Urbana City Council did not take action Tuesday night, November 3, on a proposed settlement agreement with Thor Equities over its planned data center project.
The resolution was listed as a second reading during Tuesday’s regular meeting. Council did not vote on the settlement or take action to table it.
The resolution was previously believed to have been tabled during the October 20 meeting by a 4-3 vote. However, council later determined that a two-thirds majority, or five votes, was required to properly table legislation under council rules.
Because the required vote was not reached, the resolution was never officially tabled and must now go through three readings.
Council had initially chosen to hold off on a decision so Urbana voters could have their voices heard on a proposed city charter amendment banning data centers within city limits.
Voters approved the ban during Tuesday’s election.
The proposed settlement would allow Thor’s data center project to move forward under city regulations that were in place on February 13, 2026. It would permit up to 2 million square feet of combined data center and related building space across future phases.
In exchange, Thor would pay the city $50 million, beginning with an initial $5 million payment, followed by additional payments tied to three phases of construction.
The agreement would also require Thor to fund an independent environmental study examining potential impacts on Cedar Bog, water usage and wastewater services. The company would also help pay for water and sewer improvements based on its actual usage.
The settlement would resolve the lawsuit between Thor and the city, with Thor agreeing to drop its claims for damages and dismiss a related state court appeal.
Council is expected to revisit the settlement during its next regular meeting on November 17. Members could also choose to table the resolution until the first meeting in December.
Other Business
Council heard five recommendations from the Board of Control, including airport improvements and interim law director services.
The recommendations included construction and inspection work for a new airport taxilane and six-unit T-hangar at Urbana Grimes Airport, along with increasing funding for interim law director services. Most airport expenses will be covered by state and federal grants, with $26,694 in local funding needed for construction cost increases.
All five recommendations were approved by the Board of Control on 3-0 votes. These do not reflect votes by City Council.
Council also heard first readings on two new ordinances. One would authorize up to $3.1 million in bonds to purchase new fire trucks. The other would renew the city’s agreement with Champaign County to provide legal services for qualifying residents charged with violating city ordinances.
Both ordinances will require additional readings before a final vote.
