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After hours of public testimony, Salem council directs staff to study banning NDAs for data‑center deals
Summary
Following extensive public comment about secrecy around the proposed Verus data center, the City Council voted to direct staff to explore options to prohibit future nondisclosure agreements for data‑center proposals.
Councilor Mickey Varney framed a motion directing staff to study options for prohibiting the city from entering nondisclosure agreements with data‑center applicants after residents said secrecy undermined public trust. "This motion doesn't make any policy change tonight. It simply directs staff to study the issue and bring back options," Varney said during debate.
The motion followed hours of public testimony alleging that a nondisclosure agreement signed in March 2025 kept the proposal confidential until the city released the agreement in July 2026. Testimony urged transparency and recommended the city insist on enforceable, contract‑level protections tied to community benefits. After discussion, the council adopted the motion on a roll call vote (Aye: Matthews, Gwynn, Vang, Nordyke, Varney, Teigen, Nishioka, Mayor Hoy; Brown absent).
City staff acknowledged NDAs can be common in early economic development discussions but told council that the Verus NDA was limited to an exploratory phase and that no commitments were made under it. The motion directs staff to return with options for restricting or prohibiting NDAs specific to data‑center proposals and to recommend changes to practices and any code language needed for transparency.
