A federal judge has dismissed most of a lawsuit filed by North Fork Wind against Knox County, Nebraska, after the county changed its zoning regulations, effectively halting development of a proposed 600-megawatt wind farm. U.S. District Court Judge John Gerrard ruled that North Fork Wind had not proven that Knox County’s new setback requirements and other regulations had interfered with its contracts or violated its constitutional rights to due process and equal protection. However, the judge did allow the company to proceed with a Fifth Amendment claim, arguing that the county’s actions amounted to an unlawful taking of property.
North Fork Wind, which began developing the 45,000-acre wind farm in 2017, had already invested over $12 million into the project and paid $1.5 million to landowners in lease agreements before the county enacted stricter zoning rules. The new regulations included increasing setback distances from 2,000 feet to two miles, requiring a decommissioning plan, and mandating a $5 million insurance policy per turbine. The company claimed these restrictions made the project financially unfeasible and deprived landowners of their rights.
While dismissing most of the lawsuit, Judge Gerrard noted that local governments have broad authority to enact zoning laws for the public interest, even if those laws negatively impact businesses. Knox County officials called the ruling a “substantial victory” and are now considering a ban on new commercial wind farms within the county. North Fork Wind’s remaining claim will continue in court as the company seeks to prove that Knox County’s regulations amounted to an unconstitutional government taking of property.
Comments