Henrico’s Board of Zoning Appeals denies data center company’s appeal for Varina site

The Henrico Board of Zoning Appeals Thursday ruled that Centra Logistics does not have a vested right to build a data center on Darbytown Road in Varina, upholding the same decision made in December by Henrico Planning Director Joe Emerson.

The BZA’s unanimous decision came after a mixed batch of comments – from several Darbytown Road residents who opposed the proposed data center and also from Henrico business leaders who worried that a rejection of Centra’s appeal (through its subsidiary, Darbytown Road, LLC) would signal Henrico’s shift away from supporting business interests.

The drawn-out vested rights process, which began with Centra’s claim filed on Oct. 1, has been emotionally taxing for Varina residents, according to New Market Village homeowner Amy Burrell, who was brought to tears by the BZA’s ruling.

And the process may not end with the BZA’s decision, since Centra has the option to appeal the ruling to the Henrico Circuit Court.

“We just have to be prepared for the next one,” said Burrell, “if they take this to court.”

Asked afterwards whether Centra would appeal the BZA’s decision, the company’s owner, David Wagner, told the Citizen that he had no comment. Wagner also has not publicly commented on whether Centra will instead pursue a plan to build industrial warehouses on the Darbytown Road site, which has been approved by the county.

Wagner first brought his proposal for a data center on Darbytown Road to county staff back in January of 2025 – with staff assuring him the site was an appropriate place for a data center, Wagner said – but later that June, Henrico passed a new ordinance that required almost all new data center projects to go through a provisional use permit process. Prior to the ordinance, all data center projects were approved by-right within certain zoning if they adhered to zoning requirements.

After facing significant backlash from residents, Wagner withdrew his PUP application on Oct. 13 and instead decided to pursue a vested rights claim against Henrico County, arguing that Centra had a right to proceed with the data center project because of the county’s previous assurances and because Centra had submitted its proposal before the new ordinance passed. 

Centra’s case has prompted a countywide debate over new data center growth hitting the Henrico area, but Thursday’s decision was solely focused on whether Centra had a vested interest, said Terone Green, who represents the Three Chopt District on the Henrico BZA.

Green said that his decision was largely based on comments from several residents, who argued that because Wagner did not purchase the Darbytown Road site until this past November – a month after he filed his vested rights claim – Centra would have not had a vested right at the time of filing the claim.

“I was impressed with the residents’ argument, which was a logical and compelling argument,” he said. “[Centra] clearly did not own the property at the time.”

Local business leaders: Is Henrico shifting away from being business-friendly?

During the BZA meeting, lawyer Andy Condlin, who represents Centra, cited a June 4 document sent from the county to Centra, which said that the Darbytown site “already has zoning authorization for the proposed use” of a data center. That letter, which was written before the board of supervisors passed the new ordinance, represents the county’s approval, he said.

“It's nothing more than the board rushing an ordinance to keep a data center from being built on this property, despite the assurances of county staff up to the contrary,” said Condlin. “The county encouraged [Centra] to apply and to pursue a data center on this property, told them the rules of the game, then changed the rules of the game, and left my client holding the bag.”

However, Henrico Deputy County Attorney Ryan Murphy said the zoning confirmation letter sent by the county was not a comprehensive approval of Centra’s plans, as the county noted that Centra’s plan of development was still under review at that time. And while Centra contends the county recruited its company for data center development, that notion is a “gross overstatement of what actually occurred,” said Murphy.

“Centra can call the interactions with the county, with the [Economic Development Authority] whatever it wants,” he said. “But Centra obtained no approval, no authorization to proceed with its data center project.”

Several Henrico business leaders and owners also took to the podium to voice concerns about a shift in Henrico County’s historic “pro-business” mindset.

“The county built a reputation for being business-friendly, responsive, and solutions-oriented – which matters,” said Henrico resident Wes Patterson, a director at ARCO Design/Build. “Every reputation carries wait with decision-makers in site selection discussions. It influences where companies ultimately deploy capital and create more jobs.”

Centra made a “good faith” effort to work with the county, said Joe Marchetti, the president of a Henrico-based real estate firm, and the county rebuking Centra’s efforts could erode trust between the locality and businesses.

“I think that based upon the timeline in this process, [Centra] has done everything in good faith,” he said. “And I think it’s important for this body to uphold that piece so that it doesn’t undermine general business confidence in the county.”

But residents argued that Centra did not act in good faith, as the company withdrew their PUP application before a public board of supervisors vote, and waited weeks to announce that they had filed a vested rights claim.

“They showed incredible duplicity, a lack of good faith, and a determination to plead their case before smaller and smaller audiences,” said New Market Village resident Jacklyn Bruce. “All while knowing that residents in Henrico, Goochland, Hanover, and beyond are overwhelmingly against dumping data centers on vibrant neighborhoods.”

Despite the PUP application being withdrawn before the vote, Varina supervisor Tyrone Nelson stated that he could “confidently say the board of supervisors would have denied” the PUP had it gone to a vote. 

Both Nelson and board of supervisors chair Roscoe Cooper (Fairfield District) spoke up at the meeting against Centra’s vested rights appeal.

“For too long, Eastern Henrico has been inundated with the industrial and manufacturing weight of the county,” Cooper said. “And we want to make sure that going forward, we have a say in what happens on our side of town.”

Liana Hardy is the Citizen’s government and education reporter. Support her work and articles like this one by making a contribution to the Citizen.