Post by Kathryn Chitwood

1. Fast-Tracking the Regulatory "Head Start" The email exchange from September 18, 2025, exposes how early and smoothly Merkle Standard secured its zoning validation: The Request: Monty Stahl reaches out to the PEND OREILLE, COUNTY OF Community Development Department requesting official confirmation that "Information Processing Facilities" (NAICS code 518210) are a permitted land use for four specific industrial-zoned parcels under Ponderay Real Estate LLC. The Government Handshake: Within just over two hours, the Senior Planner (Andy Huddleston) defers to the Director (Greg Snow) to give the response maximum official weight. Director Greg Snow explicitly confirms the land use is allowed and commends Stahl for "coming to meet with us early in the process." The Shared Victory: Monty Stahl immediately forwards this confirmation to Jessica Garza (Economic Development Director for the Port of Pend Oreille) and Kelly Driver, noting that this clarity is "very helpful... for our business planning." This exchange shows that by mid-September 2025, county officials had already paved the way for the facility's land-use compliance, long before any widespread public discourse or scrutiny regarding a "hyperscale AI data center" took place. 2. The Port Director as a Private Corporate Concierge Jessica Garza’s role goes beyond passive awareness; she is actively serving as a bridge to align private energy and infrastructure developers with Merkle Standard's interests. In October 2025, Grid Reform (an energy infrastructure development firm represented by J.B. Matthews and Charlie Wolfe) reaches out to Garza following a personal connection. The Ask: Grid Reform explicitly requests that Garza facilitate an introduction to " with Allrise" (Director of External Affairs for Merkle Standard/Allrise Capital). The Action: Garza obliges, coordinating introductory meetings and agreeing to "facilitate an email introduction [sp.] as well." Rather than acting strictly as a public servant focusing on broad-based public port initiatives, the Economic Development Director is leveraging her public office to route energy infrastructure developers directly to the private owners of the Usk data center project. 3. Connecting the Dots: A Tailored Ecosystem When you piece these two chapters of correspondence together, a clear operational pattern emerges: Why This Matters to the Public This is a textbook case of "regulatory capture" and siloed governance. While a massive digital transformation like a hyperscale AI data center carries heavy implications for local power grids, water usage, and community zoning, the process was handled with swift, quiet efficiency. Private corporate leadership requested compliance assurances, county planning directors immediately provided them, and the Port's Economic Development Director acted as a private liaison to bring energy partners to the table—all while keeping the broader public looking the other way.