Moratorium consideration

A moratorium on data center facilities first fell short of the necessary votes, then passed on a second try.

Portland City Council ultimately approved a one-year moratorium on data centers on first reading during its meeting Monday and also decided to schedule a special meeting to consider a moratorium on carbon sequestration facilities.

Earlier this month, Portland Plan Commission made a recommendation for a one-year moratorium on data centers. It made no recommendation on a proposed one-year moratorium on carbon sequestration facilities.

Jay/Portland Building and Planning director John Hemmelgarn explained that he initially did not see data centers as a possibility for Portland but that his mind was changed after attending a recent meeting. He noted concerns about heat and power use by such a facility.

“We need to, as a community, put the breaks on a lot of things and take a look at them,” Hemmelgarn said.

There are currently no data centers proposed for the community.

Council members initially voted 3-1 in favor of the moratorium with Mike Aker, Michele Brewster and Ashley Hilfiker in favor and Ron May against, leaving it one vote short of passage. (Members Kent McClung, Matt Goldsworthy and Dave Golden were absent.)

May said he voted against the moratorium because he would like to hear more information on the topic.

Council member Ashley Hilfiker responded that the purpose of a moratorium is to pause new facilities in order to allow local officials to gather more information. Hemmelgarn agreed, explaining that a moratorium provides time to put an ordinance in place to govern new facilities.

The council then took a second vote, with the moratorium passing 4-0 on first reading. (It will need to be approved on second reading before going into effect.)

City attorney Wes Schemenaur suggested that, because there was no recommendation from the plan commission on carbon sequestration, the council set a special meeting to discuss the issue. The meeting will need to be advertised in order to allow anyone who would like the comment on the issue the ability to do so.

Council voted unanimously to schedule a special meeting to discuss carbon sequestration, which involves “capturing” carbon dioxide, transporting it, typically via a piping system, and injecting and storing it deep underground. With several members absent, they didn’t set a date for the meeting.

POET Biorefining, which is outside the city limits but falls within the city’s 2-mile buffer for zoning, is planning a carbon sequestration project at its facility.

In other business:

•Approved a road use ordinance on second reading. It requires a permit for any project removing or altering a street’s surface or subsurface material at a fee of $500, with fines of up to $3,000 for those who do such work without a permit. Firms handling such work must be insured and bonded. Those who remove or alter a street will be required to repair and replace all materials. The city’s board of works, which will oversee the permits, may require that the entire block be repaved.

•Council approved tax abatement compliance reports for Pennville Custom Cabinetry, FCC (Indiana), Fisher Packing, Fort Recovery Industries, Pioneer Warehousing, Priority Plastics and Tyson Foods.

•Jay County Drug Prevention Coalition shared details about its various initiatives, including working with inmates at Jay County Jail, distributing naloxone and reaching out to individuals in the community. May donated $200 to the organization. Mayor Jeff Westlake asked about the status of a planned recovery house at 422 W. Votaw St. Executive director Kimbra Reynolds said plans have been submitted to the state for approval.

•May raised a question about a $50,000 economic development income tax (EDIT) loan to Rollin J Lanes, which has been advertised for sale. Schemenaur indicated that owners Tammy and David Jellison have been in communication with the city. He suggested a wait-and-see approach.

•Aker provided a reminder that Portland Evening Optimist Club will host its annual fishing derby Saturday at Hudson Family Park. Registration will begin at 8 a.m. with fishing to start at 8:30 a.m. Food will be provided at 11 a.m. The free event is for ages 3 through 18 (those 16 and younger must be accompanied by a parent).

•May asked whether there has ever been discussion locally about combining local law enforcement units into a single department. He raised the question out of concern for departments having challenges with recruiting employees.

•Phillips noted that construction on the Seventh Street bridge over the Salamonie River is scheduled to begin Monday. It is expected to be closed until mid-October.

•Phillips brought up several issues regarding city finances, noting that she and Westlake have talked about numbers for 2026 and at council’s next meeting would like to propose 2% raises. She also said there remains hope that state legislators will make modifications in coming years to minimize the impact of Senate Enrolled Act 1, which addressed a variety of tax-related issues. In the meantime, she said, the city can impose a local income tax in an effort to recoup some of the expected funding that the city will not receive as a result of changes made by SEA1.

•Hilfiker expressed concern about speeding vehicles on First Street along the north side of Weiler-Wilson Park, suggesting speed bumps or another stop sign. (The street was recently paved.) Westlake said he would look into solutions.