Delhi Township data center deal appears to be withdrawn

The development group that pithced a data center for Delhi Township withdrew its interest in the 400-acre site on Monday, according to a post on the website of the Lansing Econoic Area Partnership.

The post said Lighthouse Sustainability, a pre-development group that pitched a $10 billion data center on 423 acres including the Holt Economic Opportunity Park, had informed LEAP on Monday of its decision to withdraw.

The proposal lasted less than two weeks, it was announced during a news event with LEAP a week before Election Day – during an election where data center opposition was a plank for both parties. Within 24 hours, the township had withdrawn its membership in the regional economic development group.

Within days, the township’s board met and unanimously approved a resolution opposing the data center in a public meeting that had – at one point – more people unable to fit into the capacity room than were in the room. Almost all of the voices and emails were skeptical or in opposition to the proposal. Township officials said they received hundreds of negative comments and less than 10 supportive ones.

The township had approved a one-year moratorium on data centers in April and developers said they planned to use the remaining six months to pitch their plans, including at least $20 million for a community fund and an estimated $50 million in additional taxes.

Lighthouse CEO Gary Dorris told City Pulse on Halloween, the day after the meeting, that his team was seeing more positive responses than negative by using a Facebook sentiment software that identified 30 people who were supportive.

But Dorris also acknowledged the difficulty of getting the project approved given the initial reaction and he predicted that Delhi Township would regret their opposition, blaming township officials as well as knee-jerk reactions.

““It was preordained by the town (manager) that this is what she wanted and I believe that honestly the governing body largely follows her lead but it’s not serving the constituants well nor the greater Lansing area.”

He said the township’s board members neglected their fiduciary duty and didn’t consider all the extra perks and taxes that the data center proposal had brought to the table.

“Last night was a manifestation of a well-organized group, they have an army,” Dorris said, of the Oct. 30 meeting, “we haven’t built up our machinery to engage with the public, that is clearly something the community is not interested in doing. It’s that lack of leadership that will keep this community in its current state but it freezes out opportunity for growth and for future generations.”

He said there would be other options for his company but Delhi Township would carry a mark of having rejected a good proposal and may not get another good shot at using the property.

“It’s the community’s loss, not mine,” Dorris told City Pulse on Halloween.

In the Tuesday statement announcing the withdrawl, LEAP CEO and president Bob Trezise said it was the end of LEAP’s partnership with Lighthouse.

“While we are disappointed that a public dialogue was not truly allowed to begin, we thank the Delhi Township community and Lighthouse Sustainability for their participation and feedback, though brief,” he said in a statement. “We look forward to seeing what other non-data center opportunities might align for the community’s master plan into the future. Holt is a great community filled with great people and Delhi Township has outstanding leadership.”