Marana tightens data center noise rules and adds decommissioning bonds in split vote

Marana tightens data center noise rules and adds decommissioning bonds in split vote

MARANA — The Marana Town Council on Tuesday, Oct. 20, voted 5-1 to tighten noise limits on data centers and to require operators to post financial guarantees covering the cost of dismantling abandoned sites. During the vote, one council member said he regretted backing the town's two approved hyperscale data center projects.

The ordinance amends the data center section of the town's land development code, which the council adopted in December 2024. The Planning Commission recommended the changes 7-0 on Sept. 30.

Council Member Patrick Cavanaugh cast the lone no vote, and Council Member Herb Kai did not vote. Casting his vote, Cavanaugh said he had backed the two hyperscale data centers and, with a broader understanding, now regretted it. He questioned whether the new limits could be enforced against operators who might treat fines as a cost of doing business.

"I am not satisfied with this ordinance as written," Cavanaugh said during the roll call. "Our residents deserve meaningful protections."

Council Member Patti Comerford questioned his reasoning before voting yes, asking whether he wanted to "de escalate the requirements."

Noise changes

Under the amendments:

• The maximum nighttime noise level at the property line of nearby residential or mixed-use land drops from 55 to 50 dBA.
• A new set of C-weighted (dBC) limits targets low-frequency rumble from equipment such as compressors. The town's acoustical consultant said A-weighted measurements alone de-emphasize that kind of noise.
• Operators face a 5-decibel penalty when an audible tonal component is detected.
• Developers must measure baseline noise over 24 hours. The quietest hourly average sets the baseline, which staff said keeps developers from picking the loudest time of day.

Backup generators may exceed the limits only during a "genuine and unforeseen" loss of power. The ordinance lists situations that do not qualify, including peak shaving, cost management, voluntary curtailment agreements and chronic supply shortfalls. Generator testing must stay within the standard limits.

Staff told Mayor Jon Post the town will withhold a permanent certificate of occupancy from any site that fails a post-construction noise study. Temporary certificates are issued for 30 days and can be extended. Operators must submit annual noise studies for the first five years and afterward at the town's request. Violations would be civil code violations, which could bring citations, fines, action against a business license, court injunctions and, if a court abatement order is ignored, criminal charges.

Decommissioning

The new decommissioning section applies when a site ceases operation for 12 continuous months or when the operator notifies the town it will close. Removal work must begin within 180 days and finish within 12 months. The town may grant 90-day extensions for good cause.

Developers must post a surety bond, letter of credit, trust fund or another form the town accepts when they submit a development plan, before any permits are issued. The amount must include a 15% contingency. The assurance stays in place through decommissioning, carries over to new owners, including lenders after a foreclosure, and is subject to periodic review for expansion and inflation.

Under questioning from Post, staff said the trigger applies only when a whole site is abandoned. An operator running one building could leave idle buildings standing. Staff said other town codes would still govern upkeep of those buildings.

Staff said the new provisions will apply to the Luckett Road North and South specific plans the council approved in January 2026, with one exception. Those plans adopted the noise table as it stood at the time, so the 55 dBA nighttime limit will continue to govern them. Staff said ongoing litigation has held up that development and no development agreement has been discussed.

Interim Development Services Director Brett Wittenberg said the amendments do not change any previously approved rezoning. Town Manager Terry Rozema said Marana was the only Arizona jurisdiction to adopt a data center ordinance before receiving any applications.

During the public hearing, one resident who said she is an engineer urged the council to send the ordinance back to the Planning Commission. She cited the risk of chemical contamination from leaking closed-loop cooling systems. Another resident asked the council to require annual review of financial assurances. He also noted that a project abandoned mid-construction would never trigger decommissioning, because the trigger is a site that stops operating. Staff responded that the assurance would already be posted at that point and would apply if the site did not operate for 12 months. A third speaker asked about light and heat. Staff said data centers must follow the town's outdoor lighting code and that no town code addresses temperature.

$96 million sewer plant bond

The council voted 7-0, by roll call and with an emergency clause, to authorize the sale of up to $96 million in pledged excise tax revenue obligations. The money will finance an expansion of the town's water reclamation plant.

Finance Director Yiannis Kalaitzidis said the project adds 1.5 million gallons per day of treatment capacity, doubling what the plant can process. That would allow about 10,000 more equivalent dwelling units, or roughly 25,000 to 30,000 future residents. He said the plant could begin accepting flows around October 2028, with completion expected in December 2028.

Debt service is planned to come from impact fees paid by new development. The bonds are secured by the town's sales tax and state-shared revenues. Kalaitzidis said other structures would have cost at least 75 basis points more in interest.

Mark Reader, the town's financial advisor from Stifel, told the council that Moody's had rated Marana AAA that morning. He outlined a 25-year repayment schedule with projected rates of 3.85% to 5.35%. The schedule includes early interest-only payments, then level annual payments. Reader said the town has $6 in pledged revenue for every $1 of debt service. Those revenues totaled about $100 million in fiscal 2024-25 and are projected at about $98 million for 2025-26. Local sales tax brought in a record $66 million in 2024-25 and is expected to reach about $65 million this year. Reader said rates had risen more than 140 basis points over the past year and that the sale could come as soon as next week.

Cavanaugh asked what would happen if growth slowed and impact fees fell short. Kalaitzidis said the town would likely lend money from an unrestricted fund to the impact fee fund to avoid a default, then repay the loan when development picked up.

Retiree rehiring program

The council, by voice vote with no opposition heard, adopted a Leadership Continuity Program. It lets the town keep executives and critical senior managers on after they become eligible to retire under the Arizona State Retirement System. Initial agreements are capped at 12 months, and extensions need new justification. Staff said the town manager gives final approval after review by human resources, legal and finance.

Vice Mayor Roxanne Ziegler urged that participants not receive benefits. Rozema said that is typically not done. Cavanaugh asked whether compensation agreements would be available to the public. Staff did not directly answer.

Detention center opposition

During the call to the public, three residents again urged the council to deny a business license to Management and Training Corporation for a proposed U.S. Immigration and Customs Enforcement detention center. They cited the company's record at other facilities and asked the town to issue a formal public zoning determination for the site. One speaker said capacity estimates range from 775 to more than 1,300 detainees. The council did not respond directly.

Also discussed:

• Two Tangerine Ridge residents asked the council to help persuade the builder of the adjacent Tangerine Crossing development to place required one-story homes on 18 additional lots bordering their neighborhood, to preserve views and privacy.
• Rozema reported 66 single-family home permits so far in October, compared with 70 in all of October 2025. He said police received a $125,884 grant from the Governor's Office of Highway Safety for DUI enforcement and speed enforcement equipment. He also said the Tangerine Road and Interstate 10 project is complete except for work at the railroad crossing.
• The consent agenda, approved without discussion, included an intergovernmental agreement with the state for design review of the Moore Road interchange at I-10 and a fee schedule change renaming the development plan package fee.
• After an executive session, the council voted to direct staff to proceed as discussed. The topic was not disclosed.

This report was drafted by Claude Opus 5.5 from a live transcript produced by Deepgram Nova-2, then reviewed and edited by Nicholas De Leon with Claude Opus 5.5, and published at 8:53 PM MST on October 20, 2026. Read more about how this is made.