City Council - Special Meeting

I was tickled to death at about 7.30 when I stepped outside. I had my grandkids out at the lake when it started sprinkling. They were like, it's raining.

I'm like, you're already wet.

Let me know when you're ready.

You check this mic, make sure it's working. Good to go? All right, good afternoon, everyone. The city of Clarksville has called for a public hearing on the issuance of bonds for Hatchbo and Subreform SF-ARC-1. All public comments will be taken into consideration. The rules for this meeting are all speakers must sign in, speak plainly, give their names and address as well as the business they represent. All comments should be addressed to the hearing body. Comments should be relevant to the topic. It should not be of a personal nature. Please avoid repetitive comments. If there are a large number of speakers, including many who are part of a group organization, please ask for a rep to speak on behalf of the group. Unruly behavior such as booing, hissing, harassing remarks are prohibited. That's all. The public comment period is considered open at this time. Please raise your hand to be recognized. Yes ma'am.

My name is Sherry Broderick. I live on County Road 3411. And I represent only myself, no company. I'd like to express my support for the new business items ABC and especially AB&C. I've been very active and committed to educating myself about this project, its risks, environmental impacts, and financial impacts. My husband visited Pryor, Oklahoma to gain an understanding of such a project in a community, and I myself researched the overall impact of such projects in Pryor and in Loudoun County, Virginia. The benefits of the communities were undeniable and significant. I'm satisfied that this project will mitigate any and all environmental impacts as the design of this project addressed them all. And I was here for every one of the question and answer sessions. I'm ecstatic about the financial benefits, not only to the city and the county, but even more so to our schools, where 70% of our children live in households below the poverty level. That took my breath away when I read that. so when i studied prior in loudon virginia i saw the benefits of a well-funded school that offered kids new opportunities i saw lower taxes for citizens increased infrastructure parks roads etc i saw increased pay for teachers city workers and police and all of that money that you pay those people come back into your community and back into the restaurants and we grow we need to all understand that to get anything more in life no matter what we have to give up something you must give up something to get more than what you have this project brings in quantum levels more benefits than what we give up and the children of the community will thank us for our sacrifices that we make to give them a better life am i up okay thank you well you weren't but something's going on and we have a technical well i wanted to finish my last sentence In closing, I look forward to teacher pay increases, new training opportunities for our schools, lower taxes, flourishing Clarksville, where the majority of households are given the opportunity to lift themselves against the poverty level. I want to see that more than I want to see anything. And I'm an old person. I've taken care of my retirement. I care about seeing the families. Lastly, city council members, mayor, I want to thank you all for working for Clarksville. I know you get a lot of stuff. I know you do. Been there, done that. I encourage you to vote yes on these projects because the fear never accomplished anything. The fearless lead the way for the fearful for a better future. Thank you.

Thank you.

Okay, is there another speaker? She meets you to the point. I'll come back to you, she meets you.

My name is Becky Kraft. I live at 165 Mountain View Circle in Clarksville. And I was here last meeting. And if you recall, I asked you to count the cost and to count it before we move in. Because once you approve these bonds, we're committing to not only phase one, but two and three as well. It's an enormous project. 1000 passed on may 11th of 26 declaring an emergency at states to protect the public health safety and welfare of the citizens of clarksville i am asking you to pause or table the passing of the revenue bonds until you have stayed true to your words that first you will pass regulations related to data centers that reflect you truly want to protect the public I too have looked at many things and Cheyenne, Wyoming had in their fill and flush process at the very beginning had a virus discovered and it took them months to clean and clear that out of their reclaimed water project because they dumped into that. I mean, counting the cost to me is setting up a regulation first that says you can do this, but you can't do this. You can have a closed-loop system, but you can't dump it because it has things in it into our system. You have to have it removed and that type of a thing. I have that paper if anybody wants it. Another example of a regulation, excuse me, it's moved, is to have limits on the amount of noise. I cannot fathom what 40 gas fired turbine engines produce, but if there is a limit, that's already in regulations because you've waited and paused to think about and protect the health, safety and welfare of the citizens of Clarksville. I'll feel better about this. A lot of people will feel better if we know that you have done XYZ as part of things that have passed and been regulated. I would like to see that the data center sponsors training for our volunteer fire department, volunteer fire department that's gonna face things that I don't believe a volunteer maybe has been trained to do to face the chemicals or a 2000 degree, which I also have a paper on that fire from lithium batteries that that melts aluminum. I can't even fathom that. So I'm not asking that you just pause them because we have willy-nilly concerns. They're big concerns. So to pause and set those things in place. Additionally, in Act 9, Section B4, it states that there's a referendum period of 30 days. The Constitution of the state of Arkansas requires that the governing body exercise a referendum period This period is to allow time for a petition if desired by the general public requiring the issue to be subjected to a general election. This period is normally 30 days in the case of a municipal issue. And my final thing is, are we able to ask for that? I am asking the city attorney. I don't even know because when I called offices connected, I couldn't get the answer from who I talked to about when does that 30 days from what that's not online. So thank you for your time. And as I said, I have copies of papers if somebody wants them.

thank you ma'am thank you yes sir good afternoon i'm ronnie terry from haggarville i don't live in clarksville but i have concerns about this data center i have concerns about the amount of electricity that it uses or will use also about the amount of wastewater that it will generate. I heard at the July the 13th meeting that they're gonna generate their own electricity, but Clarksville is going to provide electricity when the data center can't provide its own electricity. And that concerns me right there, that that's gonna cause brownouts and issues of that nature. The amount of wastewater. I saw the write up in the paper about there's already problems with the wastewater system that's in place. My fear is that the city residents of Clarksville we'll be picking up the tab on most of that. And it shouldn't be that way. Like I say, the amount of electricity that this data center will probably use will be somewhere between the amount that 500 to 700,000 regular households would use. And that's a lot of electricity. That's more residents than we have in Johnson, Pope, franklin right and you know that's that's that's a major concern i don't want to see a brown out here because of that uh there's concerns about it being so close to the hospital and the nursing home i don't believe any of those issues that i've mentioned has been addressed before the approval was already made i believe that the mayor and the and the city council should have been having hearings about this before they jumped in the boat to go ahead and approve this. That's my personal feelings on it. If you look at the internet, there's hundreds of comments that's negative about data centers. People don't wanna live next to them. There's a lot of issues with noise or a lot of issues with light pollution And I haven't heard anybody address any of those concerns that I've mentioned for this, for this area. So that's, that's my comments. Thank you, sir.

Yes, sir. He beat you. I'll get your name. He was quick to do the drawing. I'm going to be very short.

My name is Mike Powell. My wife and I, and my son's estate own a motion fuels and the wreck canoe out at Palmer and East main street. I have a couple of very simple observations that I thought perhaps should be said. My first observation is that the data center has already been good for our business. We are selling more fuel. We're selling fuel to subcontractors and to the employees who work out there. We're also seeing a number of the workers out there eating in our restaurant every day. So it's already been good for our business. And I think that will continue. The second observation I want to make is that I have met a number of the people, especially those who work for Utah, which is the first big contractor that's been in here. And I will tell you, I think they're good people. They are skilled people. Many of them are heavy equipment operators or construction superintendent type people. They're family people. They come from other towns. Some of them come from Mississippi. I met one the other day from Tennessee. They tend to work 14 days on and four days off. They go home on those four days. And so, uh, they're courteous to our people, their regular customers, they're friendly, they pay their bills. And so I just wanted to tell you that I think they're, they're good people. And I wanted to say that we're very pleased to have them as our customers.

Thank you, sir. John Vaughn, can you all hear us now?

Yes, sir, we can hear you now.

OK, thank you. Yes, ma'am. You might want to adjust that down a little bit.

Tony, mic, raise it up.

Boo. Judy Penny, 12 White Drive. I am opposed to this bond and the next bond and probably whatever you got attached to it. I'm especially opposed to putting things through as an emergency in order to ensure the peace, health, safety, and welfare of the citizens because the peace health, safety and welfare of the citizens has not been addressed as a concern. And I have looked up things about data centers and it increases the miscarriage rate, the high voltage power lines increase childhood leukemia. Heart disease, asthma, lots of health related issues go with data center. Okay, what's next? How many of you would do business with an entity that would not even tell you their name? Is this Google Meta, some sort of government facility that they're doing we don't know what? And I feel like that's what's happening here. The Red Sea Group, which is a group of billionaire international land developers with headquarters in Saudi Arabia, sent Server Farm out to find sites to develop data centers, and they found Arkansas. And apparently Arkansas is for sale now, the natural state. and the legislature has priced it cheap. There have been conflicting statements, misleading statements, amended statements. The attempt to answer questions uses a lot of words, but in the end, the answer comes out that's confidential. We don't know yet. The state decides that. Somebody else does that. But the number one statement is they're going to give us money. I believe that most of us want what is best for Clarksville. We just disagree on what that is. You six council members do not have to make this decision on your own. You can refer an ordinance to the people and let us vote.

Ma'am, go back in time. What was the name that you said that put Server Farm? Red Sea Group. Red Sea Group is directing Server Farm.

Red Sea Group is the organization. Server Farms was owned by them. Recently, some Canadians have obtained 49% of Server Farms. Which probably sounds better in North America.

So Server Farm is Red Sea Group or Red Sea Group is Server Farm? I'm just trying to get it straight from what you said.

Red Sea Group is the head organization. They own Server Farm.

They own Server Farm.

Until recently where some Canadian group obtained 49% of Server Farm.

And then the Canadian group bought Server Farm?

No.

Or bought Red Sea Group?

No.

Bought 49% of what?

Server Farm. Yeah.

Who said that? so so i got it straight red sea group on server farm a canadian group bought 49 percent of service right correct okay gotcha thank you man could i ask a question where did you get your information about miscarriages and all that stuff internet uh there is several studies one of them is the national institute of health

Thank you, Ms. Bing. Thank you.

Somebody I know. Yes, sir.

My name's Harv Taylor. I'm about a fifth generation citizen of Johnson County. A lot of you know me. A lot of you in the room know me. Uh, when I first heard about data center about two years ago, the mayor will be the first one to tell you. He was the first one I started directing my questions to because, and I've been right up until the last few days, I've been neutral on this thing because as I've already expressed to you, I'm not about to. be in favor of something that's going to mess up our quality of life here in Johnson County. It's all very special to us, and we don't want it messed up. And I just want to congratulate all of you and thank all of you, the council, the attorneys, all the staff, the utility commission. I mean, you guys have put in a lot of hard work, and we need to give you a round of applause to thank you. And you really have. And, you know, public officials don't get enough. Thanks. They did hear the negative. And, you know, I come at you in something they don't agree. Well, but getting more on point about this data center project, does it make sense to anyone here that these people that are that are server farm and they're and they're related groups, would they come in here and invest the millions and millions of dollars that they've already invested and then put the first phase right there adjacent to our hospital and our health and rehab, and then wrap it on around and down to the interstate, down to the sweet potato plant, and then run the risk of having things blow up on them due to whatever, too much noise, too much light pollution, electric rates, water consumption. And I know all these things have already been addressed. And I've been following this closely. I've got a file about that thick, about data center, about this data center, and about ones all over the country. Now, data centers, as many of us know, have been around for years. And yes, many of these complaints that we hear from across the country, And some states are now starting to have moratoriums on data centers until more is known. And I think that's been our big problem here. We just haven't known enough soon enough. And I understand. In my working life, I've been in commercial and industrial development. I've been involved. act nine type financing. That's the way you do it. That goes back to that act of 19, was it 1960? Act nine. And I could go into, if anybody ever wants to question me about any of that, just feel free to do so. But if I were, if I didn't think this was good, I'd be standing up here talking in opposition. So what I want to do, I'd like to see you all pass this, and then let's work together. This community, working together with Server Farm, I think Server Farm has reached out to us. They want to be a part of this community, and they will be. And so my time's up, but I want to get out of here. But I just wanted to express my support to all of you who have been a part of this. Nothing is perfect. There'll be some bumps in the road, no doubt. but i think the vehicles are here the the means are here to resolve problems as they as they then as they arise and they probably do one other thing i want to point out hold on let me do something okay council we've been taking the vote of affirmation to extend this time thank you councilman and i'm going to say one more thing and i'm going to sit down and shut up but i appreciate the opportunity really And you all know I've stayed out of this thing totally because I don't have anything to gain. The only property I own is a property my wife and I live on out north of town and the little uh, building down on the West main where I've got my office. I've had it since 92. I bought that and renovated it. And that's just, that's all I've got. So I don't have anything to gain personally. So I'm totally, I think I'm totally impartial, totally independent. So, uh, um, I just want to express my sentiments to you. And like I said, once again, if I was not in favor of it, I'd be speaking as strongly against as I am for it. And, uh, The other thing that comes to mind that I want to make a point of, this is phase one, right? This is going to cover the 400 and something acres, right? This is phase one. Subsequent phases will have similar hearings and agreements for community improvement and all that. So if any of us, if there are things about what happens here in phase one, If we think, well, things can be tweaked and improved upon, I think we can all work together. The community and server farm can work together to get things worked out because they've already purchased enough land down the way that this is probably going to be a years-long process, and it should. So we can just all work together. And like John Vaughn said, back at that meeting of the 13th. He'd like to see this become the blueprint of how communities and server farm or other data center developers work. I'd like to see us join together and be that model for others to follow. And why not let us right here, Clarksville, Johnson County, be the leaders in this kind of thing instead of all this kind of negativism that we hear about data centers from across the country.

Thank you all very much.

I appreciate the extended time. Thank you very much.

Mike, I'm going to ask you and Drew, if you, I know you were taking notes, you want to respond to some of these things to the council. But you've got to come to the podium and state who you are. And if you want to, you don't have to.

I just, Mike LaParte, Surfer Farm. I guess, is there any questions that you guys have for the city council?

I have a question. Oh, Ms. Kelly, did you say something? Oh. Very much and ever. That's okay. That's my address. I'm stuck in this gray area. I don't actually oppose this development. Kelly Miller, 161 Private Road 3531 up here in Clarksville.

I'm stuck in this middle zone where I don't oppose this development, but I have seen so many problems with it. I've read the history of this. In July of 2024, we're promised 100 feet of tree buffer by Vaughn. And what we wind up with is 95% development, a gift, our IT zone for a server farm. There's no noise ordinance. There's no balance for the community in this. And I still think Maybe there isn't. And I hope when you guys are looking at this, when you are looking at potential clawbacks and you are looking at enforcement provisions and you are looking at 30-year timelines, that you read every word in that and you are very, very comfortable because we've already seen small things not matter so much. I'm hoping the big things do.

Thank you. Thank you, Kelly.

All right, Rob. Addressing. Hold on, hold on.

There's several more. There's several more. Okay, all right. Okay.

Y'all got to hold your hands up.

I can't see you.

Some of you, first of all, some of you signed up for the ordinance reading. Some of you signed up for the public hearing. There's not that many signed up for the public hearing, so I'm just going by crowd. Okay. What's your name?

I'm getting ready to tell you. My name is Glenda Crutchfield. I'm a registered voter in Clarksville, Johnson County. I live on Big Danger Road, and I want to encourage the council to vote yes for these bonds. We hear a lot of scare tactics. We hear that no one in Clarksville wants this. People want it. And we appreciate y'all voting for it. These things that medical issues that might happen. 40 years ago, we heard it about nuclear plants. You work there, you just glow in the dark. I retired. I don't glow in the dark. You know, you can hear things that doesn't make them true. And I appreciate y'all's vote. Yes.

Thank you, ma'am. Who's next? Yes, ma'am.

Ready?

I am here as a concerned citizen to urge you to vote no on these bond ordinances tonight. I've carefully reviewed both proposed ordinances and have prepared a handout for each of you that cites the actual language from those documents. Yes, the bonds are special limited obligations. The lawyer is correct that bondholders cannot force the city to raise taxes to repay this debt. That's not the issue. The issue is what these ordinances actually require the city to do. Under Section 5, the city takes legal ownership of the land, the buildings, the equipment, and the fixtures, then leases them back to the companies. If the company walks away, goes bankrupt, or leaves problems behind, the city is the owner left holding the property, along with any cleanup costs, legal bills, and other expenses. Next, the normal property taxes based on the value of this project are being removed. Instead, the companies will make negotiated payments in lieu of taxes. Those payments are only a contract. If they pay less than expected or stop paying, the city, the county, and the schools lose that revenue with no automatic replacement. We are giving up regular property taxes on a project of this size for whatever payments are later negotiated. The scale is enormous, up to 50 billion and 5 billion. Even though these bonds are not general debt, rating agencies and future lenders still look at ownership risks, the size of the deals and potential disputes. That attention can hurt Clarksville's credit rating and raise the interest rates we pay later on loans for water, sewer and roads. No lawyer in this room can tell you for certain what this will do to the city's credit rating or how much interest we will pay on future borrowings. Those costs are real unknown right now and will fall on the people who live here. The detailed protective terms, indemnities, security, pilot amounts, default remedies, and environmental protections are not locked in tonight. The ordinances give the mayor authority to complete those documents later with such changes as shall be approved. Approving the framework first and hoping the fine print protects us is not prudent for a small city. I'm not against economic development. I'm against accepting ownership risk, giving up regular property taxes for uncertain payments, and exposing our future borrowing costs to unknown damage, especially when the safeguards are still incomplete. Vote no tonight. Demand the full lease, pilot, and related agreements with clear city protections before any further action. Protect the city's balance sheet and the taxpayers who live here. The handout I provided cites the specific sections that back up these concerns. Please review it before voting. Thank you. My name is Heather Forsard, F-R-E-S-A-R-D. I live in Clarksville. Thank you.

We had others.

Good evening. I'm Debbie Hobbs. Address is 3957 County Road 3451 in Clarksville. I have so many questions. I probably won't get to them all. And since it's kind of blurred as to which we can speak to now and which is later, I may... I may get confused on that, so please forgive me for that if I do. Okay, and first I want to address about the concerns and the fears. When people drive by and witness what's going on in our community where once were trees and now it's a dust farm and equipment and all that, yes, it causes fear and concerns. And it's further increased when there are so many unknowns still. I mean, the rapid development of data centers across our country is causing a lot of concerns. People that profit from them, obviously they are for them. The residents who are left behind once the quote dust settles, they are against it. And I've heard people laugh to me and say, where do you get your information from the internet? We're not against technology. We are not against the internet. However, how much information do we need? Do we need AI telling our kids to go ahead and kill yourself? I mean, we don't even know who the end user is. Do you know, you council members who are making the decision? And so you do hear rumors because when we held our public meeting, only two of the council members were brave enough to come and answer questions submitted by the citizens you have been elected to represent. So, you know, they talk about the jobs being filled, and that may not be relevant to this topic if someone keeps going. But what are the company's minimum investment commitments, and are they legally enforceable? What is the estimated amount of property, well, this is probably more on the pilot program, so will there be another comment on that later? Or should I go and ask now?

Did you sign up on the other one?

I think I did, but it's a little bit confusing, too, on the sign-up sheets.

Yeah, you did. You're good.

Okay. All right. So I can address it now then? Either way. Okay. Okay. So what is the estimated amount of property tax revenue that will be foregone over the 30-year period? And speaking of 30-year periods, most of you probably know who Mark Cuban is. He recently, I think it was a podcast that he did where he said technology is is developing so rapidly he does not think these same data center will be exist in existence in 30 years and then back to i think was heather's comment then what happens to the buildings does it become another old johnson county hospital and sits there as an eyesore because it's too expensive to demolish what happens to all the recovery of that land am i done well let me do this canceled she's not quite done yet y'all want to extend the time yes yes thank you so much for that let me reset it yes ma'am go ahead okay um are there reporting auditing and compliance requirements to ensure the company fulfills its commitments throughout the life of the agreement Has the Arkansas Economic Development Commission approved or preliminary approved or reviewed the project? And why $55 billion for a reported $6.2 billion project? Let's see. And to other people's points, what we do know, the evidence we do have is that 71% of Americans are opposed to these. also where they are already, the residents there are reporting evidence that they did not do what they were supposed to do and they are causing harm. So I guess I think that pretty much covers, unless you want to talk about the act. of 1960 that Mr. Taylor referred to. And this act, it essentially chooses winners and losers when it comes to development because they use taxpayer dollars to give to the big companies, whereas those who have small businesses, we get to keep paying the taxes. So I just would like to second whoever, I think it was Ms. Kraft that asked, a decision this monumental and now obviously there's people on both sides of it why not refer it to the voters and then make your points to them on whichever side you are and let them decide because once they're there I mean, it will forever change Clarksville. And if you had come to the public hearing when Dr. Cho opened it, because there weren't elected officials when she first began, she questioned the audience, over 125 people. From what I've seen in Clarksville, to get that many people to turn out for a meeting is pretty big. But most of the comments said, we like it because of the nature. We like it because the fishing and all these other, they didn't say we like it because of the money that's here. There are more things, or there are things more valuable than the dollars. So I hope you will consider that. Thank you.

Thank you. Are there others? Yes, sir.

My name is Michael Lunsford. I live in Clarksville. I run Hawks Off-Road and I also run a race program for veterans. I'm going to urge you to vote yes on this bond program. Server Farm has already committed money to upgrading our infrastructure with CCU, with sewer, with everything. They also, they're committed to investing into the school with everything with our community. We can't, why wouldn't we say yes? Why wouldn't we, you know, we're taking people that has came in that wants to have everything to do with our community and helping this community. And we're sitting there and saying, we don't want anything to do with you leave. We'd rather drown. And to me, that's ridiculous. And no, I don't know these people. I've never met them before in my life. But I know how to read, and I know how to do research. And that's what I've done. I urge you to vote yes. Thank you, sir.

Any others? Mike, Drew, any of you guys want to address any of this? I know you and Rob had a question. Maybe a good time to ask it.

i had a question regarding what judy had said about red sea group on is i i've never heard of red sea group is sarah on the call right now in zoom who sarah is there a sarah or kurt kurt jean

Clay and Jason didn't show up. Neither did you.

Or Jeannie.

No, there's Mike, John, Jeannie, Elizabeth. No. Can you guys hear us online?

Yes, we can hear you.

Do you hear what Mike's asking?

Jeannie, you want to take that one? She stepped out for dinner.

Jeannie, are you there?

Yeah, I'm here.

Did you hear did you hear the the question regarding can you give just a little bit of history to the Red Sea Group server farm and Manulife? Just 90 seconds.

I can't for you. You give your you give your.

That that is the question that one of the council members.

can i add okay can you give me a few minutes to answer it yeah good bring you some other stuff that you do you have anything else uh well i i wanted to uh address uh let's see where my notes were um somebody said about the uh 100 foot buffer i apologize i thought i wrote it down and put a highlight on it yeah we can speak to that a little bit i i just wanted to to ask oh it was uh kelly miller uh you know i understand this project is kind of in its infancy how can we even discuss a hundred foot buffer if we don't have the project complete yet because the way i understand it our new i.t

zoning we it's 95 percent or five percent is to be green space so i think we can almost separate the it zoning and i zoning and the different things in the 100 foot buffer the 100 foot buffer was a requirement along palmer road right and that's that is there i don't know if you talk and i mean i haven't or poplar sorry i haven't actually got to take measure out but i bet these two gentlemen have

Well, like I said, that's that was my question, because I thought that was part of the deal. Plus, again, the green space, we can't have a green space when we don't have it built yet. That's right. I just wanted to make sure that I didn't misunderstand something.

No.

OK.

Thank you, sir. That it. Yep.

If we can't wait for Jeannie, come back and ask any other questions and we get a response on that.

I want to address a couple of things that this gentleman said was talking about. I saw Abner on there. He was just there.

Yeah, I'm here. I'm here.

Mike, you need to go. Will you ask that question again, please?

Yeah. Hey, Abner. It was just asked about the history of Red Sea Group, Server Farm, and Manulife. If you can just give a quick one-minute rundown on the history there. Thank you for joining.

is our company, my family company. It does hospitality, mostly hotels in London. It's called Park Plaza Hotels. We have 17 hotels in London, Amsterdam, so mostly in hospitality business. I came here from college and after college started a real estate business that developed into Server Farm, which I run. And Server Farm has been doing technology building since 99. And so we're not adjourned to come lately to this business. We own a lot of them, operate a lot of them. We've done a deal with many like, we sold them 70% of Server Farm in 2023. It helped us get better financial, better financial standing and more so we can do bigger deals. We saw this deal growing. They are a Canadian insurance company. You can basically nothing but know long-standing actually John Hancock is they bought that as well and this is this is who we are we have data centers all over the US Europe with their centers in in Israel we have no complaints any neighbors any of these data centers I would love if you have an opportunity I would love for you to come and visit any of them we build all of them around me So we are there for many, many years. Our other businesses are hotels. I don't run the hotels. I run the data center part. But we are in the hospitality business, and we have a lot of people that work for us. It's primarily a people business. All business, by the way, is primarily a people business. Even computing business, at the end of the day, there's us, there's Mike. It's all about people. We've really never had a deal where any of these things that you're talking about happened. We haven't offended anything. We haven't left. There's no skeletons for more than 60 years ever that we're left around and left anybody standing with a problem. So we are in the business of developing and creating opportunity for our employees, for our neighbors, and trying to do We have a long reputation of doing that, so there you go.

Thanks, Abner. Appreciate it.

Thank you.

I'd just like to add, too, I mean, how many data center companies do you know that are founder-led? Abner's available. I can pick up the phone and call that guy anytime I want. I think that's saying something. Abner.

Thank you.

You're not a Chinese company, are you?

No, no, not yet. Thank you, sir.

all right folks with that the public comment period will close at this point and the public hearing will be closed at this point thank you all let's take a little short break get a drink of water No, no, no

We live in a country that is the greatest in the world. Thank you for our city, for everyone that has a part in it. We just pray that we look to you for guidance and direction in this meeting tonight. In Jesus' name, amen.

Baker? Here. Bradley? Here.

King?

Here.

Reisinger?

Here.

Crystal Thompson? Here. Robert Thompson?

Here. On the agenda, we need to add those two things at the bottom. Under old business was the resolution from the last meeting, and then under new business, Crystal, is that contract from the PR firm.

I move.

Second. Second. Ms. Lisa.

Bradley. Yes. King.

Yes.

Reisinger. Yes. Crystal Thompson. Yes. Robert Thompson. Yes. Baker.

Yes.

Lisa, do we start with the, it's going to be under old business. Let's start with the resolutions. That's right.

Yes, unfinished business.

Could you read that one?

Mr. Mayor, may I interrupt before we should start? Do we need to make a motion to untable that?

No. Okay. You kind of did when you approved this agenda. Okay. The addition of it.

A resolution of the City Council of Clarksville, Arkansas, certifying local government endorsement of Hatchbo LLC to participate in the tax back programs is authorized by Section 14-20. 4-2706D of the Consolidated Incentive Act of 2003. Whereas in order to be considered for participation in the tax back program, the local government must endorse a business to participate in the tax back program. And whereas the local government must authorize the refund of local sales and use taxes as provided in the Consolidated Incentive Act of 2003. And whereas said endorsement must be made on the specific form available from the Arkansas Economic Development Commission, And whereas Hatchbo LLC, his facilities are to be located at 101 Big Danger Road, Clarksville, Arkansas, 72830, has sought to participate in the program, and more specifically, has requested benefits occurring from acquisition, construction, and equipping of the specified facilities. And whereas Hatchbo LLC has agreed to furnish the local government all necessary information for compliance, now therefore be it resolved by the City Council of Clarksville, Arkansas, that Section 1, Hatchbo LLC, be endorsed by the City Council of Clarksville for benefits from the sales and use tax refunds as provided by Section 15-4-2706D of the Consolidated Incentive Act of 2003. Section 2, the Department of Finance and Administration is authorized to refund local sales and use taxes to Hatchbo LLC. Section 3, this resolution is subject to effect immediately.

I'll make a motion to pass the resolution.

Is there a second? Second. Ms. Lisa, can you call the roll, please?

King?

Yes.

Brassinger? Yes. Crystal Thompson? Yes. Robert Thompson?

Yes.

Baker? Yes. Bradley?

Yes.

Thank you, council. Under B is going to be the SF ARC 1. Ms. Lisa, could you read that one?

A resolution of the City Council of Clarksville, Arkansas, certifying local government endorsement of SFARK1 LLC to participate in the tax back program is authorized by section 15-4-2706D of the Consolidated Incentive Act of 2003. whereas in order to be considered for participation in the tax back program, the local government must endorse a business to participate in the tax back program, and whereas the local government must authorize the refund of local sales and use taxes as provided in the Consolidated Incentive Act of 2003, and whereas said endorsement must be made on the specific form available from the Arkansas Economic Development Commission, and whereas SFARK1 LLC, whose facilities are located, to be located at 101 Big Danger Road, Clarksville, Arkansas, 72830, As such, participate in the program, and more specifically, has requested benefits accruing from acquisition, construction, and equipping of the specific facilities. And whereas SFARK1 LLC has agreed to furnish the local government all necessary information for compliance, now therefore be it resolved by the City of Clarksville, Arkansas, City Council of Clarksville, Arkansas, that Section 1 SFARK1 LLC be endorsed by the City Council of Clarksville for benefits from the sales and use tax refunds is provided by Section 15-4-2706D, Consolidated Incentive Act of 2003. Section 2, the Department of Finance and Administration is authorized to refund local sale and use taxes to SFA1 LLC. Section 3, this resolution shall take effect immediately.

Thank you, Lisa. Councilman, questions, comments, or is there a motion?

a commotion when we approve the resolution. Second. Second.

Ms. Lisa?

Rysinger?

Yes.

Crystal Thompson? Yes. Robert Thompson?

Yes.

Baker? Yes. Bradley? Yes. King?

Yes.

Thank you, Council.

6A is going to be, or 4A is going to be, Ordinance Pilot Program for Hatchville, L.L. City. Ms. Lisa, when you're ready, get your drink. I can make Gordon read it.

I'll let you read the next one.

An ordinance authorizing the issuance of taxable industrial development revenue bond series 2026 under the authority of Act 9 of 1960 is amended for the purpose of securing and developing industry within the city, authorizing the execution and delivery of a bond purchase agreement, providing for the sale of the bond, authorizing the execution and delivery of a trust indenture, Securing the bond, authorizing the execution and delivery of a lease agreement between the City as lessor and Hatchpo LLC as lessee, authorizing the execution and delivery of an agreement for payments and live taxes, authorizing the execution and delivery of other documents relating to the issuance of the bond, and prescribing other matters relating thereto. Whereas the City of Clarksville, Arkansas, the City is authorized under the provisions of the Municipalities and Counties Industrial Development Revenue Bond Law. Arkansas Code annotated sections 14-164-01 at SEC the act to own, acquire, construct, reconstruct, improve, equip, and lease facilities to secure and develop industry and to assist in the financing thereof by the issuance of bonds payable from the revenues derived from such facilities. And whereas the necessary arrangements have been made with Hatchbo LLC, a Delaware limited liability company, the company, to provide the financing of an industrial project consisting of the acquisition and installation of certain items of machinery, equipment, and other tangible personal property and maintenance and repair parts relating thereto and certain fixtures and other real property improvements to be utilized for data center operations to be located on approximately 205 acres of land located at 101 Big Danger Road within the corporate boundaries of the city, collectively the project. And whereas permanent financing of the project costs necessary costs and expenditures incidental thereto and the cost of the issuance of bonds is being furnished by the city, pursuant to the act through the issuance of taxable industrial development revenue bond, Hatchbo LLC project series 2006, and the principal amount of not to exceed $50 billion, the bond, and whereas an open public hearing on the question of the issuance of the bond was held before the city council on July 30th, 2026, following publication of notice thereof in the Johnson County graphic on July 15th, 2026, and whereas the bond will be issued pursuant to the terms and provisions of a trust indenture to be dated as of the date of delivery of the bond the indenture between the city and the financial institution with corporate trust powers mutually acceptable to the company and the company is trustee the trustee and whereas the necessary arrangements have been made by the city to lease the project to the company pursuant to the terms of a lease agreement to be dated as of the date of delivery of the bond the lease agreement now therefore be it ordained by the city council of the city of clarksville arkansas that section one the city council makes the following findings and determinations A, based on information compiled and released by the Arkansas Division of Workforce Services, unemployment in Johnson County during May of 26 averaged 5.0%. Installation operation of the project is expected to provide additional employment and other benefits to residents of the city. B, the company currently intends to utilize the project in its data center operations business. C, the company's presence within the city is expected to be an important factor in the economic well-being and employment base for the city and its inhabitants. D, the bond will not constitute a general obligation of the city within the meaning of any constitutional or statutory limitation. There will be a special limited obligation of the city as provided in the act. The principal interest on which shall be payable solely from the revenues or other receipts, funds, monies, and property pledged therefore under the indenture Section 2, there is hereby authorized and directed the issuance from time to time of the bond and the sale thereof to an affiliate of the company, the purchaser, pursuant to the terms and provisions of the bond purchase agreement. To be dated is the date of delivery of the bond, the bond purchase agreement, which bond purchase agreement is specifically approved in Section 3 hereof. The bond shall be sold at the purchase price of par plus accrued interest, if any, and shall be issued and delivered according to the terms and provisions of the bond purchase agreement. The bond shall be issued in the original aggregate principal amount of not to exceed $50 billion, shall be dated as of the date of its delivery, shall have a final maturity of 30 years from its date of issuance, shall bear interest at the rate of 5% per annum, shall be in the form, and shall be issued upon the terms and conditions recommended by the company. All is more particularly set forth in the trust indenture approved in section four hereof. The mayor is hereby authorized and directed to execute and deliver the bond at such time as requested by the company. and the city clerk is hereby authorized and directed to execute and deliver the bond and affix the seal of the city thereto, and the mayor and city clerk are hereby authorized and directed to cause the bond to be authenticated by the trustee. Section three, to prescribe the terms and conditions upon which the bond is to be sold to the purchaser, the mayor is hereby authorized and directed to execute at the request of the company the bond purchase agreement on behalf of the city and bind between the city and the purchaser and approved by the company. The bond purchase agreement is hereby approved and substantially the form submitted to this meeting. And the mayor with the council of the city attorney is hereby authorized to confer with the purchaser of the company and Kotech Rock LLP Little Arkansas Bond Council in order to complete the bond purchase agreement and substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document. Their execution to constitute conclusive evidence of such approval. Advice is given that a copy of the bond purchase agreement in substantially the form authorized to be executed is on file with the city clerk and is available for inspection by any interested person. Section four, to prescribe the terms and conditions upon which the bond is to be secured, executed and authenticated, issued and accepted and held, the mayor and the city clerk are hereby authorized and directed to execute acknowledge and deliver the trust indenture between the city and the trustee and the mayor and city clerk are hereby authorized and directed to cause the trust indenture to be accepted executed and acknowledged by the trustee the trust indenture is hereby approved and substantially the form submitted to this meeting and the mayor with the council of the city attorney is hereby authorized to confer with the trustee the company the purchaser and bond council in order to complete the trust indenture and substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval. Advice is given that a copy of the trust indenture and substantially the form authorized to be executed is on file with the city clerk and is available for inspection by any interested person. Section five, there is hereby authorized and directed acceptance of the conveyance by the company or any affiliate thereof to the city of the real and personal property comprising the project and the lease of such property to the company pursuant to the lease agreement. The execution and delivery of the lease agreement by and between the city as lessor and company as lessee is hereby authorized and directed, and the mayor and the city clerk are hereby authorized to execute, acknowledge, and deliver the lease agreement for and on behalf of the city. The lease agreement is hereby approved and substantially the form submitted to this meeting and the mayor with the council of the city attorney is hereby authorized to confer with the company, the trustee, the purchaser and the bond council in order to complete the lease agreement and substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval. Advice is given that a copy of the lease agreement and substantially the form authorized to be executed is on file with the city clerk and is available for inspection by any interested person. Section 6, the city and company recognize that under Article 16, Section 5 of the Constitution of the State of Arkansas is interpreted under the past decisions of the Supreme Court of the State of Arkansas applicable to facilities financed pursuant to the Act, including particularly the case of Leyland, versus SNAP 232, Arkansas 57334, SW2D663 of 1960, the project will be exempt from ad valorem taxation. Although the city makes no representation as to the continued precedental value of such past decisions, the company has agreed to enter into an agreement for payments and leave taxes to be dated as of the date of its execution, the pilot agreement requiring the company to make certain payments in lieu of all ad valorem taxes which would otherwise be levied on the project by local public bodies with taxing power. In order to provide for such payments, there is hereby authorized and directed the execution and delivery of the pilot agreement, and the mayor is hereby authorized to execute and deliver the pilot agreement for and on behalf of the city. The pilot agreement is hereby approved and substantially the form submitted to this meeting, and the mayor with the council of the city attorney is hereby authorized to confer with the company and bond council in order to complete the pilot agreement and substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval. Advice is given that a copy of the pilot agreement and substantially the form authorized to be executed is on file with the city clerk and is available for inspection by any interested person. Section 7, the mayor and city clerk for and on behalf of the city are hereby authorized and directed to do any and all things necessary to affect the execution and delivery of the bond, the bond purchase agreement and the trust indenture, police agreement and the pilot agreement, and to perform all the city's obligations under the pursuant thereto. The mayor and the city clerk are hereby further authorized and directed for and on behalf of the city to execute all papers, documents, certificates, and other instruments that might be required for the carrying out of such authority or to be evidenced the exercise thereof. Section 8, because the city is here involved with the acquisition, construction, and equipping of a complex industrial project requiring highly specialized work and specialized types of machinery and equipment, it has been and hereby determined that the city council that competitive bidding be in the same as hereby waive as to this particular industrial project. This action is taken by the city pursuant to applicable laws of the state of Arkansas, including particularly the act. Section 9, Who Tapped Rock LLP Little Rock, Arkansas is hereby appointed as bond counsel with respect to the issuance of the bond and fees and expenses of which firms shall be cost of the project and paid from the proceeds of the bond or by the company. Section 10, the provisions of this ordinance are hereby declared to be severable and if any section, phrase, or provisions shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the section's phrases or provisions.

section 11 all ordinances resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict thank you miss lisa council we'll open it up for discussion uh to the community but anybody signed up for this can i ask a question first sure is there a representative of the bombing company here

This bond would not be sold publicly like your city bonds. It will be placed with an affiliate of the company. Okay. So there's no public sale.

What I want you to tell the interested people here is that the city is not responsible for the

that is correct i think i'm gordon wilburn by the way with cutac rock law firm uh represent the city as bond council and did the same thing some of you may remember may have been on the council for the tyson uh act nine bond issue i don't know four or five years ago whenever that was and i think as i said last time there if you looked at that ordinance you would find them remarkably similar to this one uh there's really no difference between that deal and this one other than the scale of the investment this is totally a special obligation secured by the lease revenues that the company pays which in essence are debt service to its affiliate this is necessary under arkansas law and a number of other states you kind of have to go through this song and dance in order to offer tax abatement A lot of places, a lot of States, the city can just offer tax abatement without going through this process, but not under our state constitution. So that's the reason for this.

And we've done it with Tyson's tasks. We've done them with the university of Ozarks. It's not, it's not something new. No, 1960. That's when this act was passed. Yeah. So we'll open it for public comment. Raise your hand and be recognized. Seeing none, council. Questions, comments? Yes, sir.

Michael Lunsford, Clarksville. I just want to reiterate, please say yes to this. Vote yes. I don't know any of these people, any of them.

But Mike, let's do this. Keep your comments up. Are these the decision makers, please?

They've came in and they're going to come in. They're going to, they've committed to upgrade our electric infrastructure, our sewer infrastructure. They've committed to school programs. They've committed to everything. The city doesn't have money to upgrade our infrastructure at all. Not so ever. They seen enough into this city. They were here long enough and seeing potential here. that they wanted to be part of it. I urge you to please vote yes.

Council?

I had one, and I may have misheard Ms. Lisa in the third paragraph. I want to say I misheard her say 2006. I may be wrong, but I just want to make sure that. Which paragraph? It's the third whereas paragraph on the first page.

Gordon, are you tracking?

It does say 26 on here, but I don't know if I just misheard her or. I think she misspoke. Okay.

If it was wrong, yes, 2026. I need to catch up to you. Rob, where are we at?

Third paragraph?

No, section three. 2026.

It does say 2026. It's series 2020. When she was reading it, I wanted to make sure that it was in the record that it was 2026.

Thank you. Councilor, do we have a motion? So moved. Motion to suspend the rules and place it on the second reading. Second. Ms. Lisa, will you call the roll?

Crystal Thompson? Yes. Robert Thompson?

Yes.

Baker?

Yes.

Bradley?

Yes.

King? Yes. Brassinger?

Yes.

And that motion was for by title only, right?

No, we'll do it next. We passed an order, so this is the process. Oh, I'm sorry. And honestly, so would you use your? I know you got. Johnny, did you read my title, please?

An ordinance or an ordinance authorizing the issuance of a taxable industrial development revenue bond series 2026 under the authority of Act nine of 1960 is amended for the purpose of securing and developing industry within the city. authorizing the execution and delivery of a bond purchase agreement providing for the sale of the bond, authorizing the execution and delivery of a trust in nature securing the bond, authorizing the execution and delivery of a lease agreement between the city as lessor and Hatchbo LLC as lessee, authorizing the execution and delivery of an agreement for payment in lieu of taxes, authorizing the execution and delivery of other documents relating to the issuance of the bond and prescribing other matters relating thereto.

Thank you, Lisa. Is there a motion to spin the rules and place it on this third reading?

So moved. Second?

Second.

Ms. Lisa?

Sorry. I'll slow down. Robert Thompson? Yes. Appreciate it. You got it.

Baker? Yes. Bradley? Yes. King? Yeah. Reisinger?

Yes.

Crystal Thompson? Yes.

Thank you, ma'am.

Did you read the did you read about an order authorizing the issuance of taxable industrial development revenue bond series 2026 under the authority of Act nine of 1960 is amended for the purpose of securing and delivering industry within a city authorizing the execution and delivery of a bond purchase agreement providing for the sale of the bond. authorizing the execution and delivery of a trust in the interest of securing the bond, authorizing the execution and delivery of a lease agreement between the city, as lessor and Hatchbo LLC, as lessor, authorizing the execution and delivery of an agreement for payments and live taxes, authorizing the execution and delivery of other documents relating to the issuance of the bond and prescribing other matters relating thereto.

Thank you, Ms. Lisa. Is there a motion to adopt the ordinance? So moved. Second? Second. Ms. Lisa, could you?

Baker? Yes. Bradley? Yes. King?

Yeah.

Ressinger? Yes. Crystal Thompson? Yes. Robert Thompson?

Yes. Thank you, council. Could you read that second ordinance, please? All right. Okay. You tell me when I have to quit. An ordinance authorizing the issuance of a taxable industrial development revenue bond series 2026 under the authority of act number nine of 1960 is amended

for the purpose of securing and developing industry within the city, authorizing the execution and delivery of a bond purchase agreement, providing for the sale of the bond, authorizing the execution and delivery of a trust indenture, securing the bond, authorizing the execution and delivery of a lease agreement between the city as lessor and SF ARC 1 LLC as lessee, authorizing the execution and delivery of an agreement for payments in lieu of taxes, authorizing the execution and delivery of other documents relating to the issuance of the bond and prescribing other matters relating thereto. Whereas the city of Clarksville, Arkansas, the city is authorized under the provisions of municipalities and counties, industrial development, revenue law, Arkansas code annotated sections 14, one 64, two Oh one. And following the act to own, acquire, construct, reconstruct, improve, equip, and lease facilities to secure and development industry. and to assist in the financing thereof by the issuance of bonds payable from the revenues derived from such facilities and whereas the necessary arrangements have been made with SF ARC 1 LLC a Delaware limited liability company the company provide for the financing of an industrial project consisting of the acquisition of approximately 205 acres of land located at 101 big danger road within the corporate boundaries of the city and the construction of buildings and other real and personal property components of facilities thereon for use in data center operations collectively the project And whereas permanent financing of the project costs necessary costs and expenditures incidental there too. And the cost of issuance of bonds is being furnished by the city pursuant to the act of the issuance of its taxable industrial development revenue bond, SF arc one LLC project series, 2026. in the principal amount of not to exceed $5 billion, the bond, and whereas an open public hearing on the question of the issuance of the bond was held before the city council on July 30th, 2026, following publication of notice thereof in the Johnson County graphic on July 15th, 2026. And whereas the bond will be issued pursuant to the terms and provisions of a trust indenture, to be dated as of the date of delivery of the bond the indenture by and between the city and a financial institution with corporate trust powers mutually acceptable to the company and the company's trustee and whereas the necessary arrangements have been made by the city to lease the project to the company pursuant to the terms of a lease agreement to be dated as of the date of delivery of the bond the lease agreement Now, therefore, be it ordained by the city council, the city of Clarksville, Arkansas, that section one, the city council makes the following findings and determinations subsection a based on information compiled and released by the Arkansas Division of Workforce Services. Unemployment in Johnson County during May of 2026 averaged 5% construction and operation of the project is expected to provide additional employment and other benefit to residents of the city. Subsection B, the company currently intends to utilize the project in a status center operations business. Subsection C, the company's presence within the city is expected to be an important factor in the economic well-being and employment base for the city and its inhabitants. Subsection D, the bond will not constitute a general obligation of the city within the meaning of any constitution or statutory limitation but will be a special limited obligation of the city as provided in the act the principle and interest on which will be payable solely from the revenues or other receipts funds monies and property pledged therefore under the indenture section two there is hereby authorized and directed the issuance from time to time of the bond and the sale thereof to an affiliate of the company the purchaser pursuant to the terms and provisions of a bond purchase agreement to be dated as of the date of delivery of the bond the bond purchase agreement which bond purchase agreement is specifically approved in section 3 hero the bond shall be sold at the purchase price of par plus accrued interest if any and shall be issued and delivered according to the terms and provisions of the bond purchase agreement the city the bond shall be issued in the original aggregate principal amount or not to exceed five billion dollars shall be dated as to the date of its delivery and shall have a final maturity of 30 years from its date of issuance shall be our interest at the rate of 5% per annum shall be in the form and shall be issued upon the terms and conditions recommended by the company all is more particularly set forth in the trust indenture approved in section 4 hereof the mayor is hereby authorized and directed to execute and deliver the bond at such time as requested by the company and the city clerk is hereby authorized and directed to execute and deliver the bond and to affix the seal of the city thereto and the mayor and city clerk are hereby authorized and directed to cause the bond to be authenticated by the trustee. Section three, to prescribe the terms and conditions upon which the bond is to be sold to the purchaser, the mayor is hereby authorized and directed to execute at the request of the company the bond purchase agreement on behalf of the city, by and between the city and the purchaser and approved by the company. The bond purchase agreement is hereby approved and substantially the form submitted to this meeting and the mayor with the council of the city attorney is hereby authorized to confer with the purchaser of the company in Kutak Rock LLP Little Rock Arkansas Bond Council in order to complete the bond purchase agreement and substantially the form submitted to this meeting. With such changes, I shall be approved by such persons executing the document their execution to constitute conclusive evidence of such approval. advice is given that a copy of the bond purchase agreement in substantially the form authorized to be executed is on file with the city clerk and is available for inspection by any interested person section four to prescribe the terms and conditions upon which the bond is to be secured executed authenticated issued accepted and held the mayor and the city clerk are hereby authorized and directed to execute acknowledge and deliver the trust indenture by between the city and the trustee and the mayor and city clerk are hereby authorized and directed to cause the trust and ensure to be accepted, executed and acknowledged by the trustee. The trust indenture is hereby approved and substantially the form submitted to this meeting and the mayor with the council of the city attorney is hereby authorized to confer with the trustee, the company, the purchaser and bond council in order to complete the trust indenture and substantially the form submitted to this meeting. With such changes, I shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval. Advice is given that a copy of the trust and insurance substantially form authorized to be executed as on file with the city clerk and is available for inspection by any interested person. Section 5. There is hereby authorized and directed acceptance of the conveyance by the company or any affiliate thereof to the company to the city of the real and personal property comprising the project and the lease of such properties to the company pursuant to the lease agreement. The execution and delivery of the lease agreement by and between the city as lessor and the company as lessee is hereby authorized and directed and the mayor and city clerk are hereby authorized to execute, acknowledge, and deliver the lease agreement for and on behalf of the city. The lease agreement is hereby approved and substantially the form submitted to this meeting and the mayor with the council of the city attorney is hereby authorized to confer with the company, the trustee, the purchaser and bond council in order to complete the lease agreement and substantially the form submitted to this meeting with such changes that shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval. Advice is given that a copy of the lease agreement and substantially the form authorized to be executed is on file with the city clerk and is available for inspection by any interested person. Section 6, the city and the company recognize that under Article 16, Section 5 of the Constitution of the State of Arkansas, as interpreted under past decisions of the Supreme Court of the State of Arkansas and applicable to facilities financed pursuant to the Act, including particularly the case of Wayland v. Snap, 232, Arc 57, 334, Southwest 2nd, 663 of 1960, The project will be exempt from everyone taxation, although the city makes no representations as to the continued precedential value of such past decisions. The company has agreed to enter into an agreement for payments in lieu of taxes to be dated as of the date of its execution. The pilot agreement. requiring the company to make certain payments in lieu of all ad valorem taxes which would otherwise be levied on the project by local public bodies with taxing power. In order to provide for such payments, there is hereby authorized and directed to the execution and delivery of the pilot agreement and the mayor is hereby authorized to execute and deliver the pilot agreement for and on behalf of the city. The pilot agreement is hereby approved and substantially the form submitted to this meeting and the mayor with the council of the city attorney is hereby authorized to confer with the company and bond council order to complete the pilot agreement and substantially the form submitted to this meeting with such changes i shall be i shall be approved by such persons executing the document their execution to constitute conclusive evidence of such approval advice is given that a copy of the pilot agreement and substantially the form authorized to be executed is on file with the city clerk and is available for inspection by any interested person section seven The mayor and city clerk for and on behalf of the city are hereby authorized and directed to do any and all things necessary to affect the execution and delivery of the bond, the bond purchase agreement, the trust indenture, the lease agreement, and the pilot agreement. and to perform all of the city's obligations under and pursuant thereto. The mayor and the city clerk are hereby further authorized and directed for and on behalf of the city to execute all papers, documents, certificates, and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof. Section eight. Because the city is here involved with the acquisition, construction, and equipping of a complex industrial project requiring highly specialized work and specialized types of machinery and equipment, it has been and is hereby determined by the city council that competitive bidding be in the same as hereby waived as to this particular industrial project. This action is taken by the city pursuant to applicable laws of the state of Arkansas, including particularly the act. Section nine, QTAC ROC LOP Little Rock, Arkansas is hereby appointed as bond counsel with respect to the issuance of the bonds, the fees and expenses of which firm shall be cost of the project and paid from the proceeds of the bond or by the company. section 10 the provisions of this ordinance are hereby declared to be severable and if any section phrase or provision shall for any reason be clear to be invalid such declarations shall not affect the validity of the remainder of the sections phrases or provisions section 11 all ordinances and resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict thank you lord i will open it up to the public for comment raise your hand would be

Seeing none, council. Questions, comments? If not, is there a motion to suspend the rules and place it on the second reading? Second? Second. Ms. Lisa, could you call the roll?

King? Yes. Brassinger? Yes. Crystal Thompson? Yes. Robert Thompson? Yes. Baker? Yes. Bradley?

Yes. Could you read my title, please?

An ordinance authorizing the issuance of a taxable industrial development revenue bond series 2026 under the authority of Act 9 of 1960, as amended for the purpose of securing and developing industry within the city, authorizing the execution and delivery of a bond purchase agreement providing for the sale of the bond, authorizing the execution and delivery of a trust indenture securing the bond, authorizing the execution and delivery of a lease agreement between the city as lessor and SF ARC 1 LLC as lessee, authorizing the execution and delivery of an agreement for payments in lieu of taxes, authorizing the execution and delivery of other documents relating to the issue of the bond and prescribing other matters relating thereto.

Thank you, Lisa. Is there a motion to spin the rules and place it on the third reading? So moved. Second. Second. Ms. Lisa, can you call the roll? Or have I got it at that time?

Rossinger?

Yes.

Crystal Thompson? Yes. Robert Thompson? Yes. Rob Baker? Yes. Bradley? Yes. King?

Yes. Can you read by title, please?

An ordinance authorizing the issuance of a taxable industrial development revenue bond series 2026 under the authority of Act 9 of 1960 is amended for the purpose of securing and developing industry within the city, authorizing the execution and delivery of a bond purchase agreement, providing for the sale of the bond, authorizing the execution and delivery of a trust indenture securing the bond, authorizing the execution and delivery of a lease agreement between the city is less sore. And SF arc 1 LLC is let's see authorizing the execution and delivery of an agreement for payments and live taxes, authorizing the execution and delivery of other documents relating to the issues of the bond and prescribing other matters relating there to.

So, most of the documents so move 2nd, sir, Lisa, could you call roll please?

Crystal Thompson. Yes. Robert Thompson.

Yes.

Baker.

Yes.

Bradley.

Yes.

King.

Yeah.

Ressinger.

Yes. Thank you, Councilman. Gordon, I would greatly appreciate it if we could shorten the titles. There's one. I appreciate that. 4C is going to be CBA, Community Development Benefits Agreement. Jason, do you want to come up and kind of walk us through that?

I'd be glad to Jason Carter. I'm general counsel for Arkansas Municipal Power Association and represent your utility. Of course, we'll connect utility. And I'd say I'd be remiss if I didn't say this. We've had a lot of comments here tonight. You know, I think all these people who are in this room need to go to Congress and show them how to respectfully disagree. You know, because there's people with strong emotional opinions in here. but they can express them and stand true to what they believe in, but still be respectful to other people. I think they've done a good job of that tonight. So, uh, I appreciate that. It's an example for everybody else, how they should conduct themselves. But I say, uh, has been four years coming, welcome to the start line. This is where it starts. So part of this is whenever the project started, when you look at data center developments around the country, some of the communities have been able to negotiate these sort of community benefits or community development grant agreements. And I think that was something that the city was interested in here that I ended up being involved in, I think, primarily because I'd worked on a similar project in West Memphis with the data center that's there. They are very new animals in Arkansas. There's no forms to take off the... the table and say well here we can just do this or uh we have to research around and uh the country and see what other communities are doing and then try to measure our steps has to say well how does that fit here in clarksville and can i just back up for what is it

What is it? What are we talking about? I think a lot of people need to get caught up.

It's an agreement that expresses the position of the city as far as your obligations, one of the most major of which is you've just fulfilled it, is tax abatement. but also things regarding business licensing franchise fees which has already been you know placed within your oversized demand rate ordinance so those kind of commitments that are inviting to the developer to come to your community And then it's the developer's opportunity to say, hey, we want to be a part of this community too, right? And to describe how they can make a financial commitment to things within your community that are important to your community. So it's a matter of conversation. Uh, so, uh, that's, that kind of lets you see, you know, the, uh, the concepts that are around it, but it's a way to address other matters that have not been addressed yet about how to give them a predictable operating environment and how to, uh, get benefits into the community in a way that's meaningful, uh, you know, and affects people's lives in a positive way to help the project as the project moves forward. So, uh, With that, there was a committee assembled to discuss this negotiation of an agreement. And the biggest challenge being, what is the ask? How do we assemble and ask? And there was a lot of work that was put into that from committee members. And I think what you look at within the document today, how that ask is allocated has shifted with negotiations, but the amounts that are within it were agreed upon by the committee. And we tried to pay homage to that and be honest with that. How those funds are distributed got a whole lot harder. I think about back in the day, I used to coach kids baseball and you'd say, hey, who wants pizza? And everybody's like, hey, I want pizza. You go, what kind of pizza are we going to get? And there's like two kids in a fist fight over what kind of pizza we're going to get. And that's just the nature of things, right? That's the way that it goes. There are different ideas about how to best use additional funding for the community.

Should we kind of go over what was worked out? I don't think we've even covered it. Y'all, you know, you ready to understand what they're talking about in here?

I have a question. You mentioned that you had a committee. Yes. Did you have anybody like on the state level from Arkansas Development come in and do any kind of help with that?

I don't know that we had. AEDC?

No. Okay.

Just one minute. They did not. Like I said, these are kind of new animals. I don't know that AEDC, this is their bailiwick either. So we handled it within our community and kind of broke it into two pieces. One's a more initial development. that runs initially just to governmental entities, and then we felt like it was important to include the hospital in that. And then the second part to charitable organizations, you may, I hope you're aware, I don't know that everyone here is aware, but the city is prohibited from giving money away. Cities, under Article 12, Section 5, you cannot appropriate money to an organization. So when you have nonprofits who are doing great things within your community, you can't say as a city government, Hey, they're doing great things. Let's just give them money. You're not able to do that, right? This, uh, community development grant agreement, uh, was shaped in a way to provide funding, a funding source for nonprofits within the community who are making good things happen. It's intended to, in addition to that initial payment, it's intended to flow money to a nonprofit who could then allocate that from their level. An amount that comes every year. It's an annual amount that's renewed. So it's predictable funding. And it leaves you with the control to do this. And if you were convinced that they were not living up to their obligations and properly you know, assigning those funds as they needed to be, then you could choose someone else to be the recipient of those funds. So it's organized to be done that way.

I've got one question. Then I want to call Mr. Willis. I want him to address what the data center has been doing for him and his organization. But can you define for the council, what is ELEMOS and why did you use that word?

Julian Massenary is an old English word referring to charitable. It's all-encompassing, and I would choose no other word.

Since it's all-encompassing.

You're an attorney. You have years, and you don't matter on that one. Mr. Willis, can I get you to come up? Thank you. Thank you, Jackson.

He's using all kinds of words here.

Have you ever heard that word now?

I need it.

Can you... You know, I've talked about your mission and what you do.

Can he say his name, Mayor? Can he say his name?

Let me finish my question. What your organization does for and has been doing with the data center so the council understands.

I'm Pastor David Willis. I'm Pastor Link Church, which is the old Clarksville theater outside of town. We have somewhere around 1,000 people that attend on a weekly basis. A lot of our work is with the recovery community. When I started the project, Johnson County ranked somewhere in the top five for meth addiction in the state. Last year, we were recognized for our work on addiction. Johnson County has now fell out of the top 15 in the state for meth addiction. We run multiple sober living homes in this community. Thank you. We run multiple sober living homes. We also provide a home for DHS to do reunification visits at our expense on one of our properties that we have in town. We've seen over 20 kids pulled out of the foster care system in the last three years through people inside of our church. We continue to support projects like that. One of the major things that we have seen so far is that several of my guys have been able to get job opportunities that they probably never would have got had we not had the job resources that have been brought into town recently. Saying that to say this, these guys are making $27 to $35 an hour, some of them through the programs that are being offered, and I know none of these people. that are being offered have told me that they are being offered the opportunity to become journeymen, electricians and things of that sort by the time they're done. And so the impact that it's had on us at this point has been that a lot of my guys are actually getting opportunities to rent apartments, buy houses and do things like that because they would not have had those opportunities in no negative way. Jobs was our greatest hold back. We could expand our program to 300 men if we had the jobs here in the community. And so it has been very impactful in that way for us to be able to do that. And as far as what you are addressing here right now with this, I can tell you that on a monthly basis, we address anywhere from probably 30 to 100, depending on the month, requests for help in this community because of poverty levels, because of hunger, utilities. things like that sort, I would say safely we give away anywhere from $5,000 to $10,000 a month to help people in this community. So there are major needs for what this community grant will be doing on our end to where we could continue to help maybe mothers, single mothers, single fathers, because there's a lot more of it than you realize out there, for us to be able to continue to meet the needs that we do as a church.

Thank you, Dave.

Thank you.

Annie, do you? you want to talk you don't have to i'll just give you an opportunity if not i'm going to call them where's mr hobbs at and miss patton are they still out there out there tommy you want to come in and just address the council about this the impact of this agreement on the hospital why it would be important miss heather i don't mean to put you on the spot but oh go ahead yeah okay

well so um you know nowadays the uh it's the what hospitals are paid in the state of arkansas for the care they provide really doesn't keep pace with the increasing cost that we have uh to to provide that care so everything is increasing but really reimbursement what we call it is not really is not doing it's not keeping pace so this kind of uh of uh payment to the hospital or would be very beneficial in helping us at least chip away at that that uh problem that we have with you know challenges with what we get paid yeah they are the whole state is is a problem i mean the whole country but rural hospitals in the state of arkansas are very much this would be very beneficial to us if we were able to to accomplish this anything else unless the council has questions

No, I just want to echo what Mr. Willis was talking about. I totally agree with you. I've been dealing with people with addiction for about 40 years, and it's . Likewise.

I'm sure the hospital's been dealing with it as well. I know what you mean. Hands on.

Let me talk. Hands on with people face to face, dealing with people, and dealing with family members.

yeah we would need to help in any way thank you thank you judge houston do you want to address anything about this agreement impact for the county you don't have to just ask him if you wanted to sure we were asked by you and people

strong to make a list and we did it's a tentative list just the things that can we could consider and by could that means our quorum court it will totally go through quorum court they'll discuss it those people are elected they represent the people so i it's great we're having an opportunity to do things within the county and the community Sometimes I think we forget we all live within the county, every city. We're all together in this as a team. So I certainly appreciate it. Rusty, you got anything you want to say? I've never known him. That's right.

That's right. We'll sell something, whatever you all want to do. So I have been fortunate enough to be involved in it and talk to a lot of these guys. It's been going on for several years. You know, the county is kind of like everybody else. They're struggling. uh there's a lot of opportunities that we're missing and i think this will kind of help us get to the edge of where we're going to be the tax dollars is going to help us of course too but the initial investment in the county i believe is the biggest thing for us it's not going to help everybody just like somebody said well go uh he said his restaurant's busy his gas station's busy that's what we're going to see and that is to me is going to be the biggest thing that we're going to see in our county i appreciate you guys

So, Council, I can't think, and Jason, you and I were talking, I can't think of another city in the state where a company has come in and made such an offer. I can't. Maybe West Memphis is like they were the first ones, maybe the only ones in the state's history to have this kind of offer on the table. So we're the second. Council, I'll make a motion that we approve the mayor to sign this. Let me caveat before you make that. Let me caveat that. Once you make the motion to approve it, establishing a committee to help develop the foundation. Sound good. Second? Second. So Lisa, will you call the roll?

Baker? Yes. Bradley? Yes. King?

Yes.

Ratzinger? Yes. Crystal Thompson? Yes. Berwer-Thompson?

Yes. Is there anybody who wants a copy of this?

It's in the agreement. We'll get you one.

Volunteers for this committee?

I volunteer.

Crystal?

I volunteer. Rob?

One more.

I volunteer.

Thank you, council. Clay, Jason, Rusty, David Hopkins, Ray Hobbs. Stanley Edgman, David Smothers. Sorry, Chief. Tommy Hobbs. Who else helped us? Rich Dunsworth, Chris Muldoon. What about Rich Dunsworth? Rich Dunsworth had been on this since February. We have been on this thing since they have been on this thing since February. They've done yeoman's work. It's changed, went back and forth. And I am so proud of them. It's a wide swath of this community. They thought about everything. But Ely and Mosnery means charitable. That means 100 families, safe haven, rape crisis, pregnancy health clinic. They now have a fund that is theirs. If memory serves right, that's a lot of money for them. And it's for no other reason than to the most vulnerable and needy in our community. I am so stinking proud of what y'all have done. it's unbelievable i don't know how to articulate it to you what you just did council it's amazing let's move on sorry uh it's the pr contract miss kristin you want to walk us through a little bit um the mayor asked for um

this company to give you guys a proposal or just help in our communications as we've seen recently we need some of that help and this is just one company this is just a research at this point of course we would probably need to put it put out a rfp to see if anybody else wanted to bid it out so to speak but i i would propose that we at least look at this as a council because just like i told the mayor not one of us can navigate everything when it comes to communication so we need some help with that so that's what this is about

yeah um last meeting uh i was introduced uh crystal introduced me to two ladies sitting right there where you are david right and then i immediately introduced them to mike the artist and said y'all can kind of start kind of maybe working together we have this contract before us and i'm fairly certain it was a large contract it will have to be bid out um but other than that i don't know is there a second is there a second we're adjourned thank you

I don't know.

Thank you, Mike. Appreciate you.

I think so.

Appreciate you, buddy. I think so.

Yeah, when I was talking about it.