HomeMy WebLinkAbout12/15/2021 - Planning Commission - Minutes - RegularPlanni ng Commi ssi on Meeti ng
M INUTES
Wednesday, December 15, 2021, 7:00 P M
Work Session 6:00P M Council Chambers Conference Room, City Hall, 114 North
Broad Street:
WORK SE SSI ON
1.C all to Order
A work session of the Planning Commission of the City of Salem, Virginia, was held
in C ouncil C hambers Conference Room, C ity Hall, 114 North Broad Street, at 6:30
p.m. on December15, 2021; there being present the members of said Commission, to
wit: Vicki G. Daulton, Chair; Denise P. King, Vice C hair, Reid A. Garst II, J ackson
Beamer, and Neil L. Conner; together with Charles E. Van Allman, J r., Director of
C ommunity Development, Mary Ellen Wines, Zoning Administrator, and J im H.
Guynn, J r., City Attorney; and the following business was transacted:
C hair Daulton called the meeting to order at 6:09 p.m. and reported that this date,
place, and time had been set for the Commission to hold a work session.
2.New Business
A.Discussion of items on the January 12th agenda
1. C odes changes - Subdivision and site plan
2. Rezoning 630 Union Street - HM to HBD
3. Rezoning 407 East Burwell Street - RB to T BD
4. Special Exception Permit 2936 West Main Street - Massage Parlor
C ode C hanges - Subdivision and Site Plan: discussed adding minor site plan and
allowing subdivision site plans to be approved administratively.
Rezoning 630 Union Street from HM to HBD: discussed multitenant commercial
building.
Rezoning 407 East Burwell Street from RB to T BD: discussed rezoning to allow
for a larger sign.
Special Exception Permit for 2936 West Main Street - Massage Parlor: discussed
difference between massage therapists and massage parlors.
B.Discussion item on the December 15th agenda
1. Use Not Provided For - 1401 Southside Drive - crypto mining
Use Not Provided For Permit - request of Sia Asset Management, LLC, applicant,
and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For
Permit to allow crypto mining at 1401 Southside Drive, Tax Map #165-4-2.1:
discussed what crypto mining was and utilities needed; sound nuisances.
C .Discussion of proposed bylaws
1. C ontinue the discussion of bylaws
Bylaws discussed and Member Garst suggested two changes.
3.Adjournment
C hair Daulton inquired if there were any other items for discussion and hearing
none, adjourned the work session at 6:57 p.m.
RE GU L AR SE S SI ON
1.C all to Order
A regular meeting of the Planning C ommission of the C ity of Salem, Virginia, was
held after due and proper notice in the C ouncil C hambers, C ity Hall, 114 North
Broad Street, Salem, Virginia, at 7:00 p.m., on December 15, 2021. Notice of such
hearing was published in the December 2 and 9, 2021, issues of the "Salem Times
Register," a newspaper published and having general circulation in the C ity of
Salem. All adjacent property owners were notified via the U. S. Postal Service.
T he Commission, constituting a legal quorum, presided together with J im H. Guynn,
J r., City Attorney; J ames E. Taliaferro, II, C ity Manager and Executive Secretary,
ex officio member of said C ommission, to wit; C harles E. Van Allman, J r., Director
of C ommunity Development; and Mary Ellen Wines, Zoning Administrator; and the
following business was transacted:
C hair Daulton called the meeting to order at 7:01 p.m.
2.Pledge of Allegiance
3.C onsent Agenda
A.Minutes
Consider acceptance of the minutes from the November 10, 2021, work session and
regular meeting.
4.New Business
A.Use Not P rov ided F or P ermit
Hold public hearing and consider request of Sia Asset Management LLC, applicant,
and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For
Permit to allow crypto mining at 1401 Southside Drive, Tax Map # 165-4-2.1.
Hold public hearing and consider request of Sia Asset Management, LLC, applicant,
and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For
Permit to allow crypto mining at 1401 Southside Drive (Tax Map #165-4-2.1).
Staff noted the following:
“Cryptocurrencies are not issued or backed by the U.S. government or any other
government or central bank. C ryptocurrencies are a form of digital currency used in
electronic payment transactions—no coins, paper money or banks are involved;
there are zero to minimal transaction fees; transactions are fast and not bound by
geography; and, similar to using cash, transactions are anonymous.”
“All digital currency transactions are recorded in a virtual public ledger called the
“blockchain,” which is maintained by digital currency “miners.” T hese miners can
be anyone, anywhere in the world, who is willing to invest in the specialized
computer hardware needed to rapidly process complex computations. Miners are
awarded digital currency for verifying each transaction and adding it to the
blockchain.”
T here is a cap on the number of “coins” produced and the time it takes to create
each coin increases over time. T his process utilizes multiple computers, processors,
and servers which produce a lot of heat, which require a lot of cooling, in which all
use an enormous amount of electricity which can increase the carbon emissions.
In researching this type of business, as there are none locally, it has become
apparent that in addition to the carbon emissions concerns, the noise level of the
HVA C systems required to keep these systems cool, can be detrimental to
neighboring properties.
T he applicant has discussed the electric service with the Building Inspections
Division. An 800-to-1000-amp service has been requested. C /Net reported that one
bitcoin (a type of cryptocurrency) takes 1,544 kWh to complete. T his is equivalent
of approximately 53 days of power for the average US household. T he goal for the
applicant is to have 150 Asic Pro A19 computers at completion.
T here are few if any jobs created in association with this type of business. A
business license will be required, and the city would receive tax on any equipment
in addition to the sale of electricity.
Edward "Teddy" Dyer, 357 Penguin Lane, property owner, appeared before the
C ommission and stated that he also owns the three properties beside 1401 Southside
Drive; he stated the crypto mining business would not impact anything as it would
all be inside the warehouse and doesn't change anything; the tenant to be has
requested that the City of Salem provide additional electrical service to the
building; there is no outside impact to the structure or any changes that will need to
be done to the structure; the tenant to be informed him that there will be
approximately 16 server racks that will be mining; there will be one person on site to
manage the facility; the tenant to be has also already spoken to the C ity about
adding three-phase power to the back of the building to meet the energy needs; the
tenant has committed to a three-year lease with up to a five-year extension; the
tenant to be also owns other businesses in the City of Salem; he requested that the
C ommission approve the request.
Member Garst questioned if 3-phase, 480 is being requested and how much total
power would be for the service.
Mr. Dyer stated that they are requesting 3-phase, 480; and the tenant expects the
electric bill to be somewhere between $16,000 and $20,000 a month. He stated that
the tenant to be currently has the business set up somewhere else and that is what
they are currently paying a month. T he location where the tenant is currently
located does not have as much space; their process has been proven for them. He
performed a credit check on the individuals and everything has been good on his
part as a land owner.
Member C onner questioned if the HVA C system would have to be upgraded for the
business.
Mr. Dyer stated that it would need to be--adding two 5-ton units has been discussed
and they would be ground-mounted units so there wouldn't be any changes to the
building. T he proposed units wouldn't have any more noise than a couple of big
commercial units. He further stated that the tenant hasn't determined if they will use
chilled water or air to cool the facility as it depends on the type of servers
available. T here are exhaust fans already in the building to circulate air, which
could keep the servers at the correct temperature--it's trial and error to determine
what is the best way to keep the servers at the correct temperature.
Member Garst noted that the Commission's biggest concern is the noise associated
with cooling the facility. Based on research, that has been the biggest complaint
regarding this type of business--noise from the HVA C units.
Mr. Dyer stated that the building is already an conditioned space. It is 5,000 square
feet--2,000 square feet is office space and will remain office space and the servers
will be boxed in an approximate 12'x25' area so the entire structure will not be
cooled, just that box. T he units the tenant has proposed to place are equivalent to
two residential units.
T he Commission questioned why no one representing the business was present as
they have questions.
Mr. Dyer stated that he does not know the answer to that as he was doing his part as
the property owner. He further stated that noise-wise he doesn't feel there will be
any more noise than anywhere else. If he were to place two A/C units on the
structure himself it would be permitted. T he closest residential property is the farm
which is 500 yards away. He stated that there would not be anymore noise than a
typical A/C unit running in an industrial area.
Member Garst noted that it's 1,000 amp, 480-volt.
Mr. Dyer stated that it is correct. T he business is power related--the business can
do only have so many servers based on power capacity. Southside Drive gives
them the opportunity because there are only so many places in the Roanoke Valley
that have that type of power that's accessible. T here is already 3-phase power to
the building, but it's small 3-phase so they have been in contact with the Electric
Department to make this happen. T he infrastructure is already there for the power
upgrade.
Member C onner questioned if the tenant intends to scale the business.
Mr. Dyer stated that if they scale the business, they would have to move as he
doesn't feel that anything more than what they propose will fit the building. He feels
the proposed business will have the least impact on Southside Drive and if you talk
to the other businesses on Southside Drive it will be better than J ES was as J ES
took up the whole street and parked wherever illegally--blocked driveways, etc.
Member C onner asked how Mr. Dyer's other properties were configured around the
proposed business.
Mr. Dyer stated that his other properties surround the proposed business--Blue
Ridge C ontracting is right beside it, IC EE building is the back corner lot to the back
of the lot, his office is in between that and the gas station, and then he is also two
down. Deli-Matic is there as well and he has spoken with them and they are fine
with the business (they are located two-doors down). Sheldon Henderson owns the
building three-doors down and he is ok with the business. T hen Bill J ones' car lot
and his new warehouse so there is a good buffer around the proposed business. He
has also spoken with Trimble across the street and they are okay with the business
as well. T here is also a machine shop across the street as well.
Member Garst again noted the concern regarding noise associated with the business.
Mr. Dyer stated that the business is in an industrial area and is a good two-tenths of
a mile from any residential property and he could go in and install two 5-ton A/C
units on the building without any special permission as it currently stands.
It was noted that no comments have been received by the Zoning Division regarding
the request.
Vice C hair King stated that it concerns her that no one from the business is present
at the meeting.
A discussion was held regarding the electrical upgrade needed for the business,
issues with getting supplies/equipment needed for upgrade, etc. Mr. Van Allman
noted that a permit to install two 5-ton units on the property would be issued without
question.
Mr. Dyer further stated that they have done their due-diligence and the Electric
Department has agreed that there is enough power to serve the facility and won't
blackout any neighborhood or anyone beside it. T he Electric Department has been
out two different times as he is going to also need three-phase for a trucking
company going in down the street from the facility.
Mr. Dyer stated that he is building a 255,000 square-foot server farm for Microsoft
in Leesburg, Virginia, and when you talk about noise, that facility is going to
generate noise because they are setting 15 pads. T he building is 750-feet long and
they are placing a 40-ton unit every 20 feet down the side of the building. T here are
nine going in Boykins, Virginia, and six going in Leesburg. T hose facilities cause
blackouts. T he proposed facility is equivalent to using a laptop compared to the
Microsoft facilities, which are placed beside a transformer. Dominion Power is
putting in three different sub-stations to hit that and a server farm. T he machine
shops on Southside Drive can pull just as much energy as the proposed facility.
Member Garst questioned if Mr. Dyer knew where the current facility is located.
Mr. Dyer stated that he does not know.
Member Beamer stated that he draws comfort from Mr. Dyer's knowledge, his
vested interest, and the fact that his business is located next to the proposed facility.
A further discussion was held regarding noise, electrical needs, industrial areas,
location, etc.
No other person(s) appeared related to the request.
Member C onner proposed a motion to approve the request. Member Garst
proposed an amendment to the motion that the switch-gear is limited to the proposed
1,000-amp, 480-volt. Member C onner did not feel that the limit on the switch-gear
is necessary. Member Beamer seconded the motion. Vice C hair seconded the
amended motion.
Another discussion was held regarding noise, electricity, etc.
Member Garst withdrew his amended motion.
Mr. Dyer further explained how the proposed business could not be expanded on the
property.
A discussion was held regarding placing conditions on the request.
A vote was held to approve the request as presented: Member C onner - aye,
Member Beamer - aye, Member Garst - nay, Vice C hair King - nay, Chair Daulton -
nay. Motion denied.
Vice C hair King motioned that the request be approved with the following
conditions: the C ity of Salem Electric Department approve the use of electricity,
and the tenant comply with the noise ordinance.
Denise King motioned Consider request of Sia Asset Management, LLC, applicant,
and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For
Permit to allow crypto mining at 1401 Southside Drive (Tax Map #165-4-2.1)..
Reid Garst seconded the motion.
Ayes: Beamer, Conner, Daulton, Garst, King
5.Adjournment
Meeting adjourned at 7:54 p.m. Neil C onner motioned adjournment. J ackson
Beamer seconded the motion.
C ity C ouncil meeting, January 10, 2021, 6:30 p.m.
C o mmunity R oom, S alem C ivic C enter, 1001 R oano ke Boulevard