Council leaves data-center pre-development option under discussion; no action taken

The council extensively discussed a pre-development proposal for roughly 115–116 acres that a developer wishes to reserve for a data‑center campus. Staff framed two approaches: an industry‑typical option fee (cited by staff around 3% of a hypothetical sale price) that could yield roughly $90,000–$100,000 to the city under a 3% model, versus the developer’s suggested $10,000-per-acre approach.

Staff said the developer requested an initial six‑month no‑cost due‑diligence period to investigate environmental and geotechnical reports; staff indicated a willingness to allow a six‑month no‑cost due diligence period but recommended the city require compensation for an exclusive option beyond due diligence. "They proposed $10,000 an acre and it's 115 116 acres," staff said in the record, noting a 3% option could net the city roughly $90,000–$100,000 under typical market assumptions.

Council and staff also discussed recent infrastructure upgrades: the city completed an interceptor sewer under Highway 169 that is ready for use, though staff said limited retention amounts remain on final payments to the contractor. Councillors raised water‑capacity concerns for a large data campus; staff said the new water treatment plant is expected to break ground late next year and be operational by mid‑ to late‑2028 and that peak‑day demand could strain current capacity until the new plant is online.

Because of open contract terms the council moved the item as "no action" on the agenda to allow council discussion and staff negotiation. Staff said they would return with refined contract language defining the due‑diligence period, exclusivity terms and potential option compensation so the council could take a final vote at a later meeting.