Council reaffirms denial of crypto mining permit – Brainerd Dispatch

BRAINERD
—
The
company
proposing
to
bring
a
new
cryptocurrency
mining
facility
to
Brainerd
has
not
given
up
yet.

After
the
City
Council

denied
an
interim
use
permit

for
outdoor
storage
units
on
a
property
in
the
industrial
park
earlier
this
month,
VCV
Digital
Infrastructure
now
has
its
sights
set
on
a
building.
Community
Development
Director
James
Kramvik
told
the
council
Monday,
July
16,
of
the
update.
He
said
the
Economic
Development
Authority
and
the
Brainerd
Public
Utilities
Commission
—
both
of
which
have
contracts
with
VCV
for
land
and
power
purchases
—
are
working
to
schedule
a
joint
workshop
to
discuss
what
the
council’s
latest
action
means
for
the
future
of
the
company
in
Brainerd.
The
council,
Kramvik
said,
will
be
invited
to
take
part
in
that
workshop.

Council
members
voted
6-1
Monday
to
formalize
the
list
of
reasons
for
denial
of
an
interim
use
permit
that
would
have
allowed
VCV
Digital
to
construct
26
storage
containers
to
house
their
data
machines
and
cooling
towers
at
1918
Thiesse
Drive.
Staff
presented
the
council
with
a
list
of
reasons
for
the
denial,
as
previously
discussed
by
both
council
and
Planning
Commission
members.
The
reasons
stated
include:

• The
  project
  is
  expected
  to
  consume
  25
  megawatts
  of
  power.
• The
  project
  fails
  to
  materially
  increase
  local
  employment,
  as
  only
  16
  jobs
  are
  expected
  to
  be
  added.
• One
  job
  is
  expected
  to
  be
  created
  for
  every
  1.5
  megawatts
  of
  power
  usage,
  which
  is
  not
  an
  efficient
  use
  of
  the
  city’s
  assets.
• Over
  100
  homes
  could
  be
  powered
  for
  every
  one
  employee
  working
  at
  the
  facility.
  The
  high
  energy
  demand
  is
  potentially
  detrimental
  to
  the
  city’s
  ability
  to
  prepare
  for
  future
  housing
  needs,
  as
  the
  2020
  Crow
  Wing
  County
  housing
  study
  stated
  4,800
  additional
  units
  must
  be
  created
  between
  2018-33
  to
  meet
  regional
  demands.
• The
  facility
  would
  operate
  24
  hours
  a
  day.
• A
  sound
  study
  shows
  nearby
  residential
  properties
  could
  experience
  nighttime
  sound
  levels
  higher
  than
  the
  50
  decibels
  A,
  a
  measurement
  of
  how
  loud
  a
  sound
  is
  perceived
  by
  the
  human
  ear,
  a
  standard
  set
  by
  the
  Minnesota
  Pollution
  Control
  Agency.

An
additional
reason
for
the
denial
originally
listed
dealt
with
carbon
neutrality,
stating:
“The
power
for
this
facility
would
be
purchased
from
the
grid
and
will
be
the
responsibility
of
the
city
in
the
future
when
the
city
is
required
by
the
State
of
Minnesota
to
use
entirely
carbon-free
electrical
sources
by
2040.
The
city
utilizes
hydro-electric
power
and
has
recently
partnered
with
AEP
to
construct
solar
fields
to
become
more
carbon
neutral.
This
facility
greatly
increases
the
energy
needs
for
the
city
and
will
make
it
significantly
more
difficult
in
the
future
to
meet
the
state
mandate.”

Council
member
Jeff
Czeczok
requested
that
portion
be
removed,
as
he
said
it
was
not
true.
He
said
VCV
Digital
has
purchased
renewable
energy
credits
from
BPU,
thereby
making
it
carbon
neutral,
as
carbon
neutrality
is
based
on
how
energy
is
created
and
not
how
it’s
used.

“So
I
feel
like
we’re
going
down
a
slippery
slope,”
Czeczok
said.

When
asked
if
he
had
anything
to
add,
Interim
Public
Utilities
Director
Patrick
Wussow
said
he
did
not.
When
asked
if
he
disagreed
with
Czeczok’s
statements,
Wussow
said
he
did
not.

Czeczok
motioned
to
approve
the
denial
reasoning
with
the
carbon
neutrality
portion
removed.

Council
member
Kara
Terry
she
believes
the
language
is
broad
enough,
so
she
would
not
support
the
motion.

“For
example,
‘The
city
utilizes
hydroelectric
power
and
has
recently
partnered
with
AEP
to
construct
solar
fields
to
become
more
carbon
neutral,’
is
a
fact.
It’s
not
questionable.
No
one
has
to
be
an
expert
in
carbon
neutrality
to
be
able
to
state
that,”
Terry
said.
“I
would
leave
that
entire
section
in
there.
I
think
it
makes
sense
to
drive
the
point
home
and
furthers
our
denial
of
this
IUP.”

Council
President
Kelly
Bevans
said
he’d
support
the
motion,
as
believes
it
reflects
the
will
of
the
council
and
what
the
majority
of
council
members
believe
is
best
for
the
city.

Terry
was
the
only
vote
against
the
amended
list
of
denial
reasons,
which
does
not
include
the
portion
about
carbon
neutrality.

VCV
has
30
days
from
the
denial
of
the
permit
to
appeal
the
action
to
a
district
court.

THERESA
BOURKE
may
be
reached
at

[email protected]

or
218-855-5860.
Follow
her
on
Twitter
at

www.twitter.com/DispatchTheresa

.