Proposed MC ordinances restrict Bitcoin, data mining operations

Opponents of Bitcoin mining came to a recent Mountain City Planning Commission meeting bracing for the worst, but walked away with a pleasant surprise. The commission approved two zoning ordinance amendments during its Thursday, Jan. 22, meeting. The first limits "Data Mining Centers" to M-2 Manufacturing Warehouse districts; Mountain City does not have any districts of this type. "We can't ban [data mining centers] outright because it creates a legal situation that judges and lawyers would have to handle," First Tennessee Development District Community Planner Cory Haggard said. "So we're putting it in our most restrictive zone, like we have done with other things that we essentially don't want to see in town." For an M-2 district to be created in the future, it would have to be approved by the planning commission, be the subject of a public hearing, be approved by the Board of Mayor and Aldermen twice, and meet "very thorough" stipulations for spot-zoning, Haggard said. The amendment defines data mining centers as facilities that host computer systems for the purpose of handling "large volumes of digital data." It lists "Cryptocurrency Mining Operations, such as Bitcoin mining" and "General Data Processing Facilities, such as those used for artificial intelligence" as two examples. A small crowd attended the meeting. Two people — a Mountain City resident and a Johnson County resident — gave public comments expressing their opposition to bitcoin mining operations. The commission's vote was unanimous, with commission member Richard Walsh absent. After motioning for the vote, Mayor Jerry Jordan expressed disappointment in citizens who thought the amendment was a "backdoor deal" to let cryptocurrency mining operations into town. The other three in-attendance members spoke and echoed Jordan's sentiment. "We're not somebody who just flew in from outer space and is gonna make decisions without considering anything. We've been here all our life," Chair Karen Cunningham said. "So let's try to be respectful, please." Site plans The second amendment creates more specific criteria for when someone needs to submit a site plan to the planning commission and what it needs to contain. "This would require much more from potential developers," Haggard said. The amendment states that "all new commercial developments or redevelopments" in non-residential districts and Planned Residential Development (PRD) districts need a site plan. "Multiple duplexes, two-family, multi-family, group housing project, planned unit development, condominium development, public or semi-public use and wireless transmission facilities" will also need a site plan. Site plans "shall be submitted no less than 14 days in advance" of planning commission meetings, according to the amendment. The amendment gives detailed requirements in the following areas: general provision; buffer strip; off-street parking and access; waste disposal; mechanical equipment; service, loading, and equipment storage areas; outdoor storage and sales of merchandise; utility lines; lighting; storm-water drainage. "Approval of a site plan shall expire six (6) months after the date of its approval unless a building permit has been issued and substantial progress has been made toward completion of the project," according to the amendment. Both amendments must pass a first and second reading by the Board of Mayor and Aldermen before being implemented. There will also be a public hearing, where residents can give their input. City Recorder Audra Gerty said residents will be able to read the amendments at Mountain City Town Hall after the first reading, which will be on Tuesday, Feb. 3.