Kingsport moves forward with new data center zoning rules

KINGSPORT — Kingsport leaders approved new zoning rules for where data centers and cryptocurrency mining operations can locate in the city. The Board of Mayor and Aldermen approved the ordinance on first reading during Tuesday's meeting, creating development and location standards for data centers and cryptocurrency mining within the city. Planning Manager Ken Weems said the ordinance does not prohibit the uses but instead establishes guidelines that will protect surrounding property owners. "What this text amendment does is it allows an avenue for these types of uses to come into the city," Weems told the board. "I think it does an excellent job of protecting all the existing property owners and residents." The ordinance adds formal definitions for data centers and cryptocurrency mining and sets different requirements depending on whether a data center is proposed as a principal use or an accessory use to an existing business. Cryptocurrency mining would only be allowed as a principal use in heavy industrial (M-2) zoning districts and would require approval through a special exception from the Board of Zoning Appeals, Weems said. Proposed standards include a 100-foot setback from property lines, a 500-foot buffer from residential zoning or uses and a maximum sound level of 60 decibels at the property line. Weems said cryptocurrency mining operations need additional oversight because of the noise generated by cooling equipment. "That's what creates the sound that can really drive the neighbors nuts," he said. Applicants would be required to submit multiple sound studies throughout the permitting and construction process, as well as a vibration study, to show that they are complying with the standards. Several board members voiced support for the approach, including Alderman Morris Baker. "I think in Tennessee, sometimes with new technology, the reaction is to shut it down," Baker said. "But I think it's good that we at least have the door open. That doesn't mean a data center is going to come to Kingsport. They have to clear a lot of hurdles before that." Alderman Gary Mayes said the city's ordinance is already being reviewed by other communities as a model example. "The planning commission and planning staff have worked really hard on this for several months," Mayes said. "In conversations with sister cities, some officials mentioned using this zoning amendment as a role model for other communities. It's well written and well thought out." The ordinance must pass a second reading before taking effect. Other business The board also approved a resolution authorizing design work related to demolition at the Lynn View Community Center site, part of Phase 2 architectural services for the new elementary school planned at the location. The resolution passed 6-0, with Alderman James Phillips absent. The $268,700 contract with Thompson & Litton covers design work needed to prepare the site for construction. City Manager Chris McCartt said moving forward with the design phase is necessary to keep the project on schedule. "In order to meet the timeline that's been laid out, there was a need to move forward now with at least the design elements of the demolition," McCartt said. He said a public meeting on the project is scheduled for Feb. 5 at the Lynn View Garden Community Center. The board also approved an agreement with Thompson & Litton for design work related to renovations at Dobyns-Bennett High School. McCartt said that construction costs will cost $2.8 million, with funding coming from the Kingsport City Schools' fund balance. "These have been items that have been in discussions by the Board of Education through the Kingsport City School staff for some time," McCartt said. Mayes praised the collaboration between city leaders and school officials. "I'm really glad that our school board along with this board works together as well as they do in keeping our school facilities current and updated," he said. In other action, the board approved a resolution allowing the Kingsport Police Department to purchase a drone from Skydio through a Sourcewell cooperative purchasing agreement.