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San Angelo council authorizes 5‑year lease tied to proposed data center, $1M annual rent
Summary
After closed‑session negotiations, the council voted unanimously to authorize a five‑year lease with San Angelo Data Center Campus Power LLC for roughly 347 acres east of US‑67, setting annual rent at $1,000,000 with proceeds credited to any future purchase. The motion follows staff briefing on new ERCOT requirements.
The San Angelo City Council on March 17 authorized the city manager to negotiate and execute a lease with San Angelo Data Center Campus Power LLC for about 347 acres east of U.S. Highway 67, approving a five‑year lease with annual rent set at $1,000,000.
The lease authorization came after an executive‑session review of the property and related negotiations. Legal staff told the council the lease was requested so the prospective tenant could meet new ERCOT/legislative requirements that entities seeking power allocations demonstrate a leasehold or ownership interest in land. Council members emphasized the arrangement is contingent on the underlying purchase contract; if that contract fails, the lease would terminate and any rent applied toward the purchase price if the sale completes.
Mayor Tom Thompson opened the post‑closed‑session motion to authorize the lease and council proceeded with a recorded vote. The motion carried unanimously.
City staff said the council could structure the payment schedule within the lease; during discussion staff recommended a monthly proration of the $1,000,000 annual amount ($83,333.33/month) to avoid recording and reconciliation issues if the tenant ended its leasehold earlier than a full year. Staff emphasized that any rent collected would be credited toward the purchase price if the sale closed.
The council did not take additional financial action at the meeting; staff indicated terms and final contract language would return for the city manager’s signature per the council’s authorization.
