Stollings questions data center approval in Boone County

The West Virginia state government certified a proposal for a data center on the former Hobet Mine property near Danville without a public comment period. The approval was granted to LM Core Energy Services, a company based in Texas, according to a weekend report from the Charleston Gazette-Mail.

Former state Sen. Ron Stollings voiced concerns about the process and the location. He served as chairman of the Corridor G Regional Economic Development Authority Board of Directors. Stollings said the site has long been a target for diversifying the local economy.

He noted that the Hobet property is a large, flat area with strong development potential. Stollings mentioned plans to extend Route 3 as a southern bypass for Charleston. He said then-Gov. Jim Justice halted the federal funding for that road project.

Stollings expressed frustration with House Bill 2014, which the legislature passed last year. He argued the bill limits the ability of counties to keep revenue from new economic activity. He said the law sends a large portion of the tax to the state’s general revenue fund instead of leaving it in Boone County.

"Takes a lot of the tax and puts it into the state’s general revenue fund instead of letting the county, which Boone County has fallen off the face of the earth since the downturn in southern West Virginia coal," Stollings said on MetroNews "Midday" on Monday.

Stollings is not opposed to data centers. He said there is room for multiple types of development on the 17-mile property. He suggested placing data centers on less prime land to help fund infrastructure like water and sewer systems. He believes a mix of retail, hotels, and factories would create a better tax base.

He pointed out that Boone County has paid high coal severance taxes to the state. He said that when he first represented the area, 93 cents of every dollar went to the state fund while the county kept seven cents. He hopes for a diversified portfolio of businesses to support the local future.