Data Center Backlash Dominates as Pittsburg Approves New Credit Card Fee

Pittsburg's City Council faced a wall of public opposition to the Aveo data center project Monday night, with roughly two dozen speakers demanding a moratorium as neighboring cities move to ban such facilities. The council also split 4-1 on a new credit card processing fee that shifts costs to electronic payers, adopted the city's annual federal community development report, and celebrated a wave of new businesses signaling commercial momentum.

• Roughly two dozen residents demand a moratorium on the Aveo data center, citing diesel emissions near schools, wildlife displacement, and a lack of transparency around the city's advisory committee
• Council votes 4-1 to replace a $1 flat credit card fee with a 3.75% cap, adding a 45-day notice period after pushback from low-income and disability advocates; Vice Mayor Lopez dissents
• Two grocery stores, two hotels, and a prefab home manufacturer anchor an economic development update showing accelerating commercial investment
• CDBG annual report approved unanimously despite housing rehabilitation falling short of federal targets — only 3 of 5 loans completed
• Housing Authority subordinates $500,000 in public funds for youth housing project over objections about missing risk disclosures
• Consent calendar draws detailed public challenges on transparency, contract oversight, and federal grant compliance before passing unanimously

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Residents Turn Up the Heat on Data Center

Roughly two dozen speakers used public comment to demand the council halt the Aveo data center project approved on the former Pittsburg golf course, making it by far the most intensely discussed topic of the night. Speakers referenced moratoriums recently passed in Richmond and Oakley, and opposition movements in Hayward and San Jose, arguing Pittsburg should follow suit.

Why it matters: The data center's Phase 1 is approved and moving forward on a site approximately 1,500 feet from Rancho Medanos Junior High and roughly 700 feet from residences. Speakers raised a litany of concerns — diesel generator emissions, massive electricity and water consumption, noise and vibrations, wildlife displacement, property value impacts, and infrastructure security risks — arguing the project was approved without adequate public input or environmental scrutiny.

Where things stand: Several speakers targeted the city manager-appointed Citizens Advisory Committee, questioning its composition and transparency. Mark Lindy, a public commenter, called the committee "a farce" with members including former officials, trade representatives, and a minor, and demanded it be dissolved. Lou Flores said she applied for the committee but never received a follow-up. Tony Santos demanded the committee's minutes be placed on council agendas.

Mazhar Becerra, a student representing peers at Rancho Medanos Junior High, urged the council to establish a coordinated safety protocol and real-time alert system, noting there is no joint evacuation plan between the school and the data center site. Cynthia Cardinale, who said she has lived in Pittsburg for 77 years, described a daughter with leukemia on daily chemotherapy and autistic grandchildren affected by vibrations, questioning non-disclosure agreements signed with the data center developer.

Theresa Martin delivered a detailed technical critique of the project's environmental review, arguing the CEQA process involved improper piecemealing, inadequate air quality modeling, and insufficient analysis of cold-start diesel emissions near sensitive receptors. Lucas Miranda, identifying himself as a member of the Stop Pittsburgh Data Center Coalition, demanded an immediate moratorium and ban.

The other side: The City Manager defended the advisory committee as a constructive dialogue space and pushed back on calls for immediate action. "We are not accepting anything as relates to Phase 2 or Phase 3 right now, so the project, any future developments, or any future application processes are on hold," he said. He noted there is only one location in Pittsburg zoned for data centers.

What's next: Mayor Dionne Adams requested an FAQ update and a timeline for the advisory committee's public reporting, asking for deliverables and opportunities for the public to follow its work. The City Manager committed to a public report-out after two more committee meetings.

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Council Passes 3.75% Credit Card Fee, Lopez Dissents

The council voted 4-1 to replace the city's $1 flat credit card processing fee — in place since 2016 — with a cap of 3.75% for credit cards and $2 for e-checks. Vice Mayor Angelica Lopez cast the sole no vote.

The basics: The fee change addresses a widening gap between what the city collects and what it pays processors. Sarah Bellafronte, Assistant to the City Manager, presented data showing the shortfall: "By last fiscal year, 25-26, that gap had grown to over $510,000. The city collected about $121,000 but paid out $631,000." Under the new structure, vendors collect fees directly at the point of sale; cash, check, and mail payments remain free.

Why it matters: The resolution shifts roughly $370,000 or more in annual processing costs from the general fund to residents who pay electronically — a change critics say hits hardest on those least able to absorb it.

Where things stand: Four public commenters raised concerns. Lynn Doherty called the rate excessive: "3.75% is abnormally high. Most are 1.5% to 2.7%." She called for a hardship exemption for fixed-income and disabled residents. Mark Lindy, a disabled retiree, asked why the city let the cost gap grow for years and requested a $1 cap for Social Security and disability recipients. Theresa Martin argued that surcharging debit transactions may violate the Durbin Amendment under Dodd-Frank and raised questions about Proposition 218 and Proposition 26 revenue generation limits. Coco urged the council to consider community struggles before adopting the new fees.

The other side: Vice Mayor Lopez explained her no vote by pointing to the burden on disabled residents. "I do think about the disabled community. It's very hard for them to make it here to City Hall, especially because coming to pay here with a check or cash can probably take like $30 extra just to be able to get here with public transportation," she said. She asked about fee waivers for low-income households. The City Manager responded that income verification programs would cost more than the fees themselves.

Decisions: The resolution passed 4-1 (For: Councilmember Cabada, Councilmember Juan Banales, Councilmember Jelani Killings, Mayor Adams; Against: Vice Mayor Lopez) with an amendment adding a 45-day notice period including water bill inserts before implementation.

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Two Grocery Stores, Two Hotels Anchor Economic Revival

Director of Community and Economic Development Jordan Davis delivered a sweeping two-year update painting a picture of a city finally attracting the commercial investment residents have demanded for over a decade.

Why it matters: "When I came to the city of Pittsburgh 12 years ago, the number one thing we heard from residents was that there needed to be more grocery shopping opportunities," Director Davis said. Two have now opened in 14 months — Sprouts and Cielo Supermarket, which fills a food-access gap at Highland Square that has existed since 2019.

Where things stand: The update catalogued new commercial arrivals: Courtyard by Marriott is open with Home2 Suites on the way, Tractor Supply is coming to Century Plaza, and Roof and Realm is manufacturing prefab homes in the former Bombardier facility. The city distributed more than $350,000 in facade improvement grants across 27 businesses, launched the Pittsburgh Eats program with $120,000 in grants to 12 food businesses, and highlighted K2 Pure Solutions, which produces chlorine-free bleach and is breaking ground on a hydrogen facility. "They've taken hundreds of chlorine-filled rail cars off the tracks over the decade-plus that they've been here," Director Davis said of K2 Pure.

Mayor Adams highlighted Roof and Realm and K2 Pure for creating local employment. "Those 2 companies use local labor. And so that is bringing home jobs closer to home where people aren't commuting 2 hours a day, 4 hours away from their family," she said.

Looking ahead, staff plans to update the 2022 Economic Development Strategic Plan, develop a five-sector incentive policy, pursue an Enhanced Infrastructure Financing District (EIFD) for infrastructure reinvestment, and apply for federal Opportunity Zone 2.0 designations across four census tracts.

Councilmember Killings praised the iterative approach and asked about EIFDs and Opportunity Zones. Public commenters Tony Santos and Pauline Johnson raised concerns about the lack of food options near the planned sports tourism complex and its proximity to data center diesel generators.

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CDBG Report: Services Surge, Housing Rehab Falls Short

The council unanimously approved the FY 2025-26 Community Development Block Grant Consolidated Annual Performance and Evaluation Report, which must be submitted to HUD by Sept. 30.

Why it matters: Public services funded through the $776,000 program reached 9,284 residents — nearly double the 5,257 target — through six nonprofits including Dentists on Wheels, La Clinica de la Raza, Loaves and Fishes, and St. Vincent de Paul. Infrastructure spending fully deployed $358,000 for ADA ramps and Lynch Hill Drive safety improvements. But housing rehabilitation completed only 3 loans against a target of 5, with staff citing documentation delays and contractor issues.

Administrative Analyst Ishani Rasenayagam presented the report. Public commenters pushed for accountability: Lynn Doherty called for a corrective action plan for the housing shortfall and 30-day future comment periods. Theresa Martin questioned the ratio of $130,000 in administrative costs to program delivery and the timing of placing the CAPER and the Housing Authority subordination on the same agenda.

Decisions: Approved unanimously, 5-0.

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Housing Authority Approves $500K Subordination Over Objections

The Housing Authority Board, meeting at the top of the session, unanimously approved subordination of a $500,000 forgivable loan for the Village of Hope Transitional Age Youth Housing Project — moving the city's lien behind a private lender.

Lynn Doherty argued the agenda packet lacked essential documents: "Subordination is not a clerical action. It is a major financial decision that determines whether the public's $500,000 is protected or exposed." Theresa Martin raised concerns about HUD compliance and alleged Brown Act violations.

Decisions: Approved unanimously, 7-0.

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Consent Calendar Survives Transparency Gauntlet

Multiple public commenters — led by Lynn Doherty, Keisha Johnson, Tammy Chandra, Maeve Lillis, and Theresa Martin — filed detailed objections across consent items 7 through 13, requesting several be pulled for separate votes. Concerns spanned missing bid tabulations and Davis-Bacon compliance for a traffic calming contract, a JAG grant lacking equipment lists, undisclosed cumulative contract totals for water treatment plant consultants, and the retroactive ratification of an $868,122 utility mailing contract with Maelstrom Corporation that was executed without council authorization.

The City Manager addressed each concern before the vote, noting the conflict of interest code redline was included in the posted agenda, bid ranges were in the staff report, and the Maelstrom ratification was proactively brought to council. "Both of us believe that this should come back before the City Council. So we were bringing this to the attention of the City Council of a past contract," he said of the Maelstrom item.

Decisions: Consent calendar approved unanimously, 5-0. Councilmember Cabada recused from items 11 and 12 due to property proximity to the water treatment plant project.

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Minor Items

• Cielo Supermarket proclamation: Mayor Adams presented a Think Pittsburgh proclamation to owners Hector and Fabiola Gomez for opening the ethnic supermarket at Highland Square, which includes a restaurant, carnicería, and food market.
• Employee awards: Joy Walker and Bobby were honored as Employee of the Year and Pittsburgh Pride Award recipients.
• Air District grants: Mayor Adams reported advocating for Pittsburg and Bay Point to be included in $13 million in recommended Bay Area Air Quality Management District community grants for respiratory health, air filtration, and workforce training.
• Youth transit ridership: The Summer Youth Ride Free program through Tri-Delta Transit logged 31,600 rides in June-July, a 61% increase over the prior year, funded by Supervisors Diane Burgess and Chanel Scales-Preston.
• Community health investments: The Los Medanos Health Advisory Committee reported $1.4 million in investments including 574 free medical visits through St. Vincent de Paul and 1,000-plus hot showers for unhoused residents through the Clean Start program.
• Tobacco retailer license fees: Councilmember Gonzalez reported the Finance Management Subcommittee discussed tobacco retailer license fees.
• Spanish-language translation: The City Manager announced that live Spanish translation of council meetings has been available since Aug. 3, noting the Governor recently signed legislation removing the requirement to post agendas in Spanish.