EDA will act as “pass through” for city funds to initiate the study.
Fredericksburg City is taking preliminary steps towards determining whether a data center can be constructed on several parcels of land in Celebrate Virginia South.
On Monday, the Fredericksburg Economic Development Authority agreed to accept $200,000 in city funds to initiate a feasibility study with Dominion Energy Virginia.
“The request is to develop a feasible transmission route(s) to serve economic development projects that include up to two million square feet of data centers within identified City areas,” reads a draft letter prepared for the EDA to send to Dominion.
Baroody said in an email to the Advance on Monday afternoon that “normally, a developer/landowner would pursue this feasibility work.”
“City Council has directed staff to study the potential for data center development in the Celebrate Virginia South area,” he continued. “We are simply executing on that direction as a jurisdiction.”
The City Attorney recommended that the EDA, rather than the City, initiate the feasibility study, City Manager Tim Baroody told EDA members on Monday.
The EDA will act as a “pass-through” for the $200,000 downpayment on the feasibility study. Baroody said the funds will “hopefully be recouped [by the City] at the back end.” If a developer is found for the site, the funds can be rolled into the infrastructure needed.
Baroody said Dominion has estimated the feasibility study will take “four to six months” to complete.
City Council will vote on whether to transfer the $200,000 to the EDA for the study on August 29, Baroody said.
By Adele Uphaus
MANAGING EDITOR AND CORRESPONDENT
Email Adele
