Lawsuit Challenges Cave City Data Center Moratorium
CAVE CITY — A lawsuit filed Monday in Barren Circuit Court is challenging Cave City’s recently adopted one-year moratorium on data center development, alleging city officials violated state zoning laws and interfered with a development proposal that had already been submitted for review.
Kentucky Industrial Alliance, LLC (KIA) filed the complaint against the City of Cave City, the Cave City Council and the Joint City-County Planning Commission, seeking to have the moratorium declared invalid and unenforceable.
According to the lawsuit, KIA submitted a development plan on May 11 for property located at 2001 Doyle Avenue in Cave City. The filing states that Planning Director Kevin Myatt acknowledged receipt of the application in a letter dated May 13.
The complaint alleges the development plan was submitted before the city enacted its moratorium and therefore should be reviewed under the zoning regulations that existed at the time of filing.
Court records show the Joint City-County Planning Commission held a public hearing on April 30 regarding proposed data center regulations. The commission unanimously recommended zoning amendments that would have allowed data centers in Cave City’s I-2 Heavy Industrial District while imposing restrictions, including requirements that facilities generate at least 50 percent of their own power, utilize self-contained cooling systems, and maintain setbacks from residential areas and property lines.
The lawsuit states Cave City Council considered those recommendations on May 11 but failed to approve the proposed text amendment. During that same meeting, Councilwoman Leticia Cline proposed a one-year moratorium on data center development, which was approved by a 4-1 vote. The moratorium subsequently received final approval during special meetings held May 18 and May 20.
KIA alleges the moratorium was adopted without following procedures required under Kentucky Revised Statutes Chapter 100, including referral to the planning commission for review and a public hearing. The lawsuit further claims the moratorium was not properly published prior to adoption.
The complaint also contends the company made significant financial commitments based on existing zoning regulations. According to the filing, KIA purchased additional adjoining property at a cost of approximately $2 million to support an option agreement with a developer interested in constructing a data center. The company states it also paid more than $2,600 in development plan filing fees.
KIA argues the moratorium has caused immediate harm by preventing the Planning Commission from considering its application and asks the court to issue an injunction blocking enforcement of the moratorium while the case proceeds.
Among the relief sought, KIA requests a declaration that the moratorium is unlawful. Alternatively, the company asks the court to require the Planning Commission to review its development plan under the zoning regulations that were in place before the moratorium was adopted.
The case was filed June 8 in Barren Circuit Court and had not yet been scheduled for a hearing as of press time.
Editor’s Note: The lawsuit contains allegations made by the plaintiff. The defendants had not filed a response to the complaint at the time of publication, and the court has not ruled on the merits of the claims
