---
title: Microsoft Asks Cherry Valley, IL to Extend Its Data Center Permits to 2029. The Planning Commission Voted 5-0. Residents Objected.
description: Cherry Valley's Planning and Zoning Commission recommends extending Microsoft’s data center permits to 2029. Key decisions and community reactions are highlighted.
image: https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/68c301ebaa36be33aa2af8f7_1a3f16114a452999cc4d7d6b36ae1602_Obedio%20march%20of%20progress.png
---

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# Microsoft Asks Cherry Valley, IL to Extend Its Data Center Permits to 2029. The Planning Commission Voted 5-0. Residents Objected.

![Obedio research](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg)

 Obedio research

October 8, 2026

On September 16, 2026, the Planning and Zoning Commission in Cherry Valley, Illinois, voted 5-0 to recommend that the village extend Microsoft Corporation's data center permits to August 31, 2029. Two of the seven members were absent. The Village Board has not voted. Cherry Valley is a village near Rockford.

The permits were first granted in November 2024. Construction has not started. According to the Commission's minutes, Microsoft told the village that grading would begin in summer 2027 and construction in 2028. The minutes say: "This item will be held until the approval of the development agreement is finalized."

The Commission only makes a recommendation. Before the permits can be extended, the request still needs a legal review, a Committee of the Whole meeting and a Village Board vote, according to Rock River Current, a local news outlet, on September 16, 2026. The Committee of the Whole is the full Board meeting as a committee. That outlet reported that no date had been set for it.

## At a Glance

- **Item:** Renewal of four special use permits for a data center in the village's Industrial district (coded IL), first issued under Ordinances 2024-23, 2024-24, 2024-25 and 2024-29.
- **Vote:** 5-0 with two absent, on September 16, 2026, to recommend approval. The Commission voted by the same count to approve its findings of fact.
- **Presented by:** Microsoft Corporation. Speakers for Microsoft included Victoria Rudd, community affairs manager, Michael Stockwell, land development program manager, and Monique Rutte.
- **Project:** A data center campus on land southwest of U.S. Route 20 and Wheeler Road. Building height is capped at 80 feet.
- **Effect:** If the Village Board agrees, the permits would run through August 31, 2029.
- **Payer:** Microsoft says it will make voluntary yearly payments to the village General Fund in place of property tax. The village does not levy property tax.
- **Key figures:** About $1.3 million in the first year of payments, per the minutes. Three buildings in the current plan. About 50 jobs in the first building.
- **Public outreach:** Nine people spoke. Two supported the project. Microsoft says it plans more public open houses.

## What the Commission Voted On

Microsoft asked the village to renew permits it first received in 2024. The minutes describe the request as a three-year extension, to August 31, 2029. The permits cover parcels in the Industrial district and allow data center buildings up to 80 feet tall.

Attorney Aaron Szeto gave the staff report. He told the Commission that construction has not begun because Microsoft has been working on plans. Staff recommended approval.

The Commission then read six findings of fact. As printed in the minutes, the findings refer to a "petition for a variation" and to hardship for the property owner. A variation is an exception to a zoning rule, but this item is a permit renewal. The minutes do not say why variation wording was used. The commissioners agreed with each finding, and the vote to approve them was 5-0-2. Chairman John Totten, Sally Fleegle, Jim Smetana, Larry Gray and commissioner Mike Wesseln voted yes. (Mike Wesseln is not Andy Wesseln, the village water director quoted below.) Bill Lawson and Chris Plummer were absent.

A second vote recommended approval and renewal of the permits to August 31, 2029. It also passed 5-0-2.

## How the Permits Were First Approved in 2024

The Commission recommended the project on August 21, 2024. That vote was 6-0, with Plummer absent. The Commission's recommendation at that time allowed buildings up to 100 feet. The same night, it approved a text change that added definitions for data centers and cryptocurrency mines and set special use rules for them in the Industrial district.

The Village Board passed the permits on Monday, November 4, 2024. The minutes for that meeting show the four special use permit ordinances carried 4-1. Trustee Nancy Belt voted no on each. Trustees Mike Neville, Sally Hollembeak, Brandi Pearse and Carl Wedig voted yes. The minutes do not record a vote by President David Schroeder on those four ordinances. Two annexation agreements for the same land, for the Aves and the Thorius and Stevens parcels, carried 5-1, also with Belt voting no.

The 2024 Board minutes do not name Microsoft. They list the property owners: the Aves trusts, Mango Creek Cherry Valley, LLC, Lucaya Asset Management, and the Thorius and Stevens trusts. The 2026 renewal application lists the same ordinance numbers as Microsoft's permits. The final ordinances set the 80-foot limit.

## The Plan Today: Size, Power and Water

Microsoft now plans three data center buildings and two electric substations, according to Rock River Current on September 16, 2026. A substation steps down high-voltage power for use on site. The minutes record Stockwell saying the plans went "from 5 buildings to 3 buildings."

None of the documents reviewed for this article states how many megawatts the campus would draw. The minutes say Microsoft will work with ComEd, the electric utility, on its share of electric costs. According to the minutes, Rudd said Microsoft will work with ComEd to pay its fair share of its electric bills without affecting residents. Rock River Current reported that the U.S. House passed the Ratepayer Protection Act the same day. The bipartisan bill aims to make technology companies pay for energy infrastructure.

On water, Andy Wesseln, the village's director of public works and water, estimated use at about 10,000 gallons a day, according to Rock River Current. He put that at about 0.2% of village capacity. Rudd told Rock River Current the design uses a closed-loop cooling system and that Microsoft will not withdraw groundwater at the site. The minutes say Microsoft will pay for any extra water use.

Microsoft says backup generators will run only in emergencies. The minutes say the company will meet state noise rules and plans a noise study after construction is complete. Microsoft plans berms and landscaping toward nearby homes and along U.S. Route 20.

## The Money: Payments in Place of Property Tax

Cherry Valley levies no property tax. The minutes say Microsoft will make voluntary yearly payments to the village General Fund instead. They put the estimate for the first year at $1.3 million.

Rock River Current reported that the agreement is estimated to bring in about $1.3 million a year, and about $25.8 million over 20 years, according to Rudd. The minutes tie the $1.3 million to the first year. The news report does not say which year it means. The development agreement that would fix the terms is not final.

## Jobs: Four Different Numbers

The record gives different job counts at different times.

- August 21, 2024 Commission minutes: Microsoft representatives said each building would have 40 to 50 full-time employees and about 300 jobs in all.
- Rock River Current, August 19, 2024: more than 200 jobs at full build-out.
- September 16, 2026 Commission minutes: about 150 to 250 employees in total, with about 50 for the first building.
- Rock River Current, September 16, 2026: Microsoft said its data centers typically employ 100 to 250 full-time workers, starting with about 50 when the first building opens.

## What Residents Said

The minutes list nine speakers. Greg Kladar is vice president of Ringland Johnson Construction, which owns property next to the site. He supported the project and cited union jobs. Lauren Spencer, the company's chief financial officer and chief of staff, also supported it. She said the site is in an established industrial area.

Abby Ragsdale, a village resident, said she was sad about the earlier approval and that Microsoft's pamphlet felt like "a lie." Susan Minch, a 13-year resident, asked whether residents were consulted and said the village does not need the money. Heather Conner said the first two speakers do not live in the village. Russ Mott asked about the effect on his property taxes. Virginia Coffer said state noise rules are written for residential noise and that home values would fall. Lori Lay, a 62-year resident, said she was disappointed in elected officials. Blaine Cornelius asked how the project "slid in" without people knowing and asked about the orchard and the library.

Rock River Current reported that more than 50 seats were filled and that the overflow crowd stood in the hallway. It said seven residents spoke against the project. It quoted a former village trustee, whom it named as Lori Laye, saying, "I think you sold our souls." The minutes spell the name Lay.

Stockwell answered for Microsoft. The minutes say Microsoft found no studies showing lower home values near its data centers. Village Administrator Jim Claeyssen said every resident received a postcard for a summer 2024 open house at the Tebala Event Center and that the project went through public meetings through 2024.

## Where the Public Record Disagrees

- **When the permits were approved.** The 2026 minutes quote Claeyssen as saying the project was approved in December 2024. The Board minutes show a vote on Monday, November 4, 2024. Trustee Jeff Fustin told the Commission on October 30, 2024 that the permits were going to the Board on November 5, 2024.
- **Why a renewal is needed.** Rock River Current reported that the approval lapsed because construction had not begun by the end of 2025. Claeyssen told the outlet the permit expired because Microsoft was doing its due diligence. The minutes call the item a renewal and do not state an expiration date.
- **How many buildings the plan started with.** Rock River Current reported six buildings in the original plan, in its 2024 and 2026 stories. Microsoft's own project page, dated September 10, 2024, says four to six. The 2026 minutes record Stockwell saying five.
- **How much land.** Rock River Current reported 309 acres in 2024 and more than 300 acres in 2026. Data Center Dynamics reported six parcels covering 350 acres on September 13, 2024.
- **Water.** In 2024, Claeyssen told Rock River Current the campus would use about as much water as 30 homes a day. In 2026, the village's water director estimated about 10,000 gallons a day.
- **Building height.** The Commission's 2024 recommendation allowed 100 feet. The ordinances the Board passed allow 80 feet.
- **First building opening.** Rock River Current reported in 2024 that the first building would open in 2028. In 2026 it reported 2030, and the minutes say construction starts in 2028.
- **Who one Microsoft speaker works for.** The minutes list Monique Rutte as speaking for Microsoft. Rock River Current describes her as an environmental permitting specialist with Brown & Caldwell.

## Timeline

| Date | Event |
| --- | --- |
| August 19, 2024 | Microsoft presents the plan at an open house at the Tebala Event Center (Rock River Current). |
| August 21, 2024 | Planning and Zoning Commission recommends the annexation, rezoning and special use permit, 6-0. |
| November 4, 2024 | Village Board passes the four special use permit ordinances, 4-1. Annexation agreements carry 5-1. |
| End of 2025 | Construction has not started. The approval lapses, according to Rock River Current. |
| September 16, 2026 | Planning and Zoning Commission recommends renewal to August 31, 2029, 5-0 with two absent. |
| Not yet set | Legal review, Committee of the Whole meeting, then Village Board vote. |
| Summer 2027 | Microsoft's planned start of grading, per the minutes. Rock River Current says early construction could begin in 2027. |
| 2028 | Microsoft's planned start of construction, per the minutes. |
| August 31, 2029 | Requested new end date for the permits. |

## Why It Matters for Site Selectors and Developers

Local permits for large projects can run out before a project is ready. Microsoft got its permits in 2024 and needed more time by 2026. The village's own staff recommended extending them. The village treats it as a renewal, and the request went to a public meeting with comment.

The request shows how a village with no property tax handles a large taxpayer. Cherry Valley is asking for voluntary yearly payments. The terms sit in a development agreement that is not final. A developer in a similar village should expect that agreement, not a tax bill, to set the revenue.

The record also shows that a plan can shrink. Microsoft cut its building count and its footprint. Power, payments and water all came up in the local debate. A federal bill on energy costs for technology companies passed the U.S. House the same day, per Rock River Current.

## The Risks and Obstacles

**The Village Board has not voted, as far as the record shows.** The Commission's vote is a recommendation. The Board approved the original permits 4-1, with one trustee opposed.

**The development agreement is not final.** The minutes say the item will be held until it is.

**The site plan is not approved.** The minutes say design of the first building follows site plan approval.

**Power is not quantified.** The documents reviewed give no megawatt figure. The terms with ComEd are described only in general terms.

**Most speakers were opposed or had questions.** Seven of the nine speakers opposed the project or raised questions about it, according to the minutes. Rock River Current reported a crowd that overflowed the room.

**The numbers in the record do not match.** Jobs, buildings, land and water use all appear with different values in different documents, as shown above.

## What to Watch

- The date of the Committee of the Whole meeting, which had not been set as of September 16, 2026.
- The final development agreement, and whether the payment is stated as $1.3 million for the first year or for each year.
- The Village Board vote on the permit extension to August 31, 2029, and whether Trustee Belt, who voted no in 2024, votes the same way.
- Site plan approval, which comes before design of the first building.
- Microsoft's planned public open houses and its arrangement with ComEd.
- Whether the Ratepayer Protection Act moves past the House.

This article is factual background and is not legal, financial, or investment advice.

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