Lima City Council enacted an 18-month moratorium on new data center construction within city limits and new requests for city-supplied water to developments in outside municipalities. The decision came at its Monday meeting held in the Mercy Health-St. Rita’s Graduate Medical Education Center auditorium at 751 W. Market St., Lima.
Mayor Sharetta Smith stated that the pause is a prudent step as Ohio becomes "one of the fastest-growing states in terms of data centers looking to locate here." She noted the need to evaluate city standards for future large-scale commitments due to evolving state and federal regulations.
The moratorium specifically applies to new data center projects within Lima’s city limits. A press release from the city clarified that the existing agreement to provide water for the Google data center currently under development in American Township will not be affected.
Mayor Smith highlighted a significant motivation for the moratorium: the challenge Lima faces in fulfilling data center requests from a regulatory perspective. She explained that Lima’s zoning code was established decades before data centers existed, leaving the city’s administration without adequate resources to properly assess such projects. Referencing the American Township data center, Smith said, “the only question we had to review or answer was whether or not we had the water capacity.” She added that if a data center were to locate within Lima, “there are other questions that we should be asking as a city, and our current code does not provide for us to ask those questions or get any guidance about what those should be.”
During this 18-month period, Mayor Smith has instructed city development directors to evaluate various standards. These include appropriate land use, setbacks, electric demand, community benefits, and developer responsibility for infrastructure costs, among other factors. According to the city’s press release, directors will also monitor evolving state and federal policies, engage partners, and prepare recommendations for City Council.
The ordinance to enact the moratorium passed with six votes, with one abstention. Second Ward councilor Tony Wilkerson was not present at the meeting. Third Ward councilor Jesse Lowe abstained, citing "not having enough information" as his reason. Lowe expressed concerns, stating, “I don’t know if they’re trying to bring one within itself. We need more information, and they’re not telling us nothing.”
While Mayor Smith declined to comment on any discussions with other companies regarding bringing data centers to Lima, the city’s press release noted the moratorium could conclude sooner if City Council adopts appropriate standards before the 18-month period expires. Smith affirmed that the measure "is not a retreat from economic development or from responsible data center investment,” emphasizing the need for due diligence that reflects potential commitments and broader responsibilities when development is proposed within the city’s jurisdiction.
In other business, Lima City Council conducted a public hearing and subsequently passed an ordinance rezoning 35 parcels in the Cary Estates No. 2 Subdivision, specifically properties near Elijah Parkway, Gloria Avenue, and Jenny Place. These parcels were changed from Class I-Industrial to Class II-Residential. According to housing and neighborhoods associate planner Michael McBeth, this rezoning is intended to protect the integrity of the single-family-home neighborhood from new business developments.
Council also enacted a six-month moratorium on processing or approving applications for shared living facilities, commonly known as “group homes.” McBeth stated this moratorium will provide the city with time to update its zoning code, which dates back to the 1950s, to align with the Ohio Revised Code. The update aims to define group homes and improve accessibility for disability-friendly architecture.
In addition to these measures, the council approved several other ordinances. These included authorizing the mayor to terminate a water service agreement with Golf at Sugar Creek LLC, which will reduce rates for 38 water customers outside Lima. Other approvals included a contract with Elite Builders General Contracting LLC for Schoonover Observatory site improvements, and various ordinances authorizing the mayor to receive and administer funds from the Mental Health Recovery Services Board for the Lima Municipal Court’s specialty docket and addiction treatment programs. Council also authorized the mayor to apply for, receive, and administer funds for the fire department from the Ohio BWC 2026 Firefighter Exposure to Environmental Elements Grant, and for the police department from several U.S. Department of Justice programs, including Community Oriented Policing Services microgrants and the COPS Hiring Program. Further ordinances involved amending codified ordinances regarding municipal parking lots and basic pay for fire chiefs, as well as contracts with PropertyRoom.com Inc. for the police department, govdeals.com for disposing of obsolete hard drives, and New Lima-Housing for the Future Inc. for various housing-related services and training. Lastly, ordinances authorizing contracts with Soldiers of Honor for a Boxing Bootcamp Program and the Bradfield Community Center for Hoops programs were approved.
Lima City Council’s next regular meeting is scheduled for 7 p.m. Monday, September 28, and will be held at the same Market Street location while elevator work is completed at 50 Town Square.
