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Council weighs tighter rules for NDAs and public notice after contentious data‑center debate

City of College Station City Council · October 9, 2025
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Summary

City staff presented options for limiting nondisclosure agreements in development deals, proposing public workshops, a standard NDA template and early council notification. Residents urged stricter rules and at least three weeks’ public notice before a contested agenda item; council asked staff to draft policy language.

City staff told the council on Oct. 9 that existing practice allows staff to negotiate nondisclosure agreements (NDAs) and sign some routine NDAs (for example, utility‑related documents) but that recent controversies prompted a review of policy and practice. Michael Ostrovsky, the city’s chief development officer, presented a menu of options that includes staged public "meet the project" events for large proposals, a standard NDA template, council review of major NDAs tied to economic development, and more time for public notice before council action.

Public speakers said NDAs can undermine trust if citizens do not have time to review materials before a vote. "Transparency isn't a luxury, it's a necessity," resident Jeffrey Hughes said during public comment. Several councilmembers asked staff to require council notification immediately after staff signs any NDA tied to a project that could affect public land or public funds and to build minimum notice windows into NDAs so the public has time to digest materials before action.

Council discussion emphasized balancing the need to be responsive to site prospects (where rapid reactions can matter) against the public’s right to review proposed land deals and incentives. The city manager and staff said many NDA requests are routine and stem from private‑sector competition, but that policy changes could be crafted to preserve responsiveness for some state or site‑selection inquiries while requiring council sign‑off and a minimum public notice period for NDAs that apply to land or city incentives.

Council asked staff to draft policy language to bring back for review that would: require early notification to council when NDAs are executed on economic‑development prospects; include a standard NDA template and minimum public‑notice/lift provisions (council discussion mentioned 2–4 weeks as a practical window); and offer workshop opportunities before final action on major transactions. Staff agreed to return with concrete proposals.