Gazette Daily News Podcast: Monday, Apr. 29, 2024

- Google Data Center would be among Cedar Rapids’ largest water and energy users

- Cedar Rapids City Council advances Higley Mansion rezoning

- Local Farmer’s Markets getting underway

Episode Transcript

Welcome to The Gazette’s Daily News Podcast for Monday, April 29, 2024. This podcast provides the latest headlines from the Gazette newsroom. I’m Becky Lutgen Gardner.

First, a proposed Google data center would be among Cedar Rapids’ largest water and energy users. However, the city says it has surplus water capacity for the proposed $576 million project. The city’s top 10 largest water users already use about 60 percent of the city’s average daily treated water.

If Google comes to town, the share of treated drinking water that is going to big customers—including ethanol plants, food processors, and the data center—could increase to 70 percent or more, given estimates city leaders provided to The Gazette.

The city says it has surplus water capacity, which is rarely needed except for the hottest weeks of summer. Drilling more wells along the Cedar River would be an option to increase the supply. Other Iowa communities with large-scale data centers are planning infrastructure upgrades to draw more water from rivers and aquifers.

Cedar Rapids City Manager Jeff Pomeranz spoke to The Gazette’s editorial board this month. He said, “There’s no question these facilities use a significant amount of water.”

Pomeranz said, “When we have a new economic development project, one of the first things we look at is, ‘Can we serve it?’ And if we can’t at this moment or can’t three years from now, what are the improvements that need to be made in order to provide for that need?”

Data centers use a lot of energy to run computer equipment—including redundant systems—and to cool it with water so that it runs continuously at a high level.

Google and Alliant Energy are negotiating a deal for one or more data centers in the Big Cedar Industrial Center at 76th Avenue SW and Edgewood Road SW.

The state has approved the city’s plan to grant $56 million in tax breaks, including a 20-year, 70 percent tax exemption. Google would be required to create at least 31 high-paying jobs.

Cedar Rapids leaders trumpeted the project for the future tax benefits and the way Google’s presence in the Corridor might spur other growth.

Dennis Jordan, Alliant Energies director of customer, community, and economic development, said a Google data center would be among the top 10 percent of Alliant’s electricity customers.

That large use of electricity is part of the reason Alliant, an investor-owned utility that serves nearly 1 million electric customers in the Midwest, has been trying to recruit data centers to its service areas.

Jordan says, “We view this as an opportunity to grow our business faster and allows us, as we bring these customers on, to spread our fixed costs among more electric sales. And that, in turn, allows us to keep our costs competitive in the long term.”

Alliant has proposed a separate rate hike unrelated to the data center, which the Iowa Utilities Board is currently considering.

A decision is expected this summer.

The application was filed without considering a possible data center. However, as part of the proceedings, the board asked Alliant to share more information about a data center. The company said Google would qualify for its Individual Customer Rate, a plan for customers using at least 25 megawatts of electricity. That amount is equivalent to powering about 12,000 homes.

Next, the Cedar Rapids City Council last week advanced a request to rezone Higley Mansion, which used to operate as a senior-living facility. The request would allow it to be turned into a residential rehab house that would offer voluntary treatment to those struggling with substance use issues.

The property at 860 17th St. SE has been vacant for a couple of years. The proposal would allow the property to be used as a residential inpatient and outpatient substance abuse treatment facility with 35 to 45 beds. It would be operated by Covenant Family Solutions with affiliated mental health services.

The property will be rezoned from Traditional Residential Flex District to Traditional Residential High District.

It still needs conditional use approval from the Board of Adjustment, which will be considered at the board’s 4 p.m. May 16 meeting. The council also must twice more approve the rezoning, probably at its noon May 14 meeting. Both meetings are in the council chambers at City Hall, 101 First St. SE.

If approved, the facility is slated to open in the spring or summer of 2025.

City Council member Scott Olsen said, “This is an important service for our community, and I think that there’s partners that have put this together that will strengthen our services that we have available in the community, but also, at the same time, bring what was a very unique complex back to life.”

Finally, signs of spring - the Marion Farmers Market reopens for the season this Saturday at Taube Park. It will be open every Saturday from 8 to 11 a.m. through Sept. 28.

Marion City Council members will hold their weekly office hours at the market. Every Saturday, one or more council members will be available to answer questions and have conversations during market hours.

Iowa City’s Farmer’s Market begins Saturday, May 4th.

Hiawatha’s Farmers Market opens on the first Sunday in May.

The first Cedar Rapids Downtown Farmers Market will be on Saturday, May 25, from 7:30 a.m. to noon.

Monday’s weather will be mostly cloudy, with a high near 64. Monday night will be mostly clear with a low around 45. Tuesday will be sunny, with a high near 76.

The Gazette's Business Breakfast Series will host its next event on May 7th. The focus is on retail. What's working when it comes to retail in downtown neighborhoods? What communities are getting it right? Join The Gazette with presenting sponsor the Cedar Rapids Metro Economic Alliance…and housing development panelists for a morning of networking and insight on this timely economic topic. Register now at thegazette dot com slash business breakfast.

Thank you for listening to The Gazette’s Daily News Podcast. I’m Becky Lutgen Gardner.