Questions posed about planning for possible fire station
HUTTO – An agreement between Skybox Datacenters LLC and the Hutto Economic Development Corp. with the clock ticking prompted the City Council to rezone a site in the Hutto Megasite — with stipulations.
The deal for a 140-acre parcel to be rezoned with pre-approval for a data center and power station would have expired in February without council approval, even though there is currently no tenant for the property.
The Hutto EDC owns the property and has a development agreement in place with Skybox Datacenters and its partner Prologis of San Francisco to buy the parcel by February, the contract’s expiration date.
Also, during the Oct. 1 session, the city pushed ahead on plans for its own fire station independent of services provided by Williamson County Emergency Services District No. 3.
Meanwhile, Hutto leaders approved the Skybox rezoning request with stipulations the developer use closed-loop cooling technology, adhere to Hutto land development codes and pay local sales taxes for all construction and power generation at the site.
The amendment passed 6-0. Councilwoman Corina Zepeda was not present for the vote.
One of the biggest issues for the advent of Skybox is power availability, a company official told city leaders.
“The situation with (the Electric Reliability Council of Texas) has become more challenging,” Skybox Chief Development Officer Haynes Strader said. “If we can secure power, which may take another two years, we would commence construction on the next phase of the data center campus which would be our fifth and sixth data center in the Megasite.”
Data centers need approval for power capacity from ERCOT, and the large demand for many projects has created a waiting list, officials have said.
Skybox is looking to create a Planned Unit Development district with a base zoning of light industrial but specifically stating that data centers and on-site power generation are acceptable uses, which currently are not allowed under the existing light-industrial zoning rules.
The city first received the developer’s request for rezoning in May.
The Hutto Planning and Zoning Commission recommended approval of the rezoning. Formerly known as Project Sequel, the second phase of development will now be called Hutto Data Center Campus East.
The campus will house data center facilities, industrial, warehouse, flex-industrial, office, utility and supporting uses.
Skybox has already completely leased its first Hutto project: PowerCampus Austin. The 600-megawatt facility represents a $10 billion investment. Construction will begin later this year to build out the final portion for the latest tenant.
The Dallas-based company has projects in Round Rock and Pflugerville, according to reports.
Hutto fire department still unofficial, still moving forward Although the city has not yet voted on whether it will officially establish a city-owned Fire Department, it is moving forward as though the deal were already sealed.
Last week, the city closed on a 3-acre piece of property on CR 132 that will house the new Hutto Fire Station No. 1, if one gets built.
The city is currently served by ESD No. 3, but a debate over how to share sales-tax revenues between the entities continues.
On Oct. 1, the council authorized City Manager James Earp to send letters of intent to ESD No. 3 stating the city will provide fire service to the Hutto Limmer Retail Annexation tract on Limmer Loop and Ventana Hills on CR 119.
Both properties are being annexed into the city.
Texas law says the city must notify the ESD of its intent to provide fire services in newly annexed areas within 30 days.
City Attorney Dorothy Palumbo told council the city is getting more requests for annexation due to an upcoming vote that would allow some annexed retail properties to sell alcoholic drinks.
“This letter is just an intent to provide fire services. It’s not a guarantee that we will come up with a fire service plan. There will be several things council would have to do in order to implement the fire service plan,” Palumbo said.
Zepeda questioned the fast progress of a Fire Department that doesn’t yet exist, noting the council had not received detailed cost estimates or other vital information.
“I understand the intent, that we do need to get greater control over our sales-tax dollars. It became a dog fight when it shouldn’t have. But right now we’re talking about fire services and we haven’t voted to do city fire services,” she said. “I don’t want to give the (misunderstanding) to the public or to ourselves that we’ve taken a vote to do fire services.”
Snyder confirmed a vote had not been taken to establish the department, but expressed confidence it would happen.
“Short of some revelation in costs that have not come up...my full intent is to always vote to do our own fire station,” Snyder said.
The mayor added he has already been discussing a location for a second city-owned fire station with the city manager.
