KSHB 41 reporter Tod Palmer covers sports business and eastern Jackson County, including Independence. Share your story idea with Tod.
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A Jackson County judge effectively gave the green light Wednesday to a Dutch company’s 2.1-million-square-foot hyperscale AI data factory in Independence’s Little Blue Valley.
Jackson County Circuit Court Judge Jennifer Phillips denied the request for declaratory judgment and quashed a previous order granting temporary injunctive relief.
READ | Judge Phillips' decision
Essentially, Phillips shot down the lawsuit, which sought to put tax incentives for a massive data center to a public vote, brought by three Independence women against the city.
Rachel Gonzalez, Kharma Magers and Misty Vaughn sued Independence after City Clerk Susanne Holland, who was also named in the lawsuit, refused to certify a petition to put the ordinance to a public vote.
They hoped to put the proposal before Independence voters in August.
The Independence City Council voted 5-2 on March 2 to approve Chapter 100 industrial revenue bonds, which will finance the construction of Nebius’ sprawling data center along Missouri 78 east of Little Blue Parkway in eastern Independence.
Phillips heard arguments in the case Monday and promised a decision by the end of the week. She wrote in Wednesday’s decision that the ordinance “went into effect immediately and is not subject to a referendum by the plain language of the City Charter.”
The trio of residents argued that the City Charter provided a 10-day window for citizens to gather signatures and put any ordinance to a vote, but the city countered that the ordinance wasn’t subject to referendum because it dealt with a specific contract and the issuance of bonds — two exceptions to the charter’s referendum clause.
Phillips sided with the city.
"The City appreciates the Court’s thoughtful review and ruling in this matter," the city shared in a statement after the ruling. "This decision reinforces the balance built into our City Charter, allowing the City to carry out specific projects while still protecting residents’ ability to challenge certain types of ordinances. With this ruling, the City will move forward with its commitments and remain focused on the long-term success of our community."
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Nebius applied for tax incentives for the project in November and bought the land from NorthPoint Development in December, touching off months of intense debate at City Council meetings and study sessions.
City leaders said they vetted the company and the project thoroughly and expressed confidence that the PILOT, or Payment in Lieu of Taxes, fees it will generate would be transformative for Independence’s General Fund and Independence Power & Light operations.
Opponents voiced concerns about the scale of the project, potential impacts on air and water quality, disruption of wildlife in the area, traffic, AI’s social impacts, and impact on the nearby trails, among other issues.
A third-party, Independence Power Partners, will build a new natural gas power plant on the site of the retired Blue Valley Power Plant adjacent to the site to power the Nebius project.
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