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HomeMy WebLinkAbout26-1287City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services ACM: Kenneth Hedges DATE: August 18, 2026 SUBJECT Consider approval of a resolution of the City of Denton regarding a moratorium on the acceptance, processing, and approval of applications for the development of data centers within the corporate limits of the City of Denton and approving a schedule for required notice and public hearings for such moratorium; providing for severability; and providing an effective date. BACKGROUND Following a two-minute pitch in June of 2026 proposing a work session to evaluate the City’s policy framework for AI data center developments, Informal Staff Report 2026-039 was issued on June 26, 2026. Subsequently on August 4, 2026 a work session was presented, which discussed options for future data center applications, including a potential temporary moratorium to evaluate whether operational infrastructure demands, environmental impacts, and financial returns align with initial projections. A majority of City Council members provided direction for staff to move forward with preparing a temporary moratorium as well amendments to the existing Denton Development Code data center regulations. This item is a resolution being brought forward pursuant to Section 212.134 of the Texas Local Government Code in order to adopt the public hearing schedule for the proposed moratorium. Below is a complete schedule for the various steps that would have to occur for the moratorium 08/18/2026 Council consideration of a resolution setting the date for the first public hearing. 08/22/2026 Publication deadline for notice of the public hearing in the Denton Record Chronicle. (must be 30 days before the date of the public hearing) 09/22/2026 First Public Hearing related to the proposed moratorium. 10/27/2026 Second Public Hearing related to the proposed moratorium (cannot be before the 30th day after the date of the first hearing) First Reading of the moratorium ordinance (conducted not later than 12 days after the date of the second public hearing) 12/2/2026 Second Reading of the moratorium ordinance (conducted not less than 28 days after the first reading) City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Adoption of moratorium ordinance (requires a supermajority vote of at least 3/4ths of the Council) 03/02/2027 Expiration of moratorium (90 days after the adoption date) Note: The moratorium may be extended an additional 90 days if an extension is approved following additional public notice, public hearing, and adoption of written findings justifying the extension. If the Council votes to approve of the proposed public hearing schedule, Staff would prepare and submit notification to the Denton Record Chronicle in order for the first hearing to take place in September. PRIOR ACTION/REVIEW (Council, Boards, Commissions) June 2, 2026 City Council Two-Minute Pitch regarding having a work session about a moratorium on data centers Direction Given to Move Forward August 4, 2026 City Council Work Session discussion regarding a moratorium on data centers Direction Given to Move Forward Recommendation: Staff recommends approval of the public hearing schedule. OPTIONS 1. Approve 2. Deny 3. Postpone Item EXHIBITS Exhibit 1 - Agenda Information Sheet Exhibit 2 - Draft Resolution Exhibit 3 - Presentation Respectfully submitted: Charlie Rosendahl Director of Development Services Prepared by: Hayley Zagurski, AICP Planning Director Page 4 of 4 Exhibit A Moratorium Public Hearing Schedule 08/18/2026 Council consideration of a resolution setting the date for the first public hearing. 08/22/2026 Publishing of the Public Hearing dates in the Denton Record Chronicle (must be 30 days before the date of the public hearing) 09/22/2026 First Public Hearing related to the proposed moratorium. 10/27/2026 Second Public Hearing related to the proposed moratorium (cannot be before the 30th day after the date of the first hearing) Da t a C e n t e r Mo r a t o r i u m P u b l i c He a r i n g S c h e d u l e Ch a r l i e R o s e n d a h l De v e l o p m e n t S e r v i c e s Fi l e I D 2 6 - 1 2 8 7 A u g u s t 1 8 , 2 0 2 6 ‰Ma y 1 4 - MP T S t e v e n s s u b m i t t e d a 2 - m i n u t e p i t c h ‰Ju n e 2 - Co u n c i l a p p r o v e d t h e 2 - m i n u t e p i t c h ‰Ju n e 2 6 - IS R 2 0 2 6 - 0 3 9 w a s p r o v i d e d o n d a t a c e n t e r s , a n d t h e ag e n d a c o m m i t t e e m o v e d i t f o r w a r d t o a w o r k s e s s i o n . ‰Au g u s t 4 - Ci t y C o u n c i l d i r e c t e d s t a f f t o m o v e f o r w a r d w i t h am e n d m e n t s t o t h e D e v e l o p m e n t C o d e a n d s t a r t t h e mo r a t o r i u m p r o c e s s f o r d a t a c e n t e r s . Ba c k g r o u n d Fi l e I D 2 6 - 1 2 8 7 A u g u s t 1 8 , 2 0 2 6 2 Mo r a t o r i u m s i n T e x a s Fi l e I D 2 6 - 1 2 8 7 A u g u s t 1 8 , 2 0 2 6 3 ‰ Wh a t i s a M o r a t o r i u m ? ‰ Te m p o r a r y p a u s e o n a c c e p t i n g o r pr o c e s s i n g n e w d e v e l o p m e n t a p p l i c a t i o n s . ‰ Mo r a t o r i u m c a n n o t h a l t o r i n v a l i d a t e a l r e a d y - f i l e d ap p l i c a t i o n s ( V e s t e d u n d e r T L G C C h a p t e r 2 4 5 ) . ‰ Li m i t e d t o a d e f i n e d g e o g r a p h i c ar e a w h i c h c a n b e C i t y l i m i t s a nd / o r E T J t o t h e e xt e n t C i t y h a s au t h o r i t y . ‰ Le g a l B a s i s ( T L G C C h a p t e r 2 1 2 ) ‰ A m u n i c i p a l i t y m a y i m p o s e a m o r a t o r i u m o n l y i f s u p p o r t e d b y s p e c i f i c f i n d i n g s r e l a t e d t o : ‰ Sh o r t a g e o f e s s e n t i a l p u b l i c f a c i l i t i e s (w a t e r , s e w e r , d r a i n a g e , o r s t r e e t s ) ( T L G C 2 1 2 . 1 3 5 ) ‰ Si g n i f i c a n t n e e d f o r o t h e r p u b l i c f a c i l i t i e s ( p o l i c e , f i r e , o r e l e c t r i c ) ( T L G C 2 1 2 . 1 3 5 1 ) ‰ Co m m e r c i a l m o r a t o r i u m f o r a n e e d t o up d a t e l a n d d e v e l o p m e n t o r d i n a n c e s ( T L G C 2 1 2 . 1 3 5 2 ) ‰ Co u l d n o t a p p l y t o p r o p e r t y zo n e d f o r H e a v y I n d u s t r i a l . ‰ Re q u i r e m e n t s f o r I m p o s i n g a M o r a t o r i u m ‰ Ci t y ’ s m u s t s u b m i t w r i t t e n f i n d i n g s s u p p or t i n g t h e n e c e s s i t y o f t h e m o r a t o r i u m a t a d o p t i o n . ‰ Wr i t t e n f i n d i n g s v a r y d e p e n d i n g o n t h e l e g a l ba s i s f o r t h e m o r a t o r i u m , b u t g e n e r a l l y i n c l u d e ev i d e n c e f o r w h y e x i s t i n g r e g u l a t i o n s a r e i n a d e q u a te , t h e n e e d t o p r e v e n t t h e d e v e l o p m e n t f r o m ca u s i n g o v e r c a p a c i t y o f i n f r a s t r u c t u r e , a n d t h e g o a l s or w o r k i n g p l a n f o r a c h i e v i n g t h e o b j e c t i v e s o f a m o r a t o r i u m t o a d d r e s s t h e s e i s s u e s . 3 Mo r a t o r i u m P r o c e s s Te x a s S t a t e R e q u i r e m e n t s ( T L G C 2 1 2 . 1 3 4 ) ‰ 30 - D a y N o t i c e R u l e : A m u n i c i p a l i t y m u s t p u b l i s h a pu b l i c h e a r i n g n o t i c e i n t h e n e w s p a p e r a t l e a s t 3 0 da y s b e f o r e h o l d i n g e a c h s t a t u t o r y h e a r i n g , w i t h th e d a t e s s e t b y r e s o l u t i o n o r o r d i n a n c e . ‰ Tw o P u b l i c H e a r i n g s : Th e m u n i c i p a l g o v e r n i n g bo d y m u s t c o n d u c t t w o s e p a r a t e h e a r i n g s . T h e se c o n d p u b l i c h e a r i n g c a n n o t b e h e l d b e f o r e t h e 30 t h d a y a f t e r t h e f i r s t h e a r i n g . ‰ 28 - D a y R e a d i n g G a p : In i t i a l r e a d i n g m u s t b e g i n wi t h i n 1 2 d a y s o f t h e s e c o n d h e a r i n g . T h e a d o p t i n g or d i n a n c e r e q u i r e s a t l e a s t t w o s e p a r a t e r e a d i n g s sp a c e d n o l e s s t h a n 2 8 d a y s a p a r t . ‰ Wr i t t e n F i n d i n g s : Ci t y m u s t p r o v i d e w r i t t e n f i n d i n g s fo r t h e m o r a t o r i u m s i n t h e a d o p t i n g o r d i n a n c e . ‰ Su p e r m a j o r i t y V o t e : To o f f i c i a l l y t a k e e f f e c t , t h e or d i n a n c e m u s t r e c e i v e a n a f f i r m a t i v e v o t e o f a t le a s t t h r e e - f o u r t h s o f a l l m e m b e r s o n t h e f i n a l re a d i n g . 8/ 1 8 Re s o l u t i o n f o r P u b l i c H e a r i n g Co u n c i l c o n s i d e r a t i o n o f a r e s o l u t i o n o r o r d i n a n c e se t t i n g t h e d a t e f o r t h e f i r s t h e a r i n g . 8/ 2 2 Ne w s p a p e r P u b l i c a t i o n Pu b l i s h n o t i c e o f p u b l i c h e a r i n g s i n p a p e r ( s t a r t s t h e 30 - d a y c l o c k 9/ 2 2 Fi r s t P u b l i c H e a r i n g Fi r s t p u b l i c h e a r i n g r e l a t e d t o t h e p r o p o s e d mo r a t o r i u m . 10 / 2 7 Se c o n d P u b l i c H e a r i n g & 1 s t R e a d i n g Ci t y C o u n c i l h o l d s 2 n d h e a r i n g a n d f i r s t r e a d i n g . 12 / 2 Fi n a l A d o p t i o n & 2 n d R e a d i n g Re q u i r e s a 3 / 4 t h s C o u n c i l s u p e r m a j o r i t y t o a d o p t . 4 Fi l e I D 2 6 - 1 2 8 7 A u g u s t 1 8 , 2 0 2 6 DD C A m e n d m e n t s Fi l e I D 2 6 - 1 2 8 7 A u g u s t 1 8 , 2 0 2 6 5 • D e v e l o p m e n t C o d e R e v i e w C o m m i t t e e Au g 2 4 • P u b l i s h n o t i c e o f p u b l i c h e a r i n g s i n t h e l o c a l n e w s p a p e r . Se p 1 2 • P & Z h o l d s f i r s t p u b l i c h e a r i n g a n d m a k e s a r e c o m m e n d a t i o n . Se p 2 3 5 • C i t y C o u n c i l h o l d s p u b l i c h e a r i n g a n d c o n s i d e r s a d o p t i o n . Oc t 1 3 • D D C a m e n d m e n t s b e c o m e e f f e c t i v e . Oc t 2 7 5 ‰Re s o l u t i o n a u t h o r i z e s t h e r e q u i r e d p u b l i c n o t i c e s a s r e q u i r e d un d e r T e x a s L o c a l G o v e r n m e n t C o d e S e c t i o n 2 1 2 . 1 3 4 . ‰Pu b l i c H e a r i n g S c h e d u l e : ‰08 / 1 8 / 2 6 : R e s o l u t i o n c o n s i d e r a t i o n t o s e t f i r s t h e a r i n g d a t e ‰08 / 2 2 / 2 6 : P u b l i c a t i o n d e a d l i n e ( 3 0 - d a y r e q u i r e m e n t ) ‰09 / 2 2 / 2 6 : F i r s t p u b l i c h e a r i n g ‰10 / 2 7 / 2 6 : S e c o n d p u b l i c h e a r i n g ( 3 0 + d a y s a f t e r f i r s t ) a n d f i r s t r e a d i n g of o r d i n a n c e ‰12 / 0 2 / 2 6 : S e c o n d r e a d i n g a n d C i t y C o u n c i l a c t i o n . Co n s i d e r a t i o n Fi l e I D 2 6 - 1 2 8 7 A u g u s t 1 8 , 2 0 2 6 6 QU E S T I O N S ? Fi l e I D 2 6 - 1 2 8 7 A u g u s t 1 8 , 2 0 2 6