STAFF REPORT
Glasgow News 1
Cave City is asking a judge to dismiss a lawsuit over its one-year moratorium on data center applications, arguing the company behind a proposed project never submitted a valid development plan and therefore cannot challenge the ordinance.
Attorneys for Cave City, the Cave City Council and the Joint City-County Planning Commission filed motions in Barren County Circuit Court responding to a complaint by Kentucky Industrial Alliance LLC, which is pursuing a data center project at an industrial park in the city.
Kentucky Industrial Alliance filed the lawsuit on June 8 in Barren County, alleging the city unlawfully adopted a one-year moratorium on data center applications and that the Joint City-County Planning Commission failed to process its development plan application.
A hearing is scheduled for July 20 on the company’s request for a preliminary injunction that would temporarily block enforcement of the moratorium while the case proceeds.
In a motion filed June 29, attorneys Aaron D. Smith and Josie F. Keusch of the Bowling Green law firm English, Lucas, Priest & Owsley argued the lawsuit should be dismissed because Kentucky Industrial Alliance has not suffered a legally recognizable injury.
Central to the city’s argument is its claim that the company never submitted an actual development plan under Cave City’s ordinances.
According to the lawsuit, Kentucky Industrial Alliance submitted only a two-page application form on May 11 and did not include the required development plan, engineering drawings or other supporting materials.
The motion states that because no valid development plan was filed, Kentucky Industrial Alliance cannot claim the subsequent moratorium prevented its proposal from being considered and cannot assert any vested rights based solely on buying property, entering an option agreement with a data center developer or paying fees.
The Joint City-County Planning Commission echoed many of the same arguments in its response filed July 1, acknowledging receipt of a development plan application but stating that no development plan accompanied it.
Because of that, the commission argued, no public hearing on the proposal was required, and it has asked the court to dismiss the claims against the commission.
The commission also told the court it does not plan to take further action on the application until the litigation is resolved.
Kentucky Industrial Alliance has argued the moratorium unlawfully halted its proposed data center project after it submitted its application and invested millions of dollars assembling land and preparing the property for development.
In a separate but related case, another lawsuit filed June 30 challenges Cave City’s annexation of approximately 245 acres into the city limits, land that is part of the proposed data center development.
Key Facts
– Cave City and the Joint City-County Planning Commission have filed responses in a lawsuit over a data center moratorium.
– The city says Kentucky Industrial Alliance never submitted a valid development plan, only a two-page application.
– Officials argue the company lacks standing and has no legally recognized injury or vested rights.
– Kentucky Industrial Alliance claims a one-year moratorium unlawfully halted its proposed data center project.
– A July 20 hearing is set on the company’s request for a preliminary injunction against the moratorium.
– A related lawsuit challenges Cave City’s annexation of about 245 acres tied to the project.
