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Developers of would-be data center in Springdale offer first testimony to council

James Engel
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James Engel | TribLive
Harlan Stone, an attorney representing developers of a proposed data center in Springdale, speaks to Springdale Council on Thursday. Opposing counsel Tom Kloehn sits at a table in the foreground.

Developers presented the first part of what could be monthslong testimony on Thursday in an effort to earn approval for a massive data center project in Springdale.

Allegheny DC Property Co. offered new details about potential tax revenue from the proposed project to a packed council chamber filled with more than 100 people.

While developers have already made three presentations before the borough’s planning commission, Thursday night marked their first appearance before Springdale Council.

But it’s likely the first of many.

Brian Regli, a consultant for Allegheny DC, said his company will present eight witnesses to testify about the project to council.

In their first hearing, the developers managed to fully question one.

Anthony Barna, a Pittsburgh-based real estate appraiser, offered his assessment of the real estate tax revenue the project may ultimately generate. He based his estimate on the anticipated cost to build the data center, which he projected to be between $420 million and $770 million.

Using those figures, Barna said he conservatively estimates the site would generate about $658,000 in real estate tax revenue for the borough each year. That’s in addition to $1.46 million for Allegheny Valley School District and $434,000 for Allegheny County.

Currently, the site’s owners pay $17,000 to the borough, $38,000 to the district and $11,000 to the county in yearly real estate taxes.

A paid expert of the developer, Barna said a data center would likely generate the highest value for any potential use at the site.

“In my estimation, I couldn’t think of a use that would result in a higher return but a lower impact on this property than a data center,” he said.

That assertion was challenged by Tom Kloehn, a lawyer hired by Springdale resident Mitch Karaica to oppose Allegheny DC’s attorneys from Pittsburgh-based Babst Calland.

Kloehn is a staff attorney at Appalachian Mountain Advocates, a West Virginia firm specializing in environmental law.

Without a designated public comment period, Thursday’s meeting occasionally turned rowdy as attendees yelled out their questions and comments.

Springdale solicitor Craig Alexander said public comment will take place after the developers and Kloehn conclude their witness testimony.

Kloehn said he intends to call witnesses, but he’s unsure how many.

Council will reconvene at 5:30 p.m. Nov. 24 for the next round of testimony.

Before then, Springdale’s Zoning Hearing Board will meet at 6 p.m. Wednesday to consider a half-dozen variances sought by developers, including exceptions to make the data center and its surrounding fence taller.

The borough’s planning commission is also set to reconvene at 6:30 p.m. Oct. 27 to potentially offer its recommendation to approve or reject the developer’s conditional use application at the site. The commission has delayed its decision twice.

The council initially faced a Nov. 26 deadline to approve or reject the application or have it automatically approved. Alexander said developers agreed to extend the deadline until after testimony has concluded.

If testimony continues at its current rate, it could stretch into 2026, leaving the decision to a new council.

James Engel is a TribLive staff writer. He can be reached at jengel@triblive.com

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