The December 1 hearing is part of the established rezoning process, not an effort to overturn the Planning Commission’s recommendation.
Yesterday, the Town of Mountain City announced a public hearing on a zoning amendment.
“Notice is hereby given that the Town of Mountain City Board of Mayor & Aldermen will hold a Public Hearing on December 1, 2026 at 6:30 pm at City Hall, 210 South Church Street, Mountain City, TN 37683 to consider the following petition for a zoning amendment:
Applicant/Owner: James H. Phipps
Subject Property Address/Location: 1455 South Shady Street, Mountain City, TN 37683
Current Zoning Classification: M-1, Restricted Manufacturing and Warehouse District
Proposed Zoning Classification: M-2, Manufacturing Warehouse District
Description of Request: Request to rezone approximately 8.26 acres from M-1 to M-2 to allow for use of land for Modular AI Factory/Data Center.
All interested persons are invited to attend and be heard. A copy of the proposed rezoning application is available for public inspection in the City Hall during regular business hours. Please note meeting location subject to change.”
This is the same zoning amendment that was the subject of the October 22 Planning Commission meeting, at which the commission unanimously voted not to recommend the rezoning.
That meeting was well attended and contentious at times, and judging from social media posts since yesterday’s announcement, it appears that the December 1 meeting might be as well.
We would like to provide some context on what is happening. Many people on social media have expressed the belief that the Town Council is attempting to ram through something that has already been voted on. This is not true. The Planning Commission does not make the final decision on the amendment. It votes on what recommendation to make to the Town Council, but it is the council that makes the final decision.
Once the recommendation is made, the applicant can proceed with the rezoning request before the Town Council. James Phipps could have attempted to do this for the November meeting, but the public hearing requires 21 days’ advance notice, so there would not have been enough time. Therefore, the hearing was scheduled for December 1 and announced on November 10, 21 days in advance.
This is the correct way to do it. The public hearing is a required part of the rezoning process, regardless of the Planning Commission’s recommendation. Rather than an attempt to circumvent the commission’s vote, the Board of Mayor and Aldermen is following the established procedure for considering the amendment.
People are encouraged to attend the public hearing. However, based on previous votes and prior statements from existing and newly elected aldermen, this is more than likely just the final necessary step toward denying the amendment. Mayor Jerry Jordan and Vice Mayor Celeste Dunn both voted against the rezoning at the Planning Commission meeting, and Alderman Ray Dowell and incoming Alderwoman Amelia Lopez-Saltarelli have both previously stated that they will also vote no.
Some on social media have speculated that this is a new client for the property. This is also not true. According to a spokesperson for Mr. Phipps:
“This is just a procedural extension of the initial application. No arrangements with any specific companies or entities are finalized at this time. There are currently no finalized plans for any construction on that site and it is the same application as the one that was initially presented at the planning board which is readily available.”
Additionally, BluSky AI, the company previously interested in leasing the Shady Street lot, has stated that it is no longer considering Mountain City. We reached out to Trent D’Ambrosio, the CEO of BluSky, earlier today to ask whether the company was awaiting a decision before moving on. D’Ambrosio replied:
“BluSky AI Inc. has terminated all activities surrounding the project. The company will not be revisiting the project; the company prides itself on collaboration with local communities and believes that that local attitude is a non-starter for BluSky AI Inc.”
While we strongly encourage Mountain City residents to express their opinions and exercise their right to be heard, the available evidence suggests the amendment is unlikely to pass. The December 1 hearing appears to be the final step in a process that began months ago, rather than an attempt to circumvent the Planning Commission’s recommendation. We hope those attending will keep that distinction in mind when addressing the issue.
For further conversation on this issue, join Sheila and I as we discuss the upcoming meeting on the Johnson County Line Podcast.
