Commission- June 9, 2026 Heath Martin, Planner I

Meeting Timeline – Tentative • Planning Commission Recommendation • Zoning Ordinance Text Amendment

August 6, 2026

• City Commission • 1st Reading • Zoning & Noise Ordinance

June 9, 2026

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

TIMELINE

Purpose of Text A text amendment allows changes to governing Amendment 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 PURPOSE

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

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 PROGRESS

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

STAFF REVIEW

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

STAFF REVIEW

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 NOISE RESEARCH

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 SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

I-2 Zones

SPECIAL EXCEPTION

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) SPECIAL EXCEPTION

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 SPECIAL EXCEPTION

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.

VIBRATION COMPLIANCE

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

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

Setbacks & Separation Setbacks & Separation 200 ft

50ft 50ft

DATA CENTER

60ft

50ft

•

60ft front setback

•

50ft side & rear setback

•

200ft separation from any residential use or district property line

ZONING REQUIREMENTS

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

20 0ft

ZONING REQUIREMENTS

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

SPECIAL EXCEPTION

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 SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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)

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

SPECIAL EXCEPTION

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

SPECIAL EXCEPTION

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

GUIDELINES

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 SPECIAL EXCEPTION

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.”

HORIZON 2045

Consistency with Horizon 2045 Plan, cont.

This amendment:  Supports economic development  Protects neighborhoods  Provides flexibility  Creates predictable review standards  Allows adaptation over time “ HORIZON 2045

Staff Recommendation Staff recommends approval of the proposed text amendment.

The proposed ordinance: • Reflects extensive research •

Incorporates public feedback

•

Establish measureable standards

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Protects public health, safety, and welfare

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

STAFF RECOMMENDATION

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

DECISION OPTIONS