The Sulphur Springs City Council voted Tuesday to change its agreements for a 3,000-megawatt data center project and phase out its current developer. According to KLTV, the June 2 meeting follows two active lawsuits that challenge whether the city lawfully approved the massive development in the first place.
Mayor Tyler Law said a new, undisclosed developer would take over the project from MSB Global, with a formal announcement expected soon.
City Attorney Daniel Ray said the council re-adopted amended economic agreements to cure alleged Open Meetings Act violations raised in a lawsuit by resident Jack Curtis. Ray said the re-adoption serves as a redo of the initial letter of intent.
Councilman Jay Julian said he felt uncomfortable voting on the last-minute agreements, which, according to him, were presented with a shotgun to his head to avoid a lawsuit.
The second lawsuit, filed by former landowners Vistra Corporation and Luminant Mining, claims the project violates a strict deed restriction. According to court documents, the deed bars the commercial production, generation, or storage of electricity on the property, which is a former coal mine.
State District Judge Dan Moore issued a temporary injunction on Feb. 10, freezing power-system construction on roughly 5,000 acres while the litigation proceeds.
According to KLTV, the city council amended its budget in May to set aside $1.2 million for legal fees to defend the data center suits. Residents protested the legal spending and also opposed Tuesday’s appointment of Craig Johnson to a vacant council seat, preferring a special election instead. Both lawsuits remain pending in Hopkins County.