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Council votes to direct staff to study banning NDAs for future data‑center proposals
Summary
After heavy public criticism of a year‑long nondisclosure agreement tied to the Verus proposal, Salem City Council unanimously directed staff to explore options to prohibit city NDAs for data centers and to return with recommendations.
Following hours of testimony focused on secrecy and governance, Councilor Varney moved that staff be directed to explore options for prohibiting the city from entering nondisclosure agreements with entities seeking to develop data centers in Salem. The motion passed on a roll‑call vote.
Varney framed the measure as a transparency step: "Residents deserve transparency and a voice in decisions, especially ones that have such an impact on our community," she said. Supporters in the audience and several council members emphasized that NDAs can be used appropriately but said the public expects stronger guardrails for projects with major environmental or fiscal consequences.
Staff had earlier described NDAs as a common exploratory tool in economic development but stressed that no commitments or negotiated terms occurred under the city’s NDA. The council’s motion does not change city code tonight; it directs staff to report options for limiting or prohibiting NDAs for data‑center proposals.
