BOONE, Iowa—Following a period of detailed review, the Executive Board of Directors of Boone County Economic Growth Corporation (BCEGC) has signed a Letter of Intent with Lightedge Solutions LLC (Lightedge) to purchase 10 acres of land in the Boone Business Park for a colocation facility — a secure building that houses computer servers and networking equipment that banks, hospitals, law enforcement, and local businesses rely on to safely store and process their data. Lightedge has operated secure colocation facilities in Iowa for more than 25 years.
As part of its review, the BCEGC Executive Board has taken several steps to better understand potential impacts and benefits of the project, including:
- Water usage: Lightedge utilizes a closed-loop water cooled system in their facilities — meaning the same water is continuously recirculated to cool the equipment, thereby eliminating the need for daily water usage for cooling. BCEGC analyzed three years of water usage from Lightedge’s Altoona facility, which has been in operation for decades. Water use there comes from ordinary needs like restrooms and break areas, plus lawn irrigation. BCEGC also consulted with the representatives from the City of Boone’s Economic Development and Utilities Committees to further analyze the water bills and determined the use to be in line with usage similar to other businesses in our community.
- Electric infrastructure: As the electric utility provider for the intended site, Alliant Energy indicates the project could provide energy grid enhancements and increased reliability for all customers. Large energy-use customers, like Lightedge, pay for the infrastructure upgrades needed to serve them, not existing customers. When infrastructure costs are paid for by the large energy use customer, those costs are not passed on to others. This can help keep long-term energy rates stable. In Iowa, Alliant Energy is currently in a rate freeze through the end of the decade, in part due to the increased energy demand and growth of large energy users.
- Facility operations: Representatives from BCEGC toured Lightedge’s Altoona operations, saw the equipment in use, and spoke with employees and clients as part of its due diligence. Lightedge’s customers appreciate the US-based business and have confidence that their information stays in the US. Much of the large mechanical equipment observed was made in the Midwest. Due to confidentiality and security concerns, many Iowa customers do not want to reveal the location of their information technology solution. Lightedge has a large customer base of diverse clients that do business within the state, both for convenience and to meet regulatory requirements.
- Noise: Based on its review of the company’s existing operations, BCEGC found that noise levels are consistent with building cooling equipment used in courthouses, schools, and office complexes, and are well within established guidelines. Noise modeling will be conducted as part of the design of the new facility to ensure compliance with all regulations.
“We believe this represents an outstanding economic development opportunity for Boone,” said Brenda Dreyer, Executive Director of the Boone County Economic Growth Corporation. “The project would be located on land that was developed for industrial purposes more than 20 years ago, would make use of existing infrastructure, and would provide new employment and tax-base opportunities for the community. BCEGC and Lightedge are committed to answering residents’ questions directly and openly throughout the process.”
The project would provide a significant addition to Boone’s property-tax base at a time when communities are increasingly focused on growth and diversification. New property tax revenue would benefit the City of Boone, Boone Community School District, Boone County Hospital, Boone County, and Des Moines Area Community College. In addition, the project is expected to create hundreds of construction jobs during development, along with a number of high-quality, permanent positions to operate the facility. Lightedge also has a long history of hiring US veterans across its organization.
Lightedge will not seek any tax incentives from the City of Boone. The company will also work with the city to establish a minimum building value assessment, providing local taxing entities with greater certainty for budget planning both now and in the future.
“Economic development decisions are best made using factual information and a clear understanding of a proposed project,” said Chad Houston, President of Kruck Plumbing and Heating and BCEGC investor. “We encourage residents to learn more about the project and the facts surrounding it as the site-selection process continues.”
BCEGC plans to hold an open house for Boone residents to learn more about the project once a final site plan has been submitted to the City of Boone. Additional details about the open house will be announced at a later date.
Several sites across Central Iowa remain under consideration, and BCEGC expects to know more about the status of a potential Boone site in the coming weeks.
Brenda Dreyer, Executive Director of the Boone County Economic Growth Corporation, is scheduled to be a guest on the KWBG Tuned In Program, Friday morning on KWBG FM 101.5, KWBG AM 1590 or www.kwbglive.com.
(contributed press release)
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