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-Editorial
The developer of a proposed $10 billion artificial intelligence data center has filed a federal civil rights lawsuit against the City of Imperial and several senior city officials, alleging a coordinated campaign to block the project through administrative obstruction, retaliation, and misuse of public resources.
According to a Jan. 11 press release from Imperial Valley Computer Manufacturing LLC, the verified complaint was filed in the U.S. District Court for the Southern District of California (Case No. 3:26-cv-00128). The defendants named in the lawsuit are the City of Imperial, City Council member Katherine Burnworth, City Manager Dennis Morita, City Attorney Kathrine Turner, and Planning Director Othon Mora.
The company alleges city officials launched what it describes as a “bad-faith campaign” to derail a lawfully permitted project that, according to the developer, would have generated 1,688 construction jobs, approximately 100 permanent high-tech positions, and hundreds of indirect jobs. The press release states the project was expected to produce about $72.5 million in one-time sales tax revenue and $28.75 million in recurring annual property tax revenue.
The lawsuit centers on three site plan applications the company submitted to the city for property zoned I-2, Imperial’s most intensive industrial classification. According to the filing, the Imperial Municipal Code requires the city to approve or deny a site plan within 15 days; otherwise, the application is deemed approved by operation of law.
The developer claims it spent millions of dollars on technical studies and multiple revisions, including adding retail frontage along Imperial Avenue at the request of city officials. Despite those changes, the lawsuit alleges the city did not act on the applications within the required timeframe. As a result, the company contends all three site plans were automatically approved under the city’s own code.
After what it characterizes as prolonged delays, Imperial Valley Computer Manufacturing relocated the project to a 75-acre site in unincorporated Imperial County. According to the press release, county officials determined the project was consistent with long-established industrial zoning and could proceed as a ministerial project requiring only administrative confirmation of compliance with applicable codes.
The lawsuit alleges that after the project moved outside city jurisdiction, Imperial officials retaliated by using public funds to pursue litigation against Imperial County, asserting the site required rezoning. The developer describes that action as meritless and intended to obstruct the project despite the county’s determination.
In addition to claims against the city, the complaint alleges a broader conspiracy involving outside organizations and officials associated with the Imperial Irrigation District. The filing includes 43 exhibits that the developer says document communications and coordinated actions intended to delay the project after it shifted to county oversight.
According to the press release, the lawsuit claims the project was delayed for months while other developments were prioritized, costing the developer time and financial resources. The company also alleges that opposition intensified only after the county began processing the project.
The lawsuit further accuses the city of undermining an environmental initiative tied to the project. The developer says it had reached an agreement to purchase reclaimed water, treat it, and release up to 5.25 million gallons per day into the Salton Sea watershed, an effort it claims would have supported dust suppression and salinity reduction.
According to the filing, the city later withdrew from the water arrangement after the developer had already funded the city’s chosen consultant to study the project. The lawsuit also alleges city officials pressured neighboring jurisdictions to revoke service commitments related to the data center.
The complaint seeks damages from the individual city officials, alleging they used their authority to block lawful economic development and violated the company’s civil rights.
“If the public officials responsible for these delays agree to personally cover all of their legal fees and costs incurred in defending their position, and advancing their sham CEQA lawsuit, we will immediately dismiss all claims against the City of Imperial itself, which is being harmed by their actions. As the saying goes: it’s time to Put up or Shut Up,” project developer Sebastian Rucci stated.
