FLOYDADA, TX – The Floyd County Commissioners Court has released an open letter to county residents addressing the ongoing discussion surrounding proposed data center development in the county.
The letter comes as many Floyd County residents continue to voice concerns about the potential impact of a large-scale data center, including questions regarding water usage, electrical demand, rural quality of life, and the long-term effects such a project could have on the community.
At the same time, county officials say they understand those concerns and want residents to know what authority the county does and does not have under Texas law.
FULL OPEN LETTER FROM FLOYD COUNTY COMMISSIONERS COURT:
An open letter to the Citizens of Floyd County,
This open letter is to share the concerns and feelings of the Commissioner’s Court with those we represent.
The Data Center issues we are dealing with were thrust upon us, early this year. This certainly was not “on the radar”
prior to January. First, we live here and love our communities and our county and will always strive to do what is best
for those we represent and ensure the future we must pass on to our children.
Here are a few facts. First, Floyd County has very limited regulatory authority to control any of this, and there
are few tools we have to manage the situation. The Court has passed a resolution calling on the State Legislature to
do their due diligence, to evaluate the long-term consequences of these developments, but unfortunately, the “cat is
out of the bag” and we expect no action from them for at least a year. Second, Texas has a long and proud history of
Private Property rights and very limited regulation. That is why they (data centers, etc.) are here! Once they have
purchased land, they can do with it as they please, barring any illegal activity, just like anyone else. We must be
cautious about what we wish for here, if there is future legislation to allow the State, or the County to regulate Data
Centers, all landowners would be equally subject to that authority. None of us want to be told what we can and
cannot build or do with our property.
Again, the County has no authority to zone areas or restrict the development of private land except that
which is statutorily given, for example: reinvestment zones, gaming rooms, subdivisions, and landfills. The County
cannot enact moratoriums or take any action not expressly granted by law. Local governments that have tried have
been met with lawsuits and referrals to the Texas Attorney General’s Office for committing illegal actions. At this
point, the Great State of Texas cannot either. The State can only limit development on private property when the
development is subject to regulation by a State Agency. An example would be runoff water controlled and regulated
by TCEQ.
Next, the use of the 312 Tax Abatement process. Some might argue no tax abatement, and this was certainly
our initial thought. However, after many training conferences and direct discussions with other counties where this is
already underway, we have learned some very valuable insight. The Tax Abatement process is the only effective
mechanism of control we possess to regulate these developments, through stipulations and requirements contained
therein. The Floyd County Commissioners Court may only consider a 312 Agreement, if the development meets two
requirements: (1) that the data center must be an air-cooled system and (2) that the development must have the
ability to produce all the electricity that is needed to operate, preventing competition for power in times of shortage
with local resident, farmers, and businesses. The requirement for the air-cooled system is to conserve our limited
water resources. With no ability to “require” an air-cooled system, any development has the unlimited right to
produce ground water. One final thought here, without getting into the intricacies of the State Tax Code, the 312
Agreement gives the citizens of Floyd County a steady and predictable payment in lieu of taxes (PILOT) income from
the development over a long period of time, regardless of their depreciation schedules and operation fluctuations.
Lastly, the use of Non-Disclosure Agreements or commonly called an NDA. The Floyd County Commissioners
Court has not entered, nor will we consider an NDA for current development. The Commissioners Court firmly
believes in and supports transparency of government. All of us are open to any questions, any time.
Please understand again, we are doing all we can with the limited tools we have to manage a tough
situation. There is development in every county around us. No one invited these disruptions to our rural counties, yet
here it is. We must all strive to face this situation with Strong West Texas, Floyd County Resolve and hope, that
through this current development there might be a few silver linings.
Thank you for your time,
The Floyd County Commissioners Court
