This week in county government; AWS plans to invest $11 billion in Louisa County for data centers; Supervisors set for busy meeting; Hamilton Road bridge reopens
This week in county government; AWS plans to invest $11 billion in Louisa County for data centers; Supervisors set for busy meeting; Hamilton Road bridge reopens
Engage Louisa is a nonpartisan newsletter that keeps folks informed about Louisa County government. We believe our community is stronger and our government serves us better when we increase transparency, accessibility, and engagement.
This week in county government: public meetings, September 4 through September 9
For the latest information on county meetings including public meetings of boards, commissions, authorities, work groups, and internal county committees, click here. (Note: Louisa County occasionally schedules internal committee/work group meetings after publication time. Check the county’s website for the most updated information).
Tuesday, September 5
Louisa County Board of Supervisors, special meeting, Public Meeting Room, Louisa County Office Building, 1 Woolfolk Ave., Louisa, 4 pm. (public notice)
The board will hold a special meeting to “go over the meeting and agenda management process and board portal for electronic voting,” according to the public notice.
Louisa County Board of Supervisors, Public Meeting Room, Louisa County Office Building, 1 Woolfolk Ave., Louisa, 6 pm. (meeting materials, livestream) The board will convene in closed session at 5 pm.
Louisa County School Board, Central Office Administration Building, 953 Davis Highway, Mineral, 7 pm. (agenda, livestream)
Other meetings
Thursday, September 7
Thomas Jefferson Planning District Commission, Water Street Center, 407 E. Water Street, Charlottesville, 7 pm. (meeting materials) A link to watch/participate virtually is available in the meeting materials.
Additional information about Louisa County’s upcoming public meetings is available here.
Interested in taking your talents to one of the county’s numerous boards and commissions? Find out more here including which boards have vacancies and how to apply.
Amazon Web Services plans to invest $11 billion in Louisa County for data centers
Amazon Web Services plans to invest $11 billion in Louisa County by 2040 to establish two data center campuses, the county announced in a press release Wednesday afternoon.
The project is part of a planned $35 billion investment by AWS to build data centers across Virginia, a deal that Governor Glenn Youngkin announced in January.
According to the county’s release, the campuses will be in the newly created Technology Overlay District, a special zoning designation approved by the Board of Supervisors earlier this year to attract lucrative hi-tech industry. The district covers some 6,000 acres, strategically located near high-voltage transmission lines and other infrastructure necessary for tech sector development, in parts of central, southern and eastern Louisa County.
County Administrator Christian Goodwin said in an email last week that one of the campuses will be built near the North Anna Nuclear Power Station, which sits on Lake Anna at the county’s northern edge, while the other is slated for property near the Northeast Creek Reservoir off Route 33 in central Louisa.
The data centers will house computer servers and networking equipment that support remote work, streaming and other online activities, according to the release. They’re expected to provide hundreds of jobs, making AWS one of the county’s largest private-sector employers, and contribute significant tax revenue that could support schools, essential services, and investments in parks and roads.
Local officials hailed the partnership with AWS as a watershed event for the county, touting it as an historic opportunity for large-scale economic development that would bulk up the tax base and create jobs while generating “less traffic and related community impacts” than other types of development.
“This type of opportunity to create hundreds of high-quality jobs and significant investment in Louisa is why responsible economic growth is a priority for the county. We’re proud to partner with AWS to expand their operations in a world with a growing demand for cloud computing infrastructure,” said Louisa County Board of Supervisors Chair Duane Adams.
“Any chance to provide better job opportunities for our citizens right here in the county is a valuable one. Coupled with the revenue support for community enhancements and essential services, this project is a great opportunity for Louisa,” Patrick Henry District Supervisor Fitzgerald Barnes said.
AWS also expressed excitement about coming to Louisa and expanding its investment in Virginia.
“We are proud to reinforce our long-term commitment to the Commonwealth with our plans to invest $11 billion in Louisa County by 2040,” said Roger Wehner, Director of Economic Development for AWS. “Virginia hosted our first data centers when we launched in 2006, and over the last decade AWS invested more than $51.9 billion in the Commonwealth while supporting thousands of jobs. This new investment in Louisa County builds on our rich partnership with the state and we look forward to delivering and supporting programs that will benefit Louisa County residents.”
According to Goodwin, the county could receive at least $25 million in annual tax revenue from the campuses at full build out, which is expected to take 15 years. That revenue equals nearly 17 percent of the county’s $148 million operating budget for Fiscal Year 2024 and more than doubles the taxes paid by Dominion Energy for the North Anna Power Station last year.
But the $25 million windfall could be reduced because of tax breaks and performance incentives that the county is expected to offer AWS. Supervisors will consider approval of an initial performance agreement with the company at its September 5 meeting, which wasn’t publicly available at publication time. The agreement is expected to lay out at least some of the tax discounts and other financial incentives the county plans to provide while also setting benchmarks for the company related to capital investment, job creation and revenue generation.
Louisa County Community Engagement Manager Cindy King said in an email on Friday that the county is considering offering Amazon a reduction in the business personal property tax rate (BPP), which sits at $1.90 per $100 of assessed value. Virginia law allows localities to provide tax breaks on qualifying data center equipment via a lower BPP rate and accelerated depreciation schedule.
The county is also expected to offer a range of other perks. Goodwin said that any local incentives provided to AWS would be a proportion of new revenue generated by the centers and subject to performance agreements approved by the board.
In addition, the company is expected to benefit from state incentives green-lighted by the General Assembly in February. Those incentives essentially exempt AWS from paying the state’s sales and use tax on data center equipment through at least 2040, provided the company invests $35 billion in data centers in the commonwealth and creates 1,000 jobs. The legislation also makes available some $140 million in state grant funding for infrastructure investment, workforce development and other project-related costs. That funding would require a 2 for 1 local match and is contingent on the company meeting certain investment and job creation goals.
Amazon’s plan to expand into Louisa comes amid a burgeoning demand for cloud computing services and the emergence of artificial intelligence technology that requires vast data crunching capacity. It also comes as data center developers encounter significant hurdles in their effort to expand in parts of Northern Virginia, the global epicenter of the industry.
Dubbed the “data center capital of the world,” the region is home to hundreds of the warehouse-like facilities, mostly in Loudoun, Prince William and Fairfax counties. About one-third of the world’s internet traffic travels through the area and the centers, owned by tech behemoths like Google, Meta and AWS, contribute roughly a billion dollars in local tax revenue annually. But the power-hungry facilities are straining the region's power grid and upsetting some neighbors, who complain that their proliferation is creating noise pollution, marring viewsheds, impacting property values and threatening rural areas and historic resources.
Data center developers have looked south to find friendlier terrain including cheaper, more plentiful land and robust utility infrastructure. Local officials seized on the opportunity to attract the developers earlier this year when they created and adopted the Technology Overlay District, which permits data centers and other tech sector development by-right—meaning the uses don’t require a public approval process—and lays out development standards designed to mitigate their impact and meet industry needs.
While supervisors approved the TOD in April in a 6-1 vote, the district has met resistance from residents who live near properties selected for inclusion. Some neighbors have echoed concerns raised in Northern Virginia including that data centers would detract from the county’s rural character, generate noise pollution from the large fans and other equipment required to cool the servers inside and overwhelm local infrastructure.
County officials have argued that the TOD includes tight development standards to protect neighbors including mandating wide perimeter buffers and a cap on daytime and nighttime noise that only slightly differs from what’s currently permitted on agriculturally-zoned property.
In Wednesday’s release, officials reiterated that the TOD is designed to protect the community by targeting and controlling tech sector development.
“Bringing a leader like AWS to a rurally focused locality requires a careful consideration of industry needs and the community atmosphere that our citizens expect,” Jackson District Supervisor Toni Williams said. “Louisa’s TOD represents the strictest development controls in the county, and we’re pleased to find a partner that offers such significant benefits while meeting those standards.”
Supervisors set for busy Tuesday night meeting
With county offices closed on Monday for Labor Day, the Louisa County Board of Supervisors will convene for a busy meeting Tuesday night. The board will hold one public hearing and consider six action items. The agenda also includes two discussion items and a presentation from the Louisa County Historical Society.
Board to review latest cost estimate for James River waterline: For about a decade, Louisa and Fluvanna counties, via the James River Water Authority, have planned to build infrastructure to channel raw water from the river to meet both localities long-term needs.
The cost to make that plan a reality is now expected to reach over $45.6 million, nearly $8 million more than an estimate floated by JRWA's consultants just a year ago and about $20 million more than a projection presented to JRWA’s board of directors in 2020.
The rising cost means both counties will have to chip in more money to finish the project. County officials had included about $18 million in the FY24 Capital Improvement Plan to cover Louisa’s half of the bill. But the board pushed back that funding prior to approving the budget. The county is expected to pay for the infrastructure by issuing debt and the estimate doesn’t account for interest or financing costs.
The board will review the latest cost breakdown Tuesday night and decide whether to okay the additional funding. In addition, they’ll consider passing a resolution recommending that JRWA adopt an addendum to the original project contract.
JRWA plans to build a water pump station and intake on the banks of the James and a roughly four-mile stretch of pipeline to connect it to an existing water main just north of Route 6 in southern Fluvanna. The county intends to use the water that JRWA pulls from the river to feed development along the Interstate 64 corridor including at Zion Crossroads and the Shannon Hill Regional Business Park.
For Louisa, the water is direly needed to fulfill its plans for economic development along the interstate. For years, Zion’s growth area has relied on ultra-deep county-owned wells, several of which are located in the Green Springs National Historic Landmark District, an agricultural area dotted with 18th and 19th century homes. Some Green Springs residents have argued that the county’s wells can’t support any more development and threaten their water supply. Meanwhile, the Shannon Hill site has no water source nearby.
JRWA initially planned to build the pump station at the confluence of the James and Rivanna rivers, a site believed to be Rassawek, the ancestral capital of the Monacan Indian Nation. But the federally recognized tribe strongly opposed the location, stymying the federal permitting process. Facing increasing pressure from the Monacan, JRWA in March 2022 opted to move the station to a new site about two miles upstream and reroute the pipeline to connect to it.
Changes to the scope of the project combined with inflation contributed to the cost increase, according to county officials. A cost breakdown included in the meeting materials shows that the authority now expects to pay about $39.6 million for the infrastructure’s construction including about $11 million for the pump station, nearly $10 million for the 24-inch waterline and $3.85 million for design and engineering. The authority expects to spend another $5.92 million to obtain the required permits—including a permit from the Army Corps of Engineers—as well as for easements and land acquisition and other expenses. About $3 million will pay for a Phase III Cultural Resources Study and related fieldwork, part of the Corps’ permitting process.
The JRWA project is only one piece of Louisa’s larger effort to channel water from the river to support development along 64. The county has already spent more than $40 million building a 13-mile waterline from Route 6 across Fluvanna County, a water treatment plant at Ferncliff and related infrastructure. Those facilities are owned by Louisa County and will be operated by the Louisa County Water Authority while the pump station and pipeline below Route 6 will be owned and operated by JRWA.
Board to consider approval of initial performance agreement with Amazon Data Services: Supervisors announced last week that Amazon Web Services plans to invest $11 billion in Louisa County by 2040 to build two data center campuses in the newly created Technology Overlay District, a special zoning designation approved by the board earlier this year that’s aimed at attracting lucrative tech sector development. One of the campuses—dubbed the Lake Anna Technology Campus—will be located near the North Anna Nuclear Power Station in northern Louisa. The other—called the North Creek Technology Campus—is slated for property near the Northeast Creek Reservoir in the center of the county. (See article above).
County Administrator Christian Goodwin told Engage Louisa last week that, at full buildout, the campuses could generate at least $25 million in local tax revenue annually, but that figure doesn’t account for tax breaks that the county could offer. It’s expected to take 15 years to build the campuses and bring them online.
Supervisors will consider approval of an initial performance agreement with Amazon Data Services, an affiliate of AWS, Tuesday night that’s expected to provide some insight into the carrots the county is using to lure the tech giant and what AWS is expected to bring to the table.
At publication time, the agreement was not publicly available. But Community Engagement Manager Cindy King said Friday morning that the document would be available to the public at Tuesday’s meeting, noting that its consideration is only the first step toward approving incentives.
“It should be noted that the first iteration that will be considered (at the meeting) will require a future (public) amendment to finalize incentives. The intent with (Tuesday’s) consideration is to move forward quickly and to be transparent as early as possible,” King said.
The meeting materials include an overview of tax breaks and incentives that are expected to be included in the initial and future agreements. They include:
A data center-specific reduction in the county’s business personal property tax rate (BPP). State law allows localities to provide tax breaks on qualifying data center equipment via a lower BPP rate and accelerated depreciation schedule. The county could lower the rate from $1.90 per $100 of assessed value to $1.25 for qualifying equipment.
A performance-based tax grant, for years 1 through 20, to support company investment in infrastructure necessary to develop data centers in more rural areas.
Performance-based tax grants, in years 21-25, to incentivize the company to invest additional capital in Louisa County beyond $11 billion.
The county could also aid AWS in providing utility infrastructure, including access to nonpotable water, and work with the state to smooth the permitting process.
In addition, AWS is expected to benefit from state incentives approved by the General Assembly in February. Those incentives essentially exempt the company from paying the state’s sales and use tax on data center equipment through at least 2040, provided the company invests $35 billion in data centers in the commonwealth and creates 1,000 jobs.
The legislation also makes available some $140 million in state grant funding for infrastructure investment, workforce development and other project-related costs. The funding would require a 2 for 1 local match and is contingent on the company meeting certain investment and job creation goals.
Supes to consider commercial rezoning near Zion Crossroads: Supervisors will hold a public hearing and consider whether to approve Three Notch Road, LLC’s request to rezone, from Industrial Limited (I-1 GAOD) to General Commercial (C-2 GAOD), 3.03 acres (tmp 52-2-2) near the intersection of Three Notch Road (Route 250) and Bybee Road (Route 607) to allow a recreational vehicle sales and service business.
The parcel is currently home to Peebles Golf Cars, a business that sells, stores and repairs golf carts. But, according to Steve Houchens, a representative of Three Notch Road, LLC, the property’s owner, Peebles wants to sell a new classification of golf cart that’s considered a “low speed vehicle.” To accommodate those sales, the property requires a rezoning to general commercial because the use isn’t permitted in industrial zoning.
“This new classification of vehicle is built and operates like a car, but it looks and has the same speed limit and probably more capability than a golf cart. But it operates like an automobile, so it’s classified as an automobile. Basically, we are seeking this (rezoning) to be able to allow (our tenant) to sell a new product line. The site will not get used any differently than it is. It won’t look any different than it does,” Houchens told the Planning Commission at its August meeting.
In proffers attached to the rezoning request, Houchens initially offered to exclude six future uses for the property that are permitted by-right under C-2 zoning, but several planners expressed concerns about the litany of other uses that the rezoning would permit.
Cuckoo District Commissioner George Goodwin said that he wasn’t comfortable green-lighting the request if it would allow the applicant to put everything from a dance hall to an indoor shooter range on the property should the current tenant leave.
Houchens said that his company asked for the rezoning to accommodate its tenant and it has no plans to change the property’s use. In proffers amended during the meeting, he agreed to exclude some 80 uses, retaining the right to use the parcel for uses related to vehicles sales and service and for most uses allowed in both commercial and the property’s current industrial zoning including a brewery and winery.
The commission ultimately voted 7-0 to recommend to the Board of Supervisors approval of the rezoning request.
Board set to move forward with water infrastructure project at SHRBP: The board will consider green-lighting construction of a water tower at the Shannon Hill Regional Business Park. Supervisors allotted $4.9 million for the structure in the FY24 Capital Improvement Plan, part of a $27.55 million appropriation to pay for wet utility infrastructure at the park.
According to the meeting materials, the tower is now expected to cost $5.68 million, bringing the total price tag for the utility project to just over $28.3 million. The county will pay for the infrastructure using a combination of state grant funding, debt issuance and revenue from the Louisa County Industrial Development Authority.
Specifically, the IDA will cover $4.9 million of the tower’s cost, drawing on proceeds from land sales and revenue it’s expected to receive from a utility-scale solar project slated for the authority-owned Cooke Industrial Rail Park. The county will pay for the tower up front with the IDA delivering annual reimbursements as it receives revenue.
In a separate but related action, supervisors will consider approving and awarding a contract to Landmark Structures for construction of the elevated water storage tank. The company was the lowest of four bidders who vied for the contract.
The board green-lighted development of the Shannon Hill Business Park in 2019 in hopes of attracting distribution centers, advanced manufacturing and other large-scale economic development to bulk up the tax base and create jobs. The 700-acre site sits just off Interstate 64 in south-central Louisa County.
Board to consider resolution expressing concern with state funding related to services for children with special needs: Supervisors will consider approving a resolution formally expressing concern with “the implementation of budget language on statewide rate setting for private day special education funded through the Children’s Services Act.”
Essentially, the board is concerned that the state intends to cap the amount it will reimburse localities for the cost of private day services for students with special needs.
A recent memo from the state says it won’t reimburse localities for the costs of private day services in excess of a 2 percent increase from rates established for the 2022-2023 school year. But Louisa County uses 14 private day facilities, 11 of which are increasing their rates between 5 and 12 percent for the 2023-24 school year, meaning the county will have to shell out more local funds to pay for the services.
In the proposed resolution, the board asks the state to do its part to help localities cover these costs.
Board to consider update to county seal color scheme: Supervisors will consider updating the dominant color in the county seal. The seal features Princess Louisa donning a blue and white dress and holding white flowers flanked by a tobacco leaf and a Dogwood flower. It’s predominantly yellowish-gold and includes a map of the county with a green backdrop. The board is considering changing the dominant color to a deeper gold “to better match County color schemes, including the color schemes used on emergency equipment,” according to the proposed resolution.
Board to hear presentation from historical society, discuss Bracketts Farm tax exemption request and “legislative processes” ahead of 2024 GA session: Supervisors will hear a presentation from the Louisa County Historical Society, a non-profit organization that operates a local history museum, offers programming highlighting the county’s history and houses historical records and archives. The board appropriated $42,500 to the organization during the FY24 budget process, $35,000 more than in FY23.
Supervisors will also discuss an application for tax exemption from one the county’s most prominent historic resources, Bracketts Farm. The 500-acre working farm, owned by the Elizabeth A. Nolting Charitable Foundation, is situated in the Green Springs National Historic Landmark District and includes an 18th century home and numerous well-preserved outbuildings. The agenda packet doesn’t include any additional information about the item.
In a second discussion, the board will consider “Legislative Processes for Upcoming General Assembly Session.” Each fall, the board crafts a set of legislative priorities ahead of the state legislature’s annual session, which kicks off in January. The board then meets with the county’s representatives in Richmond to discuss those priorities.
Last year, the board advocated for increased funding to combat Harmful Algal Blooms at Lake Anna, pushed to end “unfunded mandates” passed on to localities from the state and encouraged the assembly to pass legislation in support of developing small modular nuclear reactors, among other priorities. Check out the board’s 2023 legislative priorities here.
Hamilton Road bridge reopens to some traffic
A historic bridge in western Louisa County, shuttered since spring, has reopened to some traffic.
The Hamilton Road bridge (Route 695), which has carried vehicles over the South Anna River in Green Springs since 1929, is back in service after a three-month hiatus. VDOT closed the steel truss bridge in late May after inspectors identified significant deterioration to one of the beams that support its timber deck.
State crews completed repairs to the beam early last week, according to VDOT Residency Administrator Scott Thornton, and the department reopened the bridge on August 31 with a three-ton weight limit down from its previous five-ton capacity. According to a VDOT press release, use of the bridge is limited to “passenger vehicles.” Trucks, farm equipment, school buses, commercial and emergency vehicles exceed the posted weight limit, per the release.
Thornton advised residents with larger vehicles to consult their owner’s manual to determine their weight, noting that some large pickup trucks, like the Ford F-350 Super Duty Crew Cab, weigh over three tons. He also said that VDOT is installing devices to monitor traffic crossing the bridge. Prior to closing, 58 vehicles used the bridge each day, according to the most recent traffic counts.
Since VDOT shuttered the bridge on May 24, members of the Louisa County Board of Supervisors and county staff pushed state officials to repair and reopen the structure, citing increased commute times for neighbors and public safety concerns.
But efforts to fix the bridge, which is situated on a gravel road that winds through farms in the Green Springs National Historic Landmark District, were slowed because of the area’s historic designation. VDOT initially sought a green-light from the Virginia Department of Historic Resources to repair the bridge in mid-June but didn’t receive the final go-ahead until August 28, according to Thornton.
Outside of the latest repairs, county officials have asked VDOT to undertake a larger project to upgrade the bridge so it can accommodate a full range of emergency vehicles. Even at its five-ton weight limit, some fire apparatuses couldn’t cross the bridge, raising concerns about emergency response times in the area.
Supervisors passed a resolution in March directing VDOT to work with stakeholders, including Green Springs residents and representatives of the National Park Service, to craft a rehabilitation or replacement plan.
Because of the area’s historic designation, any plans to significantly alter or remove the structure are subject to the National Historic Preservation Act’s Section 106 process, which allows the public to weigh in on federally assisted projects that could impact historic properties.
Thornton said last week that VDOT expects “to start having meetings later this fall to start the 106 process with the various stakeholders in the area.” He said in June that the department has acquired a third-party facilitator from UVa to help with the process.
VDOT walked away from a previous effort to upgrade the bridge about nine years ago after consulting parties, including the land preservation group Historic Green Springs, Inc., couldn’t agree on how to move forward.
Green Springs District Supervisor Rachel Jones, who represents the area, told Engage Louisa in May that she’s hopeful the renewed effort will yield a different result and that VDOT and historic district residents can agree on a plan that retains the bridge’s historical elements while ensuring that the structure meets residents’ needs.
Click here for contact information for the Louisa County Board of Supervisors.
Find agendas and minutes from previous Board of Supervisors and Planning Commission meetings as well as archived recordings here.
Click here for contact information for the Louisa County School Board.
Click here for minutes and agendas for School Board meetings.
Click here to access past editions of Engage Louisa.