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Posted on: March 2, 2018

Local Law P-3 of 2018

LOCAL LAW P-3 OF 2018

A local law adding §270-28-J under Chapter 270, Article V, Supplementary Regulations of the City Code of the City of Plattsburgh.

A LOCAL LAW IMPOSING A MORATORIUM ON COMMERCIAL CRYPTOCURRENCY MINING OPERATIONS IN THE CITY OF PLATTSBURGH

Introduced by Mayor Read on March 1, 2018 at a Regular Meeting of the Common Council.

Public Hearing to be held on Thursday, March 15, 2018 at 5:00pm in the Common Council Chambers, 41 City Hall Place, Plattsburgh, NY 12901.

 

Be it enacted by the Common Council of the City of Plattsburgh as follows:

§270-28-J Moratorium on Commercial Cryptocurrency Mining Operations

Section 1. Enactment and Title.

The Common Council of the City of Plattsburgh does hereby ordain and enact the City of Plattsburgh moratorium on commercial cryptocurrency mining operations in the City of Plattsburgh. This local law shall impose a moratorium on applications or proceedings, or the issuance of approvals or permits for commercial cryptocurrency mining operations in the City of Plattsburgh.

Section 2. Authorization, Purpose and Definitions.

  • Authorization

Pursuant to the authority and provisions of Section 10 of the Municipal Home Rule Law of the State of New York and the statutory powers vested in the Common Council of the City of Plattsburgh to regulate and control land use and to protect the health, safety and welfare of its residents, the Common Council of the City of Plattsburgh hereby declares an eighteen (18) month moratorium, on all applications or proceedings for applications, for the issuance of approvals or permits for the commercial cryptocurrency mining operations in the City of Plattsburgh. This moratorium will allow time for the zoning code and municipal lighting department regulations to be amended to regulate this potential use.

  • Purpose

It is the purpose of this Local Law to allow the City of Plattsburgh the opportunity to consider zoning and land use laws and municipal lighting department regulations before commercial cryptocurrency mining operations results in irreversible change to the character and direction of the City.

Further, it is the purpose of this Local Law to allow the City of Plattsburgh time to address through planning and legislation, the promotion of the protection, order, conduct, safety health and well-being of the residents of the City which are presented as heightened risks associated with commercial cryptocurrency mining operations.

It is the purpose of this Local Law to facilitate the adoption of land use and zoning and/or municipal lighting department regulations to protect and enhance the City’s natural, historic, cultural and electrical resources.

  • Definitions

“Cryptocurrency” is defined herein as a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

“Commercial cryptocurrency mining” is defined herein is the commercial process by which cryptocurrency transactions are verified and added to the public ledger, known as the block chain, and also the means through which new units of cryptocurrencies are released, through the use of server farms employing data processing equipment. For purposes of this definition, any equipment which requires a High Density Load Service, or any Server Farm, will presumably be a commercial cryptocurrency mining operation.

“Server Farm” is defined herein as three or more interconnected computers housed together in a single facility whose primary function is to perform cryptocurrency mining or associated data processing.

“High Density Load Service” is defined herein as the provision of electrical service where the requested load density, in the portion of the premises containing the load consuming equipment exceeds 250 kWh/ft2/year.

Section 3. Scope of Controls.

During the effective period of this local law:

  • The Code Enforcement Officer, Building Inspector, Planning Board, or Zoning Board of Appeals shall not accept an application for a Commercial Cryptocurrency Mining operation.
  • The Code Enforcement Officer, Building Inspector, Planning Board, or Zoning Board of Appeals shall not grant any permit for a Commercial Cryptocurrency Mining operation.

Section 4. No Consideration of New Applications.

No applications for Commercial Cryptocurrency Mining operations or for approvals for a site plan, special use permit, building permit, or any other permit shall be approved by any board, officer, employee or agent of the City of Plattsburgh while the moratorium imposed by this local law is in effect. Nothing in this local law shall be construed such as to result in any default approval for any application heard or considered during the moratorium imposed by this local law. This moratorium shall apply to all such applications, whether pending or received prior to the effective date of this law.

Section 5. Term.

The moratorium imposed by this local law shall be in effect for a period of eighteen (18) months from the effective date of this local law. It may be terminated earlier if the Common Council determines by resolution that the purpose of the local law have been fulfilled. During the period of the moratorium, the Common Council shall endeavor to amend the local zoning code and/or municipal lighting department regulations to address and regulate Commercial Cryptocurrency Mining operations.

Section 6. Location.

The moratorium imposed by this local law shall apply to the territorial limits of the City of Plattsburgh.

Section 7. Penalties.

Any firm, person, corporation, or other entity that shall establish, place, construct, erect or in any way site or locate a Commercial Cryptocurrency Mining operation described in this local law in the City of Plattsburgh in violation of the provisions of this Local Law shall be subject to, in addition to any penalties prescribed by state or local law, a civil penalty of not more than $1,000.00 for each day or part thereof during which such violation continues. If necessary to remove any construction or property that may have taken place in violation of this local law, then the cost of such removal, including reasonable attorney’s fees incurred by the City, shall constitute a lien and charge against any real property owned or leased by the violator located within the City and shall be collected in the same manner and at the same time as other City charges. The civil penalties provided for by this section shall be recoverable in an action instituted in the name of the City in any court of competent jurisdiction.

Section 8. Validity.

The invalidity of any provision of this local law shall not affect the validity of any other provision of this local law that can be given effect without such invalid provision.

Section 9. Effective Date.

This local law shall take effect upon approval by the Mayor and filing with the New York State Secretary of State.

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