Mitchell County approves PILOT deal with Simple Mining LLC for Osage data center site

Mitchell County supervisors voted to approve a payment-in-lieu-of-taxes contract with Simple Mining LLC for a data-center site in Osage on parcel 10-25-100-013, county staff said.

County staff told the board the contract provides a $10,000 community betterment payment to the Mitchell County general fund for the Osage site, with the amount to be reduced if the equipment or pods on the parcel become subject to property taxation. "The contract allows for a full $10,000 government fee directly to the Mitchell County general fund," a staff member said during the discussion.

Board members and staff discussed the county's two potential sites. Staff said the Osage site contains space for the larger deployment and was the basis for the $10,000 figure, while the Little Cedar location is smaller and was proposed at $5,000 per site if completed. Staff also told supervisors that Heartland Power had been informed and that some responsibilities about grid-demand response—allowing an operator to substantially reduce power draw during peak events—are between the data-center operator and the local utility, not the county.

The staff presentation noted the contract language anticipates a grid-demand-response capability and referenced a 98% possible reduction in power draw during peak events; the board did not adopt technical changes to that language at the meeting. Noise-control guidance was also discussed: staff said Iowa guidance recommends a daytime level of about 65 dB and that staff had raised noise concerns for county review.

The board moved, seconded and approved the contract on a roll call vote. County staff said the Little Cedar site is not yet complete and any additional pods there would be addressed separately.

The agreement directs staff to finalize and sign the contract with Simple Mining LLC; the board did not attach additional conditions beyond clarifications discussed during the meeting.