r/hagerstown • u/Embarrassed-Pie-2070 • 23h ago
Hagerstown 12 Reasons to Demand Answers at Hagerstown’s Data Center Annexation Hearing on Tuesday, October 27
Hagerstown’s Mayor, City Council, and city administrator are asking residents to comment on an annexation tied to data center development while operating under the City’s nondisclosure agreement with Diversified Capital, the company behind the project. As we previously reported, the City has refused to provide that agreement to us, despite our Maryland Public Information Act request.
Both Washington County and Hagerstown officials met privately with Diversified Capital CFO Moshe Rubin on December 9, 2025, in separate closed-door meetings. As we documented in our reporting, Hagerstown’s minutes place Diversified Capital CFO Moshe Rubin with the Mayor, City Council, and senior City staff. The County’s minutes identify Rubin and other project representatives at its confidential presentation, which officials said was covered by an NDA.
Now, at the Tuesday, October 27 hearing, residents are being asked to weigh in while the City continues withholding its agreement with the developer, and officials cannot get their story straight about who is responsible for keeping it from the public. That meeting also includes approximately $30.6 million in proposed wastewater contracts that sewer customers would help fund. Residents should be able to examine the City’s commitments and understand the potential costs before officials make further decisions. We reviewed the 567-page agenda packet and identified ten things residents should know. Page numbers below refer to that packet.
1. The agenda leaves the final annexation vote date undetermined
The proposal would bring 171.88 acres at 12440 Burkholder Lane and 12660 McDade Road into Hagerstown with Industrial Mixed-Use zoning. The annexation plan anticipates extending City water to the Burkholder parcel. Staff scheduled a November 10 follow-up discussion, but the proposed resolution leaves its passage and effective dates “To be determined.”
Why it matters: Annexation would put the properties under City land-use rules and advance plans to provide City water. Residents need a clear voting schedule and answers about the data center’s demands before that decision is made. November 10 is listed as a discussion, not a confirmed final vote.
2. Data center development drives this annexation, but only one of 567 pages mentions data centers
On page 97, the packet reproduces the hearing ad placed through a local news outlet with a paywalled website. It describes the acreage and proposed zoning without mentioning the data center development or its anticipated use of City water. The only page we found mentioning data centers is page 247, a Fidelity Power Systems sales sheet advertising “Data Center Cleaning.” Someone searching for an explanation of the development would find a contractor’s marketing material.
Why it matters: Residents should not have to follow our reporting to understand why these properties are being brought into Hagerstown. Leaving the development out of the notice and annexation explanation makes it harder for people to recognize what is at stake and prepare informed comments.
3. The sewer spending could matter as much as the annexation
The hearing shares an agenda with major wastewater spending. A five-year, $52.9 million improvement program lists $49.5 million in planned borrowing and $3.4 million from the wastewater fund. Sewer customers’ payments would help repay the borrowing. The plan also notes $3 million in loan forgiveness within the state financing, so that portion would not need to be repaid.
Why it matters: Borrowing lets the City pay for work now and repay it over time through the sewer system’s revenues, including customers’ bills. Residents need to know what these upgrades would cost them and whether any work would accommodate data center development. The funding page provides no household bill estimate.
4. The wastewater funding plan lists no developer contribution
The five-year wastewater program lists $0 under “Grant or Devel”, the category for grant or developer funding. Its listed sources are borrowing and the wastewater fund, with $3 million in loan forgiveness noted separately within the state financing. No direct developer contribution is budgeted in that table.
Why it matters: If any upgrades are needed to serve data centers, existing sewer customers need protection from paying costs those developments create. Officials should identify the projects these investments would serve and explain what developers would contribute. Any developer payments through connection fees or separate agreements should also be disclosed.
5. Major wastewater contracts could pass together without separate discussion
The Council could authorize approximately $30.6 million through one consent agenda vote, which groups purchases together unless a councilmember requests separate discussion. Page 101.
The proposed authorizations include Carl Belt: $27.73 million, including a $3 million reserve for unexpected costs, and Black & Veatch: $2.84 million for construction engineering and oversight through an amendment to its existing treatment plant contract. The City proposes adding that work without a new competition, citing the firm’s knowledge of the plant. Pages 311–315 and 351.
As we previously reported, Black & Veatch’s January 22, 2026 master-plan proposal included additional “Data Center Owner’s Advisor” services for Hagerstown and Washington County, addressing water demand, cooling wastewater, electricity and siting. The March 24 agenda presented the $2,790,365 master-plan project with that proposal attached. By July, City paperwork said the project had begun.
Our reporting also documented Washington County consultant Greg Murray billing for a meeting with a Hagerstown representative and reviews of Black & Veatch materials. His invoice does not identify the documents or discussions. Black & Veatch also advertises private data center work, including two 300-megawatt substations, and campus services covering water and power.
Why it matters: The City moved forward with a master-plan project whose proposal explicitly included data center advice. It should identify which services it purchased, release the approved scope and explain whether the October plant work reflects data center demand. Those answers deserve public discussion before another multimillion-dollar commitment passes with a list of purchases.
6. The City claims enough water is available without showing the development’s demand
The proposed annexation covers 171.88 acres overall, but the annexation plan identifies the Burkholder parcel at issue for water service as 148.77 acres. For the 148.77 acre Burkholder parcel, the annexation plan states: “Sufficient capacity exists to serve the property.” But the annexation materials do not provide a project-specific estimate of water use, cooling assumptions, or calculations showing how the anticipated development fits within available capacity.
Why it matters: That assurance is hard to evaluate without knowing how many gallons per day the City assumed or how much water is already committed elsewhere. The City should publish the study behind its conclusion and explain whether it accounts for the scale and cooling design of the proposed data center.
Read the other six reasons to demand answers at tonight's Hagerstown’s data center annexation hearing here: https://blog.hagerstownrapidresponse.com/p/12-reasons-to-demand-answers-at-hagerstowns-data-center-annexation-hearing-on-tuesday-october-27