BRAINERD — The Brainerd City Council has taken another step toward limiting cryptocurrency mining activities in the city.
Council members voted unanimously on Monday, Aug. 5, to have staff draft an ordinance that would remove cryptocurrency mining, data centers, artificial intelligence centers and other similar uses as acceptable uses for outdoor storage facilities. Those practices would still be allowed in the buildings, provided they meet local, state and federal requirements.
“If you don’t want it stored outside … I think if we just let everyone know up front, they’d be happy,” said Mayor Kelly Bevans.
The decision comes after councillors rejected a temporary use permit granted by VCV Digital Infrastructure in July for an open storage facility in the industrial park to be used as a cryptocurrency mining facility.
The company proposed building 26 40-foot-tall storage containers to house data machines and cooling towers for the operation at 1918 Thiesse Drive. Council members granted the business a permit for 12 20-foot-tall containers and 12 cooling fans in 2022, but that permit expired after VCV failed to make any improvements to the site within a year of issuance.
The request to ban crypto mining in open-air storage facilities came from Sarah Thiesse, one of several nearby residents who live near the property in question and oppose VCV’s proposal. Thiesse and other residents’ concerns included noise from the 24/7 facility and potential environmental impacts. Bevans agreed to put the issue on the agenda for Monday night’s meeting.
While questions were raised about a cryptocurrency mining facility currently operating in the industrial park, Council member Gabe Johnson asked why the two businesses were being treated differently.
Just For Krypto operates a temporary use permit approved by the council on Kitty Hawk Court, where cryptocurrency mining is considered a side use and not a main use. The property owners own three parcels of land there, and the crypto operation is technically located on a separate parcel from the main use, prompting Johnson to question whether it was actually being operated as a main use and not a side use. Community Development Director James Kramvik said that under past staff, the city has often treated adjacent parcels belonging to the same person as a single property, and that sometimes applies to schools. He said one of his goals is to go around the city and consolidate such properties to ensure they comply with city zoning laws. He said he plans to work with Just For Krypto owners on the issue.
With several options available to them Monday night, the council agreed to have staff members draft an ordinance that would ban cryptocurrency mining and other aforementioned practices as outdoor storage uses. The ordinance will first go before the Planning Commission, which will hold a public hearing on the matter.
Council member Mike O’Day noted that one of the advantages of having cryptocurrency mining done indoors is that if a crypto company decides to leave, the building will remain for future use, as opposed to having empty storage containers on a property.
The city’s Economic Development Corporation, Public Utilities Commission and City Council will hold a workshop at City Hall on Tuesday, Aug. 6 at 5 p.m. to discuss VCV Digital’s plan to construct a building to replace outdoor storage containers on its Thiesse Drive property.
THERESA BOURKE can be reached at:
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Theresa Bourke started at the Dispatch in July 2018, covering Brainerd municipal government and area education, including Brainerd Public Schools and Central Lakes College.