South Bend Common Council votes for banning NDAs with data centers

The South Bend Common Council has taken action to enhance transparency around data center developments within the city by voting in favor of two measures prohibiting non-disclosure agreements (NDAs).

During a September 28 meeting, council members unanimously passed a resolution supporting an executive order signed earlier by Mayor James Mueller. This executive order bans city departments, employees, and board appointees under the mayor's supervision from entering into NDAs or similar confidentiality agreements concerning data center projects. Mayor Mueller stated the order is intended to "remove all doubt" about South Bend's commitment to transparency.

In a separate but related move, the Council gave a favorable recommendation to a new ordinance, co-authored by council members Oliver Davis and Sherry Bolden-Simpson. This ordinance would expand the NDA prohibition to encompass all branches of the city government, including executive, legislative, and the clerk's office. It specifically targets agreements related to data center development, construction, zoning, tax abatement, and the operational aspects of the city's Water Works system, including capacity, pricing, and infrastructure.

Common Council President Canneth Lee emphasized that agreements affecting public access, funds, and services, particularly those involving data centers, must be conducted with the transparency residents expect, especially given public concerns regarding water, energy, infrastructure, and economic development impacts. The ordinance is scheduled for review by the Personnel and Finance Committee on November 9.