Meeting Summary
The Stillwater City Council held its August 19, 2024, meeting, where a significant portion of the discussion revolved around a proposed data center economic development project. The council also received an annual report from Lake McMurtry and addressed several routine city matters, including an ordinance for a new franchise agreement with OG&E and the adoption of an airport Title VI plan.
Key Decisions & Votes
Consent Docket
02:00:00The consent docket was approved with the exception of item 4B, which was pulled for further discussion.
Fire Station #2 Budget and Progress
02:20:00Councilor Clark requested an update on the fire station budget and construction progress. Candy Starring, Engineering Director, provided details on cost-saving measures and the current construction status, noting the project is still over the initial bond amount but within a revised budget with additional funding sources. The item was approved.
Stillwater Data Center Economic Development Project Plan
29:00:00A public hearing was held to present the proposed Stillwater Data Center Economic Development Project Plan and its supporting incentive districts. Lisa Harden, special counsel for economic development, presented the plan, which aims to facilitate the development of a new data center campus and generate significant revenue for the city and other taxing entities. Public comments raised concerns about energy and water usage, and transparency.
Stillwater Regional Airport Title VI Plan
01:06:00Resolution CC-2024-25, adopting the Stillwater Regional Airport Title VI Plan as required by the Federal Aviation Administration, was adopted.
Ordinance 3543 (OG&E Franchise)
01:08:00Ordinance 3543, granting OG&E a franchise 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.
Ordinance 3544 (Data Center Project Plan Adoption)
01:12:00Ordinance 3544, approving and adopting the Stillwater Data Center Economic Development Project Plan, 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 raise awareness about drug overdose and end stigma.
Lake McMurtry Annual Report
Jil van Eggman presented the annual report, highlighting 605 active annual members, over 42,000 total visits, and successful programs like 'Ride to Thrive' and 'Lights on the Lake'.
Payne County Free Fair
City of Stillwater departments will have a booth in the community building.
OSU Football Game Day Shuttle Service
Free parking and shuttle service from downtown (7th Avenue and Lewis Street) starting 3 hours before games, running every 30 minutes. More info at visitstillwater.org.
Financial Matters
Fire Station #2 Budget
The fire station project is currently over the initial $9 million bond amount, with a total estimated cost of $9.8 million. Additional funding sources include $150,000 from OSU for a road share agreement, rural fire funds, and miscellaneous fire funds.
Data Center Project Pilot Payments
Phase one and two of the data center project are projected to generate significant pilot payments to taxing entities. Stillwater Public Schools will receive over $17 million over 25 years for phase one, Meridian Technology $3.8 million, Payne County $2.5 million, and the Health Department over $500,000. These payments will increase by 1% annually.
Data Center Project Community Betterment Payments
The city will receive community betterment payments from the data center project. Phase one is set at $132,400 annually, increasing by 1% annually, totaling over $3.7 million over 25 years. Phase two is expected to generate over $3.9 million.
Data Center Project Franchise Fees
The city will receive franchise fees of 3% of gross revenues from OG&E's sale of electric power to the data center, up to a cap of $4.5 million, then increasing by 2% annually. Estimated annual franchise fee per phase is over $2 million.
Public Comments
Public comments primarily focused on the proposed data center project. Concerns were raised regarding the transparency of information, potential energy and water usage, and the environmental impact of increased fossil fuel consumption. Questions were also asked about the OG&E franchise agreement and the overall financial benefit to the city.
Coming Up
Deadlines
- September 9th: Second public hearing for the Stillwater Data Center Economic Development Project Plan and vote on Ordinance 3544.
- Tomorrow (August 20th): Special meeting at noon for second reading of Ordinance 3543 (OG&E Franchise) to meet November ballot deadlines.
- Within 60 days of project plan approval: Taxing entities to review and approve the tax incentive agreement.
Watch For
- Final plat proposal for the data center project area.
- Further details on the economic development agreement for the data center project.
- Construction progress on Fire Station #2 and Block 34.
- Groundbreaking event for the new Stillwater Regional Airport terminal around October 1st.
- Progress on the Rail Trails project negotiations with the Surface Transportation Board.
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).
- Back-to-school safety reminder for drivers to be mindful of increased walkers, cyclists, and traffic near campuses, obey school zone speed limits, and stop for school buses.
- Demolition of Hangar One and surrounding concrete at Stillwater Regional Airport to begin around September 1st.
- Live construction cameras are available for Block 34 and Fire Station #2 projects at stillwater.gov/projects.
- The City of Stillwater is hiring for full and part-time positions in various departments. Text 'police' or 'fire' to 457428281 for job notifications. Apply at stillwater.gov/jobs.
Agenda Summary
Proclamation: International Overdose Awareness Day
Mayor William Joyce proclaimed August 31, 2024, as International Overdose Awareness Day in the City of Stillwater.
Consent Docket
Approval of routine administrative items.
Item 4B: Fire Station #2 Budget and Progress
Discussion and update on the budget and construction progress of Fire Station #2.
Public Hearing: Stillwater Data Center Economic Development Project Plan
Presentation and public hearing on the proposed data center project plan and supporting incentive districts.
Lake McMurtry Annual Report
Presentation of the annual report by Jil van Eggman, Executive Director of Lake McMurtry.
Resolution CC-2024-25: Stillwater Regional Airport Title VI Plan
Resolution adopting the Stillwater Regional Airport Title VI Plan as required by the Federal Aviation Administration.
Ordinance 3543: OG&E Franchise for Data Center
First reading of an ordinance granting OG&E a franchise 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.