A meeting watcher sent us a document from this week from City of Reno Planning Manager Mike Railey to Kimley-Horn and Associates indicating a conditional use permit has been granted to develop the Ward 1 Keystone Data Center, with future overnight business operations.
A conditional use permit (CUP) is a special permit that allows a property owner to use their land in a way that is not permitted by the zoning classification.
The reader reported that six people posted in favor of the change at 265 Keystone Ave., all related to the current owners, members of the powerful Dolan family.
More than 20 people posted in opposition, with concerns ranging from increased energy and water consumption, a strain on Reno’s power grid, reduced quality of life for nearby residents and needing more clarity on local regulations concerning data centers, to counter a growing number of projects presenting as warehouses to become data centers.
A City of Reno document for conditional use permit applications indicates “the granting of the conditional use permit will not be materially detrimental to the public health, safety, or welfare. The factors to be considered in evaluating this application shall include: Property damage or nuisance resulting from noise, smoke, odor, dust, vibration, or illumination; and any hazard to persons and property.”
“I am a resident of Reno and I am writing to express my opposition to converting empty buildings to data centers in Reno. This seems extremely short sighted and absolutely against the best interests of the Reno/Sparks community. This will only exacerbate the worsening climate related crises we are already seeing and removes community spaces,” one concerned resident wrote.
Another wrote a detailed, experience and research-based email to the planning commission calling it a disaster for the neighborhood.
“If it gets built we will have to drive past it everyday. 265 Keystone was a blighted property and acquired by the City of Reno in 2002 during the RETRAC. This property was stated to be part of the ReImagine project and was supposed to benefit the community, and include mixed use properties including retail and residential.
In 2020 it was sold to PF RENO III LLC managed by James Aldrich of Malibu, California for $1.7 million. In 2022 it was sold to 265 Keystone LLC including brothers Shane and Breck Dolan (cousins of the auto group and owners of Shandy Dolans on Keystone and 2nd) for $4 million,” they wrote.
“The Dolans were going to develop an event space called Grand Artique. They did a lot of cleanup and had a Burning Man party there Oct. 15th, 2022 which I attended and have pictures of. They were offering shares of the business at $50,000 and I toured the property and listened to a presentation in November 2022. I liked the idea and was tempted to buy a few shares but I wasn't comfortable with their ability to raise enough funds. Then they went silent and the property was used for storage. The property is still in the name of 265 Keystone LLC, but a different entity is asking for the conditional use permit. Probably the sale is contingent on getting the permit and contingent of transfer of the permit with the property.”
The reader then raised concerns over the possibility of this permit following the property, rather than the new owners applying themselves for the new use.
Those in favor said the new data center will make Reno more competitive in the digital economy and rejuvenate the 3.26 acre site, which despite multiple owners and different endeavors in recent years, has been a vacant site of late.