Columbia Co. Planning Commission Denies Bitcoin Mining Application

DAYTON—The Delany Room was packed on Monday night as the Columbia County Planning Commission heard from the public and from stakeholders interested in a Site Plan Development Agreement Application for a proposed bitcoin mining center to be located on Columbia Rural Electric Administration property east of Dayton.

After a short presentation from Leonard Ruff, the architect for the applicant, Eastern Mineland LLC, and followed by a lengthy Q&A session, the three members of Planning Commission present deliberated on the merits of the bitcoin mining center and voted to deny the application.

County Planning Dept. staff had recommended denial of the application based on inconsistency with the policies and goals of the Columbia County Comprehensive Plan.

“There is no bias here,” said Planning Director Meagan Bailey. “As the Planner I have reviewed the applicable codes and I do not find it is a good use for our land.”

Bailey said the proposal did not meet the goals for carefully planned growth, preserving small town character, or protecting the county from businesses with unwanted environmental impacts. In her report she noted the potential for nuisance code violations due to long-term, low-level consistent noise. She said she welcomes public comments.

“They open the door to concerns and issues that I may not have covered in my review,” she said.

Bailey noted in her report a significant amount of public concern regarding the potential for high electricity and water consumption, if the bitcoin mining center were approved.

This, and other concerns, such as the lack of job creation, infrastructure requirements, potential water shortages and possible higher rates for tax payers were expressed by people at the meeting.

Julia Mead summed it up. “It seems like we’re going to use a lot of natural resources for this. I don’t think we have the services and support for what it is going to give back to us,” she said.

Chris Mills, the County Assessor, was asked to weigh in on the tax implications. She said the project would be a “totally” personal property project.

“They are going to rent land from REA, and that 2.8 acres will be taxed to REA, but all the equipment that goes on will be listed as personal property, and will be placed on a depreciation schedule."

According to Mills, the computers have a five-year life before being reduced to 10% of their original cost. The cooling equipment, containers and security cameras go down to 5 to 15% of the original cost within 12 years, she said. For instance, at the end of 12 years the value of a $5,000 unit would be $600.

“So whatever they’re not paying, everybody else picks up,” she said.

Officials from the Port of Columbia submitted a letter in favor of the application, and it was read during the meeting by Kathryn Witherington, the Port’s Economic Development Coordinator.

Witherington read, in part, “Comments have been heard from the community members stating one reason this application should be denied is because of the limited local economic impact. We find this thinking to be very concerning for our community. A huge number of businesses here are one and two-person mom and pop operations, with little asset values.

“Columbia County counts its successes one job at a time. Economic development in a rural community is hard. We do not want to look unfriendly to businesses, and we do not support making site development decisions based on someone else’s perceived value, or lack of value of a private business,” she read.

The Planning Commission’s decision to deny the Eastern Mineland, LLC Site Plan Development Application can be appealed in writing to the Board of County Commissioners, within 10 days, according to Bailey.