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Board debates scope and legal risk of data‑center moratorium affecting Willow Bend/Google

Little Rock City Board of Directors · July 29, 2026
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Summary

Board members and city staff discussed revised moratorium drafts that range from six to 18 months and whether to exempt an existing Memorandum of Understanding for the Willow Bend/Google site; legal staff warned an 18‑month, citywide moratorium without a narrow justification could invite litigation and damages claims.

Board members discussed competing moratorium drafts and whether the Willow Bend/Google memorandum of understanding (MOU) should be exempt. The mayor explained the sequence of drafts: what appeared on the agenda was a six‑month ordinance with an MOU exemption, but Director Cathy Webb requested changes that led staff to draft alternatives stretching from six to 18 months and removing the MOU exemption in the longer version. "The moratorium states that there would be no application for any permit during that 18 month period," the mayor said when explaining the proposed 18‑month option.

Board members raised concerns about legal exposure. A director said earlier they had been told stopping Google might prompt a lawsuit; the city attorney acknowledged that an 18‑month moratorium that did not exempt the Willow Bend MOU "could lead us to a lawsuit," and said courts generally disfavor broad moratoria unless justified. The attorney summarized the options: the previously proposed six‑month moratorium had an exemption for the MOU; the 18‑month alternative would not exempt Google, which creates greater risk of damages claims if Google demonstrates reliance.