A farmer on a tractor sprays soybean crops. (Photo: Westend61/Getty Images.)
A new proposal from a business group has Ohio farmers concerned that state governments and utilities could seize private property to build data centers. The idea would also allow entities to seize land before the owner receives payment.
In a document we obtained, the Ohio Business Roundtable, a powerful industry group that lobbies the Statehouse, recommended that lawmakers amend eminent domain law and “should expand tenure authority to energy infrastructure projects after establishing their public utility and necessity.”
“We are aware of efforts to further weaken the limited landowner protections that allow for quick repossession of property without having to pay for it and determine landowner rights and compensation through the courts,” said Evan Callicoat of the Ohio Farm Bureau.
Callicoat said Farm Bureau is not opposed to data centers, but is opposed to infringement on property rights. He fears the proposed idea is so broad that farmers could lose their land to data centers without being paid for months or years.
Nick Rhodes from the Round Table said it shouldn’t be used that way.
“It wouldn’t really meet the public use threshold; there’s the infrastructure issue, and I think that’s an open question,” Rhodes said.
The program is called “deposit and build” and is modeled after a system used in 45 other states.
Current public domain law allows federal, state, and local governments to seize property for public apply. The Ohio Power Siting Board controls the installation of public utilities, including power lines, some natural gas pipelines and wind farms. The Ohio Public Utilities Commission can also lend a hand utilities acquire land.
The utility company will ask the homeowner for the land and must provide him with a “fair” market price. If the owner refuses to sell, the utility will take him to court and will have to establish the “necessity” of the land. If the court sides with the public utility company and deems it necessary, the assessed value of the land is transferred to the court account. However, the owner can appeal this decision and fight for more money. While the court battle continues, construction cannot begin.
Rhodes said that once a court determines that the land can be taken by the state or utility company, construction should be allowed to begin. Currently, lawsuits could delay these projects for years, he added.
“The entity should be able to take over the company and continue with its project, and then damages appeals can be filed,” Rhodes said.
Landowners deserve their day in court, Callicoat said, adding that no one should take land before money changes hands.
“Allowing any other type of development to have this structure and process would just be very, very bad for our state,” he added in the interview. “Our farmers are definitely concerned about this.”
Data center companies don’t have authority in this area, but Callicoat says this release will eventually allow it.
“A lot of the services and utilities that they need have that authority,” he said.
I asked State Senator Brian Chavez what he thought about the deposit and construction idea.
“It’s a very hot topic,” Chavez replied. “I don’t think we’re ready to deal with something like this in such a short amount of time.”
Still, I insisted he see his view.
“Do you agree with the people who spoke today and on day one who argued that data centers are part of the public good?” I asked him.
“I don’t know how to quantify a public good, but it is a public necessity,” the Republican replied. “They are part of our lives and everything we do.”
He noticed that all the cameras were filming him and added that the data had to go somewhere.
“It is ubiquitous,” Chavez said. “It’s a necessity.”
Callicoat said if data centers are a necessity, it could pave the way to easing land grabs.
Even if data centers aren’t the primary target for a significant domain change, he said his members won’t support a takeover of their land where they won’t even get paid for years.
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This article was originally published on News5Cleveland.com and are published in the Ohio Capital Journal under a content sharing agreement. Unlike other OCJ articles, it is not available for free republication on other news outlets because it is owned by WEWS in Cleveland.
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