Attorneys clash over Kentucky law in Franklin data center zoning dispute

FRANKLIN, Ky. (WNKY) – A Simpson County judge is expected to decide this fall whether Simpson County can require a conditional use permit for a proposed data center inside Franklin city limits, a ruling that could clarify how Kentucky’s planning and zoning laws apply when city and county regulations conflict.

The dispute centers on whether Simpson County’s amended zoning ordinance applies to TenKey LandCo’s proposed data center, even after the City of Franklin determined the project is a permitted use under its own zoning regulations.

During Thursday’s hearing, TenKey attorney Gregory Dutton argued that KRS Chapter 100, Kentucky’s planning and zoning law, gives cities with independent planning commissions exclusive authority over land-use decisions within their boundaries.

Dutton pointed specifically to KRS 100.117, which allows cities to establish independent planning units, arguing that the statute’s use of the word “independent” means the county cannot impose additional zoning requirements inside Franklin.

“You cannot be independent if your jurisdictional borders are going to be essentially overlapped by the county’s authority,” Dutton argued. “That’s not the way the statutory scheme is set up.”

Dutton also cited a recent Kentucky Court of Appeals decision involving the Clover Creek Solar Project, arguing it reinforces that planning and zoning disputes must be resolved under KRS Chapter 100, rather than through counties’ broader home-rule powers.

Simpson County Fiscal Court attorney Aaron Smith argued the county’s authority instead stems from KRS 67.083, Kentucky’s home-rule statute, which allows counties to enact regulations unless a city has adopted the same or more restrictive standards.

Smith told the court the county is not attempting to override Franklin’s planning commission, but rather enforce its regulations only when they are more stringent than the city’s.

“The city will continue to operate an independent planning commission just like it does now,” Smith said. “I anticipate it’s going to be fairly narrow scenarios where this would come into play.”

Smith argued that because the proposed data center would have impacts beyond Franklin’s city limits, county officials have a responsibility to represent all Simpson County residents.

“The city of Franklin is not on a bubble. It’s not on an island. It is part of the county,” Smith said. “A project of this significance and of this scale is in Simpson County.”

Throughout the hearing, Judge Mark A. Thurmond questioned both sides about how their interpretations would work in practice and whether similar arrangements exist elsewhere in Kentucky.

The judge also pressed attorneys on whether KRS Chapter 100, as the more specific planning and zoning law, should control over the broader authority granted to counties under KRS 67.083.

At the conclusion of the hearing, Thurmond praised both legal teams for their preparation and said the case raises significant legal questions with broad public interest.

“I’ve worked most of it out in my head,” Thurmond said, adding that he still needs time to review the record and ensure he has “a mastery of the facts and a command of the law.”

Thurmond said he hopes to issue a written opinion before a status conference scheduled for Oct. 14, when he expects to announce or discuss his ruling.

The decision will determine whether Simpson County’s conditional use permit requirement applies to the proposed TenKey data center and could provide guidance for future disputes involving independent city planning commissions and county zoning authority across Kentucky.