City Council approves annexation and zoning request

A packed room at the August 4 City Council meeting reflected the growing public interest in two major zoning changes, including one that could pave the way for a data center.

The first of two public hearings centered on a proposed ordinance to rezone land along County Highway B between 650th Avenue and 690th Avenue from Agricultural to Restricted Industrial. The land, which is also the subject of a petition for annexation into the City of Menomonie, is being eyed as a possible site for a data center—a possibility that drew concern from many of the people who addressed the Council.

Residents raised a variety of issues, ranging from water usage and electricity demand to farmland loss and uncertainty about job creation. City Administrator Eric Atkinson addressed some of these issues in a media release, which can be read HERE.

During the public hearing, Tyrel Zich, Regional Vice President of Regulatory Policy at Xcel Energy, provided insight into the utility’s role in supporting data centers. He explained that Wisconsin law requires Xcel to serve any customer seeking to connect to the grid, regardless of size. Additionally, according to Wisconsin Statutes, there is a legal requirement that new customers impose no negative impacts on other customers. He also pointed out that the cost of the necessary upgrades is borne entirely by the customer seeking to connect to the grid. 

Zich emphasized that Xcel has experience serving data centers in Texas, Minnesota, and Colorado and is committed to working with the City of Menomonie and stakeholders to ensure reliable service and long-term planning.

Council Action: Rezoning and Annexation Approved

During the discussion, Council member Matthew Crowe clarified that the Council is only considering annexation and rezoning at this time. Council member Jeff Luther noted that the city does not own the land and questioned the city's authority over what will eventually be built there. Public Works Director David Schofield explained that the landowners can sell the property to anyone, but a developer’s agreement would likely come before the Council in the future.

Luther then made a motion to delay the decision for at least 90 days to allow the public to petition for a referendum on the matter. City Attorney Ben Ludeman advised that the city is required to act within 120 days of the filing, so a 90-day delay wasn't possible. Ludeman also stated that the use of advisory referendums was limited by Act 12 and is not an option in this case. Luther revised his motion to deny annexation entirely, but with no one seconding it, the motion failed.

Council member Cody Gentz then motioned to postpone discussion until the Council’s first meeting in September. Luther seconded.

At that point, Council member Gretchen Yonko made a motion to suspend the rules and allow Douglas Buck, attorney for Balloonist Inc., to speak. Buck informed the Council that his client would not provide any new information and that further delays would jeopardize the project's chances of moving forward. He said the Council would still have opportunities to review future agreements and urged them to act tonight.

Council President Mary Solberg questioned how a delay would benefit the community, noting that moving forward would allow the Council to begin addressing the public's questions regarding the data center. 

Gentz responded that the delay was meant to give the public more time to process the information presented during the meeting.

Council member Ryland Erdman questioned the timeline of the proposed data center project. Schofield replied that more details on development agreements and tax increment financing would likely come before the Council in the next few months, with construction unlikely to begin before 2027.

The Council then voted on Gentz’s motion to postpone. The motion failed, with only Pickard, Luther, and Gentz voting in favor.

Crowe proceeded to introduce the ordinance for annexation. The Council waived the first and second readings. Crowe then moved to adopt the ordinance. The motion passed in a roll-call vote, with Solberg, Brennan, Erdman, Sommerfeld, Crowe, Sutherland, Yonko, and Schwebs voting in favor. Pickard, Gentz, and Luther voted no.

The Council then turned to the proposed rezoning of the land. The ordinance had been introduced at an earlier meeting, and the Council again waived the first and second readings. Schwebs made a motion to adopt the rezoning ordinance, which was seconded by Crowe. The motion passed on a roll call vote with the same results as the annexation vote: Solberg, Brennan, Erdman, Sommerfeld, Crowe, Sutherland, Yonko, and Schwebs voted yes. Pickard, Gentz, and Luther voted no.

With the annexation and rezoning now approved, further development discussions—such as developer agreements and financing options—are expected to come before the Council later this year.

Second Rezoning Request: Alliance Church/YMCA Daycare

The second public hearing focused on a rezoning request for property at 21st Street NE and 7th Avenue NE, the site of Menomonie Alliance Church. The church is partnering with the YMCA to provide a child care center within the building. 

Some residents voiced concerns that the four residential lots along 7th Avenue could later be sold for commercial development. Derek White of the YMCA explained that in order for the center to receive state licensing and funding, the property must be rezoned from Single Family Residential (R-1) to Local Commercial (B-2).

A letter provided to the council by representatives from Alliance Church and the YMCA, stated that in the event the partnership between the YMCA and Menomonie Alliance Church ceases at any point, the church will submit a request to the city to rezone the parcels back to R-1.   

Erdman asked if it was possible to alter the rezoning petition to exclude the four lots. Attorney Ludeman said the Council needed to act on the petition as filed. If denied, the applicants could refile and exclude the lots at that time. The ordinance was adopted with a 7-3 vote, with Brennan, Erdman, and Sutherland opposed. Solberg left the meeting before the matter came to a vote. 

Additional Council Business

• The Council certified the City’s exemption from Dunn County’s 2026 library tax, having met the required spending level on library services.

  
  

• The Fire Department received approval to purchase a new rescue boat in the 2025 Capital Improvement Plan. The Council approved the purchase of a 2025 Prodigy 1860 Tunnel from Prodigy Boats at a cost of $56,060.96. This will replace the current rescue boat, a 30-year-old fishing boat. The new boat is capable of running in extremely shallow and rocky areas, and a custom-designed stern allows for extremely low sidewalls, which make victim rescue and recovery much easier and safer. 

• Three special event requests from UW-Stout were approved, including student move-in (August 23–31), the Homecoming Soap Box Derby (October 20), and the Homecoming Parade (October 25).