The Tyler Zoning Board of Adjustment held a public hearing on Thursday, August 27, 2026, to review an appeal from Barrio Resources LLC regarding a proposed cryptocurrency mining facility on West Erwin Street. The board took no action, focusing instead on whether it possessed the legal authority to hear the appeal, given questions about the timeliness of its filing.
Kyle Kingma, the planning director for the City of Tyler, represented the city, recommending the board dismiss Barrio Energy’s appeal. Kingma stated that Barrio Energy filed its appeal on July 16, 384 days after his administrative decision on July 27, 2025, which classified the proposed operation as "high intensity computing" — an unlisted use requiring a special use permit (SUP) in the M-1 Light Industrial District. State law mandates a 20-day deadline for such appeals, according to Kingma and Steve King, an attorney from the City of Tyler attorney’s office. Mr. King noted that a 2019 amendment by the Texas Legislature established this specific 20-day period, superseding prior guidelines.
Jason Mazingo, representing Barrio Energy, argued that the board retains jurisdiction regardless of the deadline. He contended that the city provided conflicting information about what was permissible for the property, contributing to confusion about filing requirements. Mr. Mazingo pointed to a 2024 communication suggesting a data processing center could be permitted, followed by Mr. Kingma's June 2025 determination requiring a SUP. Subsequently, on July 23, 2025, a city planning department employee, Marina Lopez, sent an email to Barrio Energy's President and CEO, Ivan Pinney, stating that a processing center was a permitted use and did not require a SUP. Mr. Kingma clarified that Ms. Lopez's interaction was not a removal of his authorized classification.
Barrio Energy’s attorney also highlighted that the Unified Development Code (UDC) previously indicated a 30-day deadline, which he argued could mislead an applicant. He asserted that a citizen investing in the community should not need a lawyer to interpret conflicting deadlines between the UDC and state law. Mazingo explained that Barrio Energy had pursued clarification with the city rather than immediately appealing the decision.
Board Member Brent Brevard reiterated the hearing’s purpose was solely to discuss the application for a variance and the board's capacity to address it, not the merits of data mining itself. Board Member Stephen Dinger questioned the applicant’s delay, noting the series of communications.
The Planning and Zoning Commission had previously denied a special use permit for Vulcan Core, a partner in the project, to construct a 12-megawatt Bitcoin mining facility on Barrio Energy’s property on July 7, 2025, due to inconsistencies with the city’s Future Land Use Map. Barrio Energy announced its acquisition of the West Erwin Street property in August 2024, planning a "state-of-the-art" data center for Bitcoin mining.
Several Tyler residents spoke at the hearing, some raising concerns about potential impacts from data centers, others in favor, and one addressing the legal jurisdiction. The board concluded the hearing without making a decision on whether it could legally hear Barrio Energy's appeal.
