Festus Council Looks Toward Resident Benefits as Data Center Debate Continues

Another contentious Festus City Council meeting brought sharp criticism of the proposed data center, the first significant test of the city’s new rules of decorum, and a reported arrest outside City Hall.

Inside the meeting, however, council members also began looking more closely at what residents could receive if the controversial development moves forward, including possible reductions in city property taxes and water rates.

Councilman Mike Cook said the city is now operating under an executed agreement and believes the focus should increasingly turn toward making the project as beneficial to Festus residents as possible.

That approach appears to have support from several council members who have not necessarily been strong proponents of the project itself.

Cook said those members have gathered information about the agreement and are now asking what can be done to maximize benefits for residents.

“They have now moved toward, let’s make this the best thing for the citizens as possible,” Cook said, adding that council members are working together on additional ideas.

New Rules Tested During Meeting

The meeting opened with city officials explaining that Police Chief Wendel, serving as sergeant at arms, would be responsible for enforcing the council’s rules of decorum.

Attendees were told disruptive conduct would result in a warning, followed by removal if it continued.

The distinction is important because the decision to remove someone is now placed with law enforcement rather than elected officials.

Cook said residents remain free to strongly criticize council members during public comment, but once the meeting moves into official city business, continued interruptions can result in warnings and removal.

The rules were put into practice Monday.

Near the end of the public portion of the meeting, an attendee responded when Mayor Sam Richards asked whether there were any bids. Richards clarified that he was referring to formal business bids rather than additional public comments. The transcript then records further comments from the audience as officials attempted to move into ordinances and resolutions.

Cook said a woman who continued commenting was warned and ultimately directed to leave, although she left voluntarily and was not physically escorted from the room.

He said he was willing to give her the benefit of the doubt because she may initially have misunderstood the mayor’s question about bids as an invitation for public participation.

A separate incident later resulted in an arrest outside City Hall.

Cook said those directed to leave the meeting initially complied and left without significant escalation. He said he did not know what occurred afterward that ultimately resulted in the arrest and emphasized that once the matter became a police issue outside the council chambers, council members had no authority to interfere.

Cook Pushes Property Tax and Water Rate Reductions

Later in the meeting, Cook asked city staff to prepare a model showing what Festus finances would look like if the city reduced residential property taxes by anywhere from 50 percent to 100 percent.

Cook said he had discussed the concept with Councilmen Moore, Weekly, and McCarthy.

“I’d like to use that money to reduce our property taxes,” Cook said during the meeting.

He also asked the city to examine whether increased revenue from the development could allow Festus to reduce water rates.

Cook said afterward that the goal is to create a benefit residents can directly see.

He estimated that eliminating the city portion of property taxes on an approximately $200,000 home could save around $250 per year. Personal property tax reductions could potentially produce additional savings depending on vehicles and other taxable property.

Those figures are preliminary estimates, and city finance staff would still have to determine what reductions are financially sustainable.

Cook said residential property would come first because he does not want the city to become overly aggressive and create a financial problem of its own. Commercial reductions could potentially be considered later.

Water rates are another possibility.

Cook said community improvement money associated with the development could potentially be used for community needs, while the addition of a major water customer could also change the economics of operating the city’s water system.

“We can actually start reducing water rates, and that’s the whole goal,” Cook said.

Councilman Weekly followed Cook’s comments by suggesting the city explore a grant or assistance program for elderly residents living alone who may struggle with maintenance such as mowing, gutter cleaning, or other work around their homes.

Cook also credited Jefferson County Councilman Tim Bennett with participating in conversations about community benefits.

According to Cook, Bennett has emphasized that because the project is so controversial, residents need to ultimately see benefits they can “touch, feel, and see.”

Cook said property tax relief is only one part of what is being discussed.

Cook Warns Against Simply Breaking Agreement

While opponents continue asking city officials to stop the project, Cook said intentionally walking away from the existing agreement could place Festus in severe financial danger.

Cook said the city’s insurance company has advised that breach of contract is not covered by the city’s insurance.

Any resulting damages, he said, could therefore fall directly on the city.

Cook also said his understanding is that damages from an intentional breach would not necessarily have the liability cap some residents have suggested.

If damages were large enough, Cook said the consequences could reach police, fire, public works, infrastructure, and the city’s ability to borrow money.

General revenue could be redirected toward paying damages, while damage to the city’s credit could make municipal bonds more expensive and jeopardize future public works projects.

Cook also warned that financial problems could extend into the water system because of municipal bonds connected to its expansion.

His position is that residents who believe the agreement was improperly approved have the courts available to challenge it. In the meantime, he believes the city must operate under the agreement currently in place rather than intentionally exposing taxpayers to a breach claim.

Annexation Moves Forward After Attempt to Delay Vote

The council also considered Bill 4894, involving the voluntary annexation of three properties along U.S. Highway 67 adjacent to the data center site.

Councilman Belleville asked that the measure be tabled until the next meeting, saying he wanted an opportunity to examine original Planning and Zoning documents amid questions being raised about whether Festus needs to tighten its annexation and rezoning procedures.

Councilman Moore joined Belleville in supporting the delay, but the motion failed 2 to 5.

The annexation ultimately passed by the same 5 to 2 margin, with Belleville and Moore voting no.

Belleville later said he also wants residents to send him examples of financial or community benefits they have been told the data center will produce.

He said he intends to work with the city administrator and attorney to determine which expectations are supported by written agreements and which may have originated from conversations or public statements.

His goal, he said, is to “narrow down that conversation to facts.”

Other City Business

The council unanimously approved Bill 4893, amending the city’s 2025-2026 budget by a net $607,454 to account for grant revenue, previously approved expenditures, projects carried forward from previous years, and projects being moved into the next fiscal year.

Council members also approved temporary liquor licenses for Taytro’s connected to Twin City Days and the Ozark Food Pantry Car Show at Crites Park.

A downtown business was also approved to hold a grand-opening event on October 10 in conjunction with the Festus Farmers Market and Street Fest activities. City officials discussed coordinating the limited street closure with other events occurring downtown that morning.

The council additionally approved temporary liquor licensing for Tanglefoot Dance Hall for upcoming downtown events.

During council reports, updates were given on park projects, street cleaning, the city’s light show, and work still planned for a park parking lot.

Cook also asked the council to consider moving forward with an e-bike ordinance at a future meeting or work session.

Councilman Moore praised activity on Main Street and asked for an update on planned improvements. City Administrator Ben DeClue said Festus has received $1.5 million in federal funding for the street project and is conducting a parking survey before settling on a final design.

The council later moved into closed session for legal matters, contract negotiations, and personnel matters. Budget work sessions were also discussed for the coming weeks.

For all of the continuing disagreement surrounding the data center, Monday’s meeting showed that the council’s work is beginning to shift toward two questions that may define the months ahead: what obligations Festus already has under the agreement, and what residents will receive if the project ultimately moves forward.

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