Council advances operating permit application from cryptocurrency mining company – Niagara Gazette

The Niagara Falls City Council has formally advanced the first completed application for a high-energy use industry operating permit in the city.

On a 5-0 vote Wednesday night, the council sent the application of BlockFusion, a cryptocurrency mining operator, to the Falls Planning Board and the Falls Zoning Board of Appeals for review and consideration. The boards will make recommendations regarding the application and send those back to the City Council for a final determination.

If the council approves the BlockFusion application, it will mark the first high-energy use industry operating permit to be granted under the citys revised zoning code which places new restrictions on those industries, which also include data centers and cannabis cultivation.

BlockFusion ceased operating its facility, on Frontier Avenue, in November after the city notified the company that it was in violation of the new high-energy use industry zoning code amendments. The city also sought a preliminary injunction to block continued mining at two other cryptocurrency mining facilities in the Falls.

While U.S. Bitcoin, which operates a cryptomine on Buffalo Avenue, continued its operations without a permit, BlockFusion immediately filed an application for an operating permit and made changes to comply with the new zoning code requirements. In December, the city asked for some supplemental changes to BlockFusions application and the company said it promptly complied with that request.

An attorney for BlockFusion, William Rossi, has repeatedly said his client wants to do business in the Falls.

Its important to them to do this right, Rossi said. I would be willing to cooperate in anyway possible.

Mayor Robert Restaino has said previously that because of the Bitcoin litigation and because BlockFusion is the first operating permit applicant under the new zoning code regulations, the city has moved very cautiously through the permitting process.

Everybody is kind of watching this, Restaino said. Were wanting to make sure BlockFusion gets across the finish line because it shows our (new) statute works.

U.S. Bitcoin is continuing to operate its facility under a contempt of court order and has racked up fines of over $1 million. However, settlement talks are reportedly underway between the city and U.S. Bitcoin.

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Council advances operating permit application from cryptocurrency mining company - Niagara Gazette

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