Former Sen. Ron Stollings challenges data center deal at old Hobet Mine site

The former Hobet Mine site near Danville, W.Va., was once envisioned as a hub for mixed-use development and infrastructure improvements. Now, state officials have certified a plan to build a data center on the property.

Ron Stollings, a former state senator and past chairman of the Corridor G Regional Economic Development Authority, reviewed a report from the Charleston Gazette-Mail released over the weekend. The article detailed that the state approved certification for Texas-based LM Core Energy Services. Stollings noted that the approval process did not include a period for public comment.

Stollings recalled that federal funds initially supported plans to extend Route 3 as a southern Charleston bypass. However, former Governor Jim Justice terminated that funding stream. Stollings described the 17-mile area as a large, flat space with strong potential for economic activity. He has used his ATV on the new bridge constructed on the property.

His concerns center on House Bill 2014, legislation passed by the state legislature last year. Stollings argued that the bill restricts county control over tax revenue generated by such developments. He stated that the measure directs a large portion of taxes to the state general revenue fund rather than keeping them local.

"Takes a lot of the tax and puts it into the state’s general revenue fund instead of letting the county, which Boone County has fallen off the face of the earth since the downturn in southern West Virginia coal," Stollings said during a Monday appearance on MetroNews “Midday.” He added that he had hoped for a diversified portfolio of factories and jobs to build a new tax base.

Stollings is not opposed to the data center itself. He suggested that locating the facility on less desirable land would allow developers to help fund infrastructure like water and sewer systems. This approach, he said, could create a balanced outcome for the region. The property spans into Lincoln County, though Stollings focused on the impact on Boone County.

He pointed out that Boone County has historically paid high coal severance taxes, with 93 cents of every dollar going to the state while the county retained seven cents. Stollings expressed frustration that the new data center approval may follow a similar pattern. He said the area offers room for both data centers and other types of development, provided the state allows local governments to retain more of the tax benefits.

The certification for LM Core Energy Services is currently in place. Stollings continued to voice his preference for a different approach to development on the former mine site.