The Cedar Falls Planning and Zoning Commission is weighing new regulations on cryptocurrency mining operations following a request from Cedar Falls Utilities to put a crypto mine near a power plant it plans to build.
A public hearing on the changes was scheduled for April 8 but was pushed back to April 22 after nearby residents raised concerns about noise levels, environmental impacts and harm to property values.
Cedar Falls resident Nathan Nebbe lives on 22 acres of land directly across from the industrial park where both the crypto mine and the Viking Energy Center would be built. The park has "engulfed" the land around his home, where he and his parents have lived since 1981.
“I was flat-out hurt when, a couple days ago, we [got] this letter telling us that [the property in question] is for a crypto mine. I’m sorry, that’s what it is,” Nebbe said. “We’ve been here 40 years. That was a gut punch.”
Nebbe said he and his family have worked to restore the land to its natural ecosystem, where ducks, beavers and other native wildlife roam freely. Now, he’s concerned about the water and electrical use of the crypto mining operation that could be on the other side of the fence at the edge of his property.
“There is so much insecurity here, so much doubt, such a lack of information,” Nebbe said. “A power plant — that is not trivial. Crypto mining is not trivial. And we have been, I think, as good of citizens to this community as possible.”
Dennis Nebbe, Nathan’s father, who also lives on the family land, said he thinks their property value would drop significantly if the power plant and crypto mine were built on the adjacent plot.
“Now we’re talking about something that we didn’t sign on for, something that is going to probably destroy the value of our property and undo what we’ve tried to do over 40 years,” he said.
Officials with Cedar Falls Utilities said they have been looking at building the proposed power plant on the land since 2022 to help bring long-term reliability and affordability to the utility’s customers.
“This 38 acres of land that we’re looking to acquire, if we can rezone it so we have allowable setbacks, we have plenty of buffer area so that we can do whatever we need to do to mitigate for aesthetics and noise and everything,” said Tom Risse, the project manager for the Viking Energy Center. “It’s all closed-loop water systems. We’re not digging any onsite wells. We don’t have any water discharge.”
Matt Hein, the director of energy infrastructure with Simple Mining, the bitcoin mining operation that would be housed at the site, said he has worked with the city to design a new system that makes less noise by using larger, slower fans.
“One of the things we pride ourselves on is collaboration with utilities and communities,” Hein said. “We don’t sneak in anywhere. We are very open and honest about what we do. We have offered and given tours to the utilities, the city.”
Hein said the new facility would require at least 50 employees to operate.
“Our large consumption of electricity is an economic benefit to the city of Cedar Falls,” he added. “We help pay for schools. We help pay for roads by our operations."
City officials said there are currently three locations where cryptocurrencies are mined in Cedar Falls, despite crypto mining not being an allowable use in city code.
"When they were presented, we didn't really know what we were permitting and what the actual use was," said Planning and Community Services Manager Karen Howard. "We didn't have a good understanding of cryptocurrency mining at the time. I think this is a brand new thing that's happening across the country."
The commission agreed to discuss the proposed rezoning and laws again at its April 22 meeting after gathering more data on potential environmental impacts.
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Nathan and Dennis Nebbe are family members of IPR Talk of Iowa Host Charity Nebbe. Charity was not involved in the writing or editing of this article.
