The council adopted Resolution 2026-42 on Oct. 12, establishing a citywide policy that prohibits data center NDAs and places new restrictions on confidentiality agreements involving other businesses and projects.
The decision follows months of controversy over the city's agreement with Verrus, the developer behind the proposed Oakline at Mill Creek data center in southeast Salem.
That agreement was signed in March 2025, allowing the company and city staff to hold preliminary discussions without publicly identifying the project. It remained in place until July 8, 2026, when Verrus released the city from its confidentiality obligations.
The disclosure prompted questions from residents and councilors about how such a large development could be discussed for more than a year without public knowledge.
Councilor Micki Varney pushed for changes in July, initially asking the city to explore banning NDAs involving data centers. In September, the council expanded that direction to cover confidentiality agreements across city operations.
Monday's vote puts those restrictions into formal policy.
Under the new rules, Salem can still enter nondisclosure agreements in limited circumstances, including business recruitment, real estate negotiations, procurement and the protection of trade secrets or private financial information.
But those agreements must have a legitimate purpose, protect only information that needs to remain confidential and include limits on how long the restrictions last.
City Attorney Dan Atchison explained that departments seeking an NDA must establish why confidentiality is necessary. The City Attorney's Office must then review the proposed agreement, and councilors must receive advance notice before the city manager can sign it.
The policy does not require a separate council vote on every agreement. It also cannot be used to conceal information that must legally remain public.
"So an NDA does not replace the city's obligations under Oregon law," Atchison told council.
Councilor Vanessa Nordyke welcomed the change, noting that City Manager Krishna Namburi had already committed to ending the practice of signing data center NDAs. The new resolution formalizes that commitment and establishes a consistent process for other agreements.
"No more NDAs for data centers, period, full stop," Nordyke said.
The policy addresses one of the central concerns raised during Salem's data center debate, but it does not determine the future of the Verrus project or change the land-use rules governing its application.
That process remains separate.
For future data center proposals, however, the city has drawn a clear line: developers seeking to work with Salem will no longer be able to require the city to keep those discussions confidential through an NDA.