Meeting Summary
The Stillwater City Council held its August 19, 2024 meeting, where a significant portion was dedicated to a public hearing regarding the proposed Stillwater Data Center Economic Development Project Plan. This plan involves creating six incentive districts to support the development of a new data center campus, promising substantial investment and job creation. Additionally, the council approved the consent docket, advanced an ordinance for a franchise agreement with OG&E for the data center, and heard the annual report from Lake McMurtry.
Key Decisions & Votes
Consent Docket Approval
02:50The consent docket was approved with the exception of item 4B, which was pulled for further discussion.
Fire Station #2 Budget and Progress
03:00Councilor Clark requested an update on Fire Station #2. The Engineering Director provided details on budget adjustments, cost-saving measures, and construction progress, noting the project is currently at $9.8 million against a $9 million bond, with additional funding sources identified. The item was subsequently approved.
Stillwater Data Center Economic Development Project Plan Public Hearing
16:00A public hearing was held to present the proposed Stillwater Data Center Economic Development Project Plan, including six incentive districts. Special counsel Lisa Harden presented the plan, outlining its economic benefits, job creation, and financial impacts on taxing entities. Public comments raised questions about energy usage, water consumption, and transparency.
Stillwater Regional Airport Title VI Plan
52:00Resolution CC-2024-25, adopting the Stillwater Regional Airport Title VI Plan as required by the FAA for recipients of Federal Financial assistance, was adopted.
Ordinance 3543 (OG&E Franchise for Data Center)
54:00Ordinance 3543, granting a franchise to Oklahoma Gas and Electric Company (OG&E) to provide electricity to the Kipper LLC data center, was advanced to its second reading. An emergency clause was also approved to expedite the process for a November ballot inclusion.
Ordinance 3544 (Stillwater Data Center Economic Development Project Plan Adoption)
57:00Ordinance 3544, approving and adopting the Stillwater Data Center Economic Development Project Plan and supporting incentive districts, was advanced to its second reading. An emergency clause was also approved.
Upcoming Community Events
International Overdose Awareness Day
Proclaimed by Mayor William Joyce to recognize the harm caused by drug overdose and end the stigma of drug-related deaths.
Payne County Free Fair
City of Stillwater departments will share a booth near Emergency Management, fire, and police in the community building.
OSU Football Game Day Park and Ride Shuttle Service
Free parking and shuttle service available from 7th Avenue and Lewis Street (near City Hall), starting 3 hours before games and running every 30 minutes. Full game day guide available at visitstillwater.org.
Financial Matters
Fire Station #2 Budget
The project is currently at $9.8 million, exceeding the $9 million bond amount. Additional funding sources, including OSU road share agreement, rural fire fund, and miscellaneous fire fund, have been identified to cover the difference.
Data Center Project - Pilot Payments
Phase one pilot payments to taxing entities total $867,500 annually, increasing by 1% annually. Stillwater Public Schools will receive over $17 million over 25 years for phase one. Phase two payments follow a similar structure, with larger amounts. Subsequent phases will have formula-based pilot payments.
Data Center Project - Community Betterment Payments
Initial payment to the city for phase one is $132,400, increasing 1% annually. Total community betterment payments for phase one are expected to exceed $3.7 million, and for phase two, $3.9 million.
Data Center Project - Franchise Fees
The city will receive franchise fees of 3% of gross revenues from OG&E's electric power sales to the company, capped at $4.5 million, after which it increases 2% annually. Estimated annual franchise fee per phase is over $2 million.
Data Center Project - City Revenues Budget
Combined revenues from community betterment payments and franchise fees for phases one and two are projected to exceed $11 million over 25 years, allocated for project administration, public improvements, maintenance, public infrastructure, and economic development.
Public Comments
Public comments primarily focused on the proposed data center project. Concerns were raised regarding the franchise agreement with OG&E, energy usage (especially fossil fuels), water consumption, and the transparency of project details. Speakers questioned the specific data on resource usage and the overall financial benefit to the city and schools.
Coming Up
Deadlines
- Second reading of Ordinance 3543 (OG&E Franchise) at a special meeting tomorrow (August 20th) at noon to meet November ballot deadlines.
- Second public hearing for the Data Center Project Plan on September 9th at 5:30 PM.
- Second reading of Ordinance 3544 (Data Center Project Plan Adoption) on September 9th.
Watch For
- Groundbreaking event for the new Stillwater Regional Airport terminal around October 1st.
- Construction progress on Block 34 and Fire Station #2, with vertical construction expected in 30-45 days.
- Final plat proposal for the data center site.
Announcements
- The City of Stillwater is accepting applications for citizen representatives to serve on various committees, including the audit committee and the Stillwater Reinvestment Plan Implementation Policy Committee (downtown TIF #3).
- Reminder for drivers to be mindful of increased pedestrian and cyclist traffic due to schools and universities resuming, especially in school zones and around school buses.
- Demolition of Hangar One and surrounding concrete at Stillwater Regional Airport to begin around September 1st.
- The Surface Transportation Board has permitted the city and ODOT to enter trail use negotiations for the rail-to-trails project, connecting Boomer Lake Park and Couch Park.
- Live construction cameras are available for Block 34 and Fire Station #2, with summer/fall 2025 completion anticipated.
- The City of Stillwater is hiring for full and part-time positions across various departments. Text 'police' or 'fire' to 405-742-8281 for job notifications in those departments. Full list of opportunities at Stillwater.gov/jobs.
Agenda Summary
Proclamation: International Overdose Awareness Day
A proclamation recognizing August 31, 2024, as International Overdose Awareness Day.
Consent Docket
Approval of routine administrative items.
Item 4B: Fire Station #2 Update
Discussion and approval of the budget and progress for Fire Station #2.
Public Hearing: Stillwater Data Center Economic Development Project Plan
First public hearing on the proposed project plan and supporting incentive districts for a new data center campus.
Item 8A: Lake McMurtry Annual Report
Presentation of the annual report by the Executive Director of Lake McMurtry.
Resolution CC-2024-25: Stillwater Regional Airport Title VI Plan
A resolution adopting the Stillwater Regional Airport Title VI Plan as required by the Federal Aviation Administration.
Ordinance 3543: OG&E Franchise for Kipper LLC Data Center
First reading of an ordinance granting a franchise to Oklahoma Gas and Electric Company (OG&E) to provide electricity to the Kipper LLC data center.
Ordinance 3544: Stillwater Data Center Economic Development Project Plan Adoption
First reading of an ordinance approving and adopting the Stillwater Data Center Economic Development Project Plan and supporting incentive districts.