Yukon city council scrutinizes data center project contract terms
Yukon city council members and residents are raising concerns about the contract for a proposed data center project. The primary issue is the lack of
Former and current Yukon city council members, including Shelli Selby and Rodney Zimmerman, have voiced frustrations over the contract for a proposed data center project, specifically questioning the city's ability to terminate the agreement.
According to Mayor Brian Pillmore, a key protection for the city lies in the water agreement, which must be mutually agreeable to both parties for the project to proceed. The water is intended for cooling the data center, not drinking. However, current City Council member Jordan Westfall, who reviewed the land agreement, stated it heavily favors the purchaser. Westfall discovered that the land agreement grants the purchaser the right to cancel or waive any water agreement during due diligence and still move forward with closing, meaning the city might not have an "out" if a water agreement cannot be reached.
City Attorney Roger Reinhart reportedly confirmed that the city does not have an exit clause if a water agreement isn't finalized. The City Manager acknowledged these concerns but noted that the contract includes several checkpoints. Currently, the project is on its second 90-day extension for the water use agreement. Both Selby and Westfall expressed disappointment, with Selby lamenting that she wished she had done more to oppose the project.