What Park Falls' New Data Center Rules Actually Do, and What Else City Hall Is Deciding This Fall

Park Falls now has a zoning district for data centers, and the district covers no land. The Common Council adopted two ordinances on July 13, 2026. They were published July 23 and took effect July 24. No Manufacturing Data Center district has been placed anywhere on the city's zoning map. Before a district could be created, the city would first have to amend the land use map in its Comprehensive Plan. Then it would have to amend the zoning district map. Each step is a public process.

The Comprehensive Plan, its land use map included, is being rewritten right now for the first time in more than 15 years. The July vote was mostly a holding action. The larger decision about where industry, housing, and parks can go in Park Falls is being drafted in Plan Commission work sessions this fall, and the former paper mill property is in the middle of it.

The gap the ordinance closed

In late April 2026, Kluver, the City/Zoning Administrator, told the Mayor and Council that existing zoning offered no protection. The city's industrial district allowed nearly any use except residential, educational, or institutional ones, and data centers were among the permitted uses. Mayor Tara Tervort put it plainly to the Price County Review: "We knew that if a data center did come into our city, they could have just built and there was nothing the city could have done to stop them."

The council began discussing the issue on May 11, at the request of two council members, and directed staff to draft ordinances instead of a moratorium. The Plan Commission reviewed drafts on June 4 and June 18. At the July 13 public hearing, one person asked for draft copies, one spoke, and one written comment came in. Every council member present voted to adopt. The bigger public reaction came afterward. Tervort said hearing turnout was disappointing, but once early coverage made the ordinance look friendly to data centers, many residents raised concerns that the city was trying to attract them. The city says no one has contacted it about building a data center in Park Falls.

Here is what the two ordinances do, based on Kluver's August 4 letter to residents and the Review's follow-up:

Kluver explained why the rules had to come before any applicant:

"If it is not in the code at the time of the application, you cannot address it. Zoning is not about a mob decision of who you like and who you don't; it's about the creation of rules that are applied fairly to all applicants."

Why regulate instead of ban

Kluver acknowledged in his letter that many residents want an outright ban. City Attorney Bryce Schoenborn advised against one. Kluver wrote that a ban would put the city on "legally shaky ground," that this is an untested area of case law, and that the Wisconsin Legislature has a recent history of passing laws that override municipal bans. According to Kluver, the Comprehensive Plan survey showed the community opposes data centers. The city chose enforceable standards over a ban that a court or the Legislature could overturn.

Nearby governments are taking different approaches. Price County Fun reported that the Georgetown Town Board, chaired by Ginny Strobl, discussed preparing a resolution barring data centers at its July 21 meeting. Georgetown has opted out of county zoning. At the county level, July 23 minutes from the Land Use / UW-Extension Committee show outside counsel updating county ordinances to cover data centers. The committee said the county was not a data center "hot spot" and that battery-storage facilities seemed more likely. As of the committee's September 17 meeting, the county ordinance was still pending while the committee waited for more guidance from Wisconsin Counties Association legal counsel. At the state level, Assembly Bill 1099 and Senate Bill 1061 would have created a statewide data center moratorium. Both failed to pass on March 23, 2026.

The mill site sits in the middle of the plan

Data centers and the mill property have already crossed paths once in Park Falls. A crypto-mining operation ran at the former mill site and has been shut down for over a year. It is now classified as a non-conforming use, so it cannot restart unless it meets the new rules.

The mill property also opened the most recent Comprehensive Plan work session. On September 22, Morgan Shapiro of MSA Professional Services walked the Plan Commission through existing conditions on the former paper mill properties. The commission then reviewed draft chapters on housing, economic development, transportation and mobility, and intergovernmental cooperation. According to the minutes, the Future Land Use map still needs updating, and the current version only handled existing zoning so the planning process could start. Shapiro recommended reviewing the zoning code once the plan is finished. Kluver has said separately that he expects to propose more zoning changes after the plan is complete.

City finances tie into the mill site as well. At a September 16 Joint Review Board meeting, Kluver said Tax Increment District 6 will not generate any increment for the foreseeable future. He said the district would have an even harder time recovering if the city takes some of the former mill property for environmental clean-up. The board voted 4-0 to move a $500,000 park project allocation out of TID 6 and into TID 5.

Housing on Tower Road is tied to the same district math

TID 5 matters for another reason. Its debt payments rise in 2028, and the Joint Review Board noted that the city is pursuing a proposed housing development in TID 5 partly to help the district's cash flow. That project is the Commonwealth proposal on city-owned land on Tower Road. The Price County Review places the site on the north side, between State Highway 13 and Tower Road. Commonwealth's February presentation described 40 units with one-, two- and three-bedroom layouts and a clubhouse. The developer said it would not seek TIF financing.

The schedule depends on several conditions being met:

1. February 23, 2026: the council voted 7-0 to move forward with Commonwealth.
2. March 9, 2026: the council approved a planning-option agreement. This is not a final development agreement.
3. By December 31, 2026: the expected application date for WHEDA's 2027 housing tax credit round.
4. May 2027: the expected window for WHEDA's decision. If no reservation arrives by June 15, 2027, either party can end the agreement or try a later round.

On September 14, the council met in closed session about the project, and Sam Warshauer of Commonwealth attended part of the discussion. The council took no action. No public record so far confirms a WHEDA filing.

Smaller rules on the same desk

The Plan Commission is also starting on questions that affect individual lots. On September 10, members agreed to draft an ordinance on structure size in zoning districts. They also held a first conceptual discussion of accessory dwelling units, raised by commissioner Dixie Weidman. Examples of ADU ordinances from other communities will come to a future meeting. On September 14, the council passed three zoning ordinances: 26-017 on mobile and manufactured home definitions, 26-018 on site regulations, and 26-019 on the C-1-A Commercial District. Nobody spoke at the public hearing. The low turnout at the data center hearing is a recent example of what that can lead to.

Parks are part of the same plan. On September 15, the Parks, Recreation & Historical Landmarks Committee voted 5-0 to keep exploring Beau Stahnke's proposal for a disc golf course on about 20 acres of city property south of the airport. A land review, maintenance agreement, restroom plans, and fundraising still need to be worked out. The committee is also listing facilities for new wayfinding signs, and Alderman Terry Wilson offered to draft a map of the city's recreational facilities.

Dates on the fall calendar

The 2026 revaluation is being handled by assessor Kit Koski of Bowmar Appraisals. Plan Commission meetings are held at City Hall, 410 Division Street. Kluver takes questions about the data center ordinances at 715-762-2436 or [email protected].

If you own land near the mill properties, an industrial parcel, or a lot where an ADU rule could change your options, future land use decisions will affect what that property can be used for. At United Country Real Estate | Northern Wisconsin Lifestyle Properties, we look at zoning, access, and neighboring land uses along with comparable sales, and we can help you figure out what the draft plan could mean for your parcel. Schedule a Consultation.