City Council passes ordinance creating Data Center Industrial District

A public hearing on Ordinance 2026-01 was held during the January 5, 2026, city council meeting. The ordinance amends portions of Title 10 of the city code regarding the definitions of warehousing and data centers, and establishes a new zoning classification, the I-4 Data Center Industrial District.

Seven members of the public addressed the council, all speaking in favor of the ordinance.

Under the current city code, data centers are included in the definition of “warehousing” and are permitted uses in Restricted Industrial Districts I-1 and I-2, as well as the General Industrial District I-3. The proposed ordinance removes data centers from the warehousing definition and restricts them to the newly created I-4 district.

The ordinance was first introduced at the council’s December 1st meeting and referred to the Plan Commission. The commission reviewed the proposal on December 8th and unanimously recommended approval.

Council member Brennen requested that the first reading of the ordinance not be waived. Mayor Knaack then read the ordinance in full. Council member Solberg made a motion to adopt the ordinance, which was seconded by Council member Schwebs.

Mayor Knaack noted that any future modifications to the I-4 district would require council consideration and a public hearing. Council member Yonko supported a suggestion raised during public comment that a town hall-style meeting would be a good forum for further discussion of potential changes. Brennen agreed and requested additional information on what would be required to organize such a meeting.

Council member Crowe noted that if the ordinance passed, Balloonist would need to request a rezone to proceed with the data center project. Any such request would require public notice and a public hearing.

The ordinance passed unanimously.

Housing ordinance

The council then considered a proposed ordinance amending Title 9, Chapter 2 of the city code regarding residential rental properties. Prior to 2017, the city conducted annual inspections of all residential rental units. However, 2017 Wisconsin Act 317 amended state law to prohibit routine inspections except under limited circumstances. City code was subsequently revised to allow inspections only when requested by a property owner or tenant.

An Ad Hoc Housing Committee was formed in early 2025 to identify ways to improve rental housing conditions. The committee is recommending the creation of a Neighborhood Stabilization and Enhancement District (NSED) and the implementation of proactive rental inspections within those districts. State law permits such inspections when there is evidence of blight, high rates of building code complaints or violations, deteriorating property values, and/or an increase in single-family home conversions.

The committee is also recommending rent abatement when violations found during inspections are not corrected within 30 days, as well as the addition of tenant retaliation protections.

Brennen, who chairs the Ad Hoc Housing Committee, addressed concerns raised during public comment about potential declines in property values within an NSED and the possibility of increased complaints just to receive rent abatement. She stated that there is no evidence to support claims that property values decline in NSEDs, noting that values often increase as properties are improved. She also explained that rent abatement would occur only after an inspection found violations that remain uncorrected after 30 days, and that property owners would have the right to appeal.

Council member Gentz made a motion to introduce the ordinance and refer it to the Plan Commission. The motion was seconded by Council member Solberg and passed unanimously. A public hearing on the ordinance is scheduled for the February 2nd city council meeting.

Kwik Trip rezoning request

Kwik Trip, Inc. submitted a request to rezone a parcel of land it owns adjacent to its 3M Drive store. The property was acquired after the store was constructed, and the company is seeking to align the zoning with its surrounding holdings.

The council introduced an ordinance to rezone the property from Restricted Industrial (I-1) District to Local Commercial (B-2) District and referred it to the Plan Commission. The commission will review the request at its January 26th meeting, with a public hearing scheduled for the February 2nd city council meeting.

Hive and Hollow receives "Class B" liquor license

Hive and Hollow submitted an application for a combination "Class B" Beer and Liquor license under the designation of a novelty shop. Restrictions on the license are determined by what percentage of their sales come from alcohol. Charis Collins from Hive and Hollow shared that the vast majority of their sales come from flowers. If liquor sales were to increase to more than 50% of total sales, they would be looking at a 21+ restriction on entering the store.

Council member Sutherland asked whether they would need to verify that alcohol sales remained below 50% of total sales. City attorney Ben Ludeman stated that it could be required for the annual renewal. 

A licensed bartender must be on the premises at all times. 

The application was approved. 

The next city council meeting will be held on Tuesday, January 20, due to the Martin Luther King Jr. holiday.