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Controversy over elected officials signing NDAs
St. Louis County Commissioner Chair Annie Harala responded to concerns over elected officials signing non-disclosure agreements regarding a proposed data center project in Hermantown. She also addressed a video that shows a confrontation between a commissioner and another man who pressed the commissioner on the topic during a board meeting.
DULUTH, Minn. (FOX 9) - Some St. Louis County commissioners are facing criticism from constituents over the signing of non-disclosure agreements (NDAs) with a potential developer that might construct a data center in Hermantown.
FOX 9's Amy Hockert spoke with St. Louis County Board of Commissioners Chair Annie Harala on the topic. That full interview can be viewed at the top of the page.
County Commissioner Ashley Grimm spoke out against elected officials signing NDAs, saying they reduce transparency with the public. That full discussion can be viewed below.
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Data center NDAs create growing controversy
Community concerns are growing over plans to build a data center near Duluth, with residents complaining they have little details on the project due to non-disclosure agreements with potential companies involved. FOX 9’s All Day spoke with St. Louis County Commissioner Ashley Grimm who, is against such pacts, saying they reduce transparency with the public.
St. Louis County NDA controversy
Big picture view:
The company that is proposing the data center project is still unnamed.
There is no law against NDAs and public records show they have been used in past projects to protect a company's trade secrets.
The three commissioners who signed the NDAs related to the data center include Keith Musolf, Keith Nelson and St. Louis County Board of Commissioners Chair Annie Harala.
Harala emphasized that no decisions have been made and the NDAs adhere to Minnesota open meeting laws.
Board meeting confrontation:
Commissioner Grimm made a motion to open a discussion on NDAs during a commissioner meeting on Tuesday, Oct. 14, but it did not receive a second, so the motion was not carried.
This left attendees without the opportunity to speak on the topic, leading to a local reporter to record a confrontational discussion with Commissioner Jugovich and Commissioner Nelson.
When pressed on why neither one of them seconded Grimm's motion, Nelson said, "I don't give a s*** what you think."
Commissioner Harala addressed the incident during her interview on All Day, saying that she doesn't condone the language that was used and that people "need an opportunity to be heard."
What's next:
Another public discussion opportunity will take place during a board meeting on Nov. 4, where county staff will be available to explain how St. Louis County has used NDAs in the past.
The floor will then be open to discussion from the public to hear feedback on the issue.
Commissioner Harala called the upcoming meeting "an education opportunity."
St. Louis County Board of Commissioners chair statement
What they're saying:
Following the Tuesday meeting on Oct. 14, Commissioner Harala released the following statement on her social media:
"Had I been able to attend today’s meeting, I would have read the following during the NDA discussion:
"I received a note from someone flagging that part of my statement yesterday needed more clarity. I am grateful for their perspective and can see how it was confusing - so here is a little more information:
"I should have been clearer - what I should have said - is that, when companies look at our region for a potential project, they do a lot of research with stakeholders around the potential partnership opportunities and to understand how business works in an area. NDA’s are included in these processes once in a while due to the nature of the clients searching for a space.
"Once a research phase is culminated, and if they decide to pursue a project, the organization builds a plan to pursue the public approval process for a project.
"Then, the company pursues approvals with the appropriate zoning authority in charge of approvals. This is the "plan in place" that I mentioned in my statement. This approval process is the plan for ensuring a public process is followed for legal public approvals.
"At this point, the municipality is in the public process phase and, should they look for partnership or support from the county, that would come forward for a full public process through the SLC board.
"I hope this explanation helps to clarify the process for becoming public. At this time, I don’t see anything on our agenda as a county, but all of those things would be posted publicly, as all policies and board investments will be. All of the zoning/project approvals tie with the local municipality first.
"I recognize that my words have meaning and appreciate the time folks have taken to interact with me, in good faith, to understand this process."
The Source: This story uses information from the St. Louis County Board and an interview with St. Louis County Commissioner Chair Annie Harala.