- The Mishawaka Common Council updated a 2014 ordinance to solidify Mishawaka Utilities' claim to provide water and sewer services to the planned Microsoft data center location.
- This action comes amid a dispute with St. Joseph County officials and Granger Water LLC, which also seek to service the area.
- Mishawaka officials argue their existing infrastructure and investments, including the new Juday Creek wellfield, make them the logical provider.
- County officials contend Microsoft's water needs are less than initially anticipated and could be met by alternative means.
- The disagreement highlights the importance of the "first in time" rule at the Indiana Utility Regulatory Commission for establishing service territory.
(This story has been updated because an earlier version contained an inaccuracy.)
MISHAWAKA — The Common Council took steps to protect its ability to provide a water and sewer utility territory outside the city limits because of what city officials said was confusion over services that will be part of the Microsoft data center planned for the former St. Joe Farm.
The council amended an ordinance that gives Mishawaka Utilities the ability to expand water and sewer services up to four miles from its city limits, toward the north and east. The ordinance updates a similar measure the council passed in 2014, and the city plans to file the paperwork as soon as possible with the Indiana Utility Regulatory Commission (IURC).
City officials said the measure protects the city's investments over its service area and any future utility expansions. The amended ordinance also is a response city officials believe is needed to determine which utility agency is expected to serve the future home of a Microsoft data center planned for the 900-acre property formerly at St. Joe Farm.
Much of the Monday, April 14, meeting on the measure was a debate between the city and several county officials over what utility services Microsoft needs to use in the cooling capacities of its operation.
"It modernizes the language from the 2014 (ordinance) to align with current law," Matt Lentsch, director of governmental affairs, said. "… Make no mistake, this is an urgent request. Granger Water (LLC) and St. Joseph County Regional District has signaled their clearance to serve the same territory despite our decades of planning investment and existing service."
Lentsch explained that the county agency "made clear of their intention of filing a competing claim with the Indiana Utility Regulatory Commission."
This is important, Lentsch claimed, because the IURC has a "first in time" review standard when it pertains to establishing utility service. "That means that whichever utility files its ordinance first has the upper hand, not just for Microsoft but potentially for future utility service in the entire northeast quarter."
County officials, meanwhile, objected to the council's ordinance.
Dan Schaetzle, president of the County Council, said he was disappointed in the council's ordinance, saying that he originally thought Mishawaka was not seeking to annex the St. Joe Farm property should it provide utilities there. He claimed that at a meeting a month later, city officials said they wanted to annex the property.
"I feel misled, and I think other members of the (county) council feel misled as well. This is not the way we should be working," Schaetzle said.
County Board of Commissioners President Carl Baxmeyer spoke in opposition to the Mishawaka ordinance, saying that while Amazon's data center discussions near New Carlisle centered on the water needs it would require for its cooling processes, Microsoft has indicated it has less intense water needs.
"As time went on, as we worked with Microsoft towards the development, we were informed that … their process uses a different system," Baxmeyer said. "… and the company, in working towards a developmental agreement, asked the county if there were alternatives."
Baxmeyer said he had a conversation with Mishawaka Mayor Dave Wood a couple of weeks ago, telling him things changed when county officials learned that Microsoft did not require extensive water and sewer services. "And I said that to the mayor and, doing his job, (he) said we are going to have to remonstrate against this."
"I get it. You want to capture the tax base," Baxmeyer said. "But look at it from the company's point of view. They don't need city water and sewer. They can use the alternative of using the St. Joseph Farms water system and they can tie into the Granger sewer."
Ken Prince, director of planning and community development, however, said he was concerned that the partnership between the county and city regarding the Microsoft project was lacking when the city sought information about the utility questions regarding Microsoft.
He said based on one meeting with St. Joseph County Redevelopment Commission Executive Director Bill Schalliol, he learned the St. Joseph County Regional Sewer District had plans to buy Granger Water LLC, currently serving less than 40 homes. Other steps were discussed, but, Prince said, the matters were not being done in any public meetings.
"These have been done, essentially, in darkness, rather than being publicly debated," Prince said.
Also, Prince said, the new $40 million Mishawaka Juday Creek water wellfield that opened last year on Veterans Parkway was built to handle not only the current city water use but the anticipated future uses based on the 2003 Capital Avenue land use plan the city and county entered into that includes the Microsoft site.
"We currently built a 747 that has available seating for all this, and they are the equivalent of a Cessna," Prince said. "And to serve Microsoft, (they would) have to build another plane to serve the site. In our mind, that doesn't make sense, and we feel like it's an obligation to our 60,000 customers that we have a seat at the table and that these items are discussed."
Email Tribune staff writer Greg Swiercz at gswiercz@gannett.com.
