Lawsuit reveals Cave City Data Center proposal
CAVE CITY, Ky. (WNKY) – The controversy surrounding possible data center development in Cave City took another turn this week after a lawsuit filed in Barren Circuit Court revealed a development plan for a proposed data center had already been submitted before city leaders enacted a one-year moratorium on such projects.
Kentucky Industrial Alliance LLC filed the lawsuit Monday, June 8 against the City of Cave City, the Cave City Council and the Joint City-County Planning Commission, arguing the moratorium was adopted in violation of Kentucky law and should be declared invalid.
The filing marks the first public indication that a specific development proposal had been submitted for consideration.
According to the lawsuit, Kentucky Industrial Alliance submitted a development plan on May 11 for property located at 2001 Doyle Avenue in Cave City. The company alleges the application was later accepted by the Joint City-County Planning Commission and was submitted before city leaders approved the moratorium.
The lawsuit further claims the company owns more than 600 acres tied to the project and spent approximately $2 million acquiring additional land as part of an agreement involving a potential data center development. Kentucky Industrial Alliance in the lawsuit says the Moratorium, “violates the principles of due process and should be held as invalid as being arbitrary and bad faith.”
The legal challenge centers on the one-year moratorium approved by the Cave City Council following weeks of public opposition to possible data center development in the Mammoth Cave region. Residents packed multiple council meetings, raising concerns about utility demands, environmental impacts, tourism and the long-term character of the community.
In its complaint, Kentucky Industrial Alliance argues the moratorium was improperly adopted because it was not first reviewed by the Joint City-County Planning Commission and was approved without following notice and hearing requirements outlined in Kentucky’s zoning statutes. The company also contends it has vested rights because its development plan was filed before the moratorium took effect.
The company is asking the court to invalidate the moratorium and allow its development plan to be considered under the zoning regulations that existed when the application was filed.
The moratorium was approved by a series of 4-1 votes in May, with council member Denny Doyle casting the lone vote against the measure. The ordinance temporarily pauses data center-related zoning discussions in Cave City for one year while city leaders evaluate potential future regulations.
As of Tuesday, responses from the city and other defendants had not yet been filed.
