2026-10-29 - Planning & Zoning- Data Center Legislation Discussion Meeting

00:00hearings, and um, I think they've gone

00:02well. But, uh, here's a focus item for

00:04today's meeting. We're going to, um,

00:07continue reviewing proposed data center

00:09legislation including community benefits

00:11proposals and address outstanding

00:13questions from council members and

00:14community members,

00:16discuss community priorities, potential

00:18benefits, and the information needed to

00:19advance the legislative review.

00:23Um,

00:25I've got a list of attendees that I'm

00:27going to read for us for the record.

00:29We've got the COO here with the city of

00:31Memphis, Chris Winton. We've got DPD in

00:34the audience. I saw I see some Greater

00:36Memphis Chamber

00:37uh, members and executives. I see, uh,

00:40President McGowen

00:42and, uh, VP Ursula Madden with Memphis

00:44Light, Gas, and Water.

00:46And then, um, I've saved our friend from

00:48the Tennessee Valley Authority. We're

00:50going to time travel and actually allow

00:52Mr. Bach to speak first.

00:55Um, they were unable to make the second

00:57and third meeting just due to scheduling

00:58conflicts. So, Mr. James Bach will

01:01actually go first today from TVA.

01:04Um,

01:05and excited to be here and get this, uh,

01:08committee hearing going. So, Mr. Bach,

01:10are you there?

01:16>> Good afternoon. Can you hear me?

01:18>> Good afternoon. We spoke briefly

01:19yesterday.

01:21I still have yet to see your face. There

01:22you are. All right. Nice to Nice to see

01:25you. If you

01:26>> on.

01:27>> Yeah, so if you don't mind, uh,

01:28introduce yourself and, um, tell us a

01:31little bit

01:32about your job there and then I've got a

01:33couple of questions.

01:37>> Okay. Um, did we want to review any

01:40content today or just start with some

01:42Q&A and go from there?

01:44>> Well, I wanted to get just a little

01:46human side from you real quick. Uh,

01:48yeah, if you don't mind.

01:49>> Yeah. Sounds Sounds great. Well, good

01:52good afternoon, everybody. Thank you

01:54for, um,

01:56yeah, thank you for the opportunity to

01:57to update the the council, uh, today. My

02:00name is Jamie Bach.

02:02I lead our newly formed data center

02:05structuring and business development

02:07group and I sit within

02:09our commercial energy function at TVA.

02:14You know, I I

02:15I was reflecting a little bit. I have

02:16been at TVA for over 17 years now, which

02:20has seemingly gone by pretty quickly. Um

02:23but I've had the opportunity to work in

02:25a number of of different spaces. So uh

02:28most of that is kind of on the

02:30commercial energy and customer program

02:32space, but I've also uh spent time in in

02:36parts of our financial services

02:37organization

02:39and and working on uh broader strategy

02:42uh as well.

02:44And and for today and we we we we can

02:46get into it um with some some of the

02:48questions and some of the content, but

02:50my team is really responsible for um

02:54kind of delivering a a standard

02:57commercial framework for data centers

02:59that that our board really helped

03:01establish in our August board meeting.

03:04And and it's it's really rooted in the

03:07mission of TVA uh how we kind of

03:10implement this commercial framework to

03:12to protect ratepayers

03:14um both financially and from a

03:16reliability standpoint. And and the way

03:19we're kind of

03:20executing on this framework is we've

03:23stood up a kind of a centralized

03:26end-to-end process that we are are

03:29working all data data center projects in

03:31the valley through. So

03:33um that's been the focus of my team over

03:36the last three or four months and uh

03:38it's certainly been um

03:40an exciting time to work in the space.

03:42>> All right. Well, thank you for that

03:44introduction. And then uh Doug and

03:46Ursula, if you all don't mind, would you

03:48mind

03:49approaching the desk or whatever if you

03:52will cuz I feel like at some point

03:53during this um

03:56you all may want to want to chime in,

03:57but I'll I'll just start off with the

03:59question for you. And And thank you for

04:00being here.

04:02Um I know you all tried to make it to

04:03the last two meetings.

04:05Um

04:08You know, one of the questions, or I

04:09guess the first question that I asked

04:11Ursula, um

04:13and Doug, you were traveling on that

04:14day,

04:16was, will you explain to us the intake

04:18process

04:20for, you know, everybody talks about

04:22Space XAI, but like any data center or

04:24anything

04:26like that.

04:26>> Sure.

04:29Absolutely happy happy to do that. So,

04:32as I mentioned, kind of coming out of

04:34our August board meeting, we've uh we've

04:36really stood up this

04:38end-to-end

04:40uh

04:40process. So, I'll go a little bit beyond

04:42um just the intake, but just to give a

04:44high-level overview,

04:46um

04:47the process does begin with kind of a

04:49centralized intake function. So, that

04:52that is now my team. We can kind of

04:54serve as as one team, one central point

04:57of contact. Um and and on that very

05:00front end uh part of the process, we're

05:03really gathering information on a

05:06project size, the timing, kind of the

05:09operational characteristics or

05:11expectation,

05:12and that front-end information gathering

05:15really can help feed other parts of the

05:18process. So, again, my team is is kind

05:21of the central hub, if you will, for for

05:23intake. From there, we we work a a

05:27project through kind of a progressive uh

05:31technical evaluation. This is mostly in

05:34our transmission space. So, from system

05:37impact studies to detailed engineering

05:40studies,

05:41what is required um

05:45from an infrastructure need, a timing,

05:48and what costs will this, you know,

05:50prospective data center need to cover

05:52for interconnect.

05:54Uh from there, we overlay a standard

05:57commercial framework, um and then having

06:01again that one team, that one process

06:03really helps

06:04align any

06:06coordinated execution of agreements or

06:08communications

06:10on the back end. So,

06:12I think just having this this consistent

06:15evaluation process has really been

06:17beneficial. [clears throat]

06:18>> All right, and thank you for sharing

06:19that. I'm thinking um

06:22and I'm going to say this humbly as like

06:23the MLGW chair the last 2 years, I feel

06:26like I'm being redundant

06:27but but I always learn something new

06:29when I, you know, think I might know a

06:31little something. So, Ursula and Doug

06:33have done a great job

06:36as far as I'm concerned, you know,

06:37explaining um and I'm thinking

06:39Memphis-centric now

06:42um

06:43as far as an intake process, right? Like

06:45if someone comes to Memphis and they're

06:48exploring building a data center here.

06:51Um you know, and I'm thinking about

06:52speaking to the public right now as

06:53everybody's learning about this process.

06:55Like I understand the intake process for

06:58you at TVA.

06:59But like Doug, you talk about and

07:01Ursula, you've talked about how it takes

07:02like a year maybe sometimes to

07:05do all the research and make sure I'm

07:06talking about protecting ratepayers,

07:09aquifer, like all the things we've

07:10talked about.

07:12Like y'all working in conjunction

07:14together, could you explain that a

07:15little bit?

07:16>> Yes, I'll start. Um

07:18so,

07:19>> [clears throat]

07:19>> typically folks will start with us

07:22and I want to say before we agree to

07:24serve any new customer, I want to

07:26reiterate that my obligation is to

07:28ensure that I protect the availability,

07:30reliability, and affordability of the

07:33utilities that I provide for all of our

07:35existing customers.

07:36>> And thank you. You say that every time

07:38and I appreciate it every time.

07:39>> That is predicate number one. Yeah. So,

07:41if somebody is a large electric customer

07:43like a data center and and asks

07:46uh for service, they will submit a

07:48request, a load request to MLGW.

07:51If that is larger than 5 MW, we will

07:53contact TVA and say we have a large load

07:56customer, so standby because you will be

07:59required to do a system impact study.

08:02What happens is that large load is

08:04evaluated. As was just mentioned, we

08:06look at the size and the location of the

08:08load.

08:09We then look at what is around it. What

08:12kind of infrastructure do we have in

08:14existence? And then we look at the

08:16impacts of what that load will have on

08:18the system. So,

08:20will it affect the reliability of

08:22existing customers? Will it take away

08:25from the availability of power from

08:26existing customers?

08:28And that is a very formalized process of

08:31studying that engineers go through

08:33multiple iterations of.

08:35Um because we want to make sure that in

08:36the most extreme circumstances, if there

08:38is a substation offline or a a power

08:40line down, that we can still serve

08:42everybody ably even in those diminished

08:45circumstances.

08:46TVA does a very similar study for the

08:49transmission of power to our system and

08:52also for the generation. Do they have

08:54enough generation capacity in order to

08:56meet that new load?

08:58Um once that study is completed, we will

09:01then move to a facility study where we

09:03identify

09:04uh that Okay, TVA, it appears they may

09:07have enough power to generate, they can

09:08transmit it to us, uh but they may have

09:11to make some changes to the system to

09:12make it more reliable.

09:14In our distribution system, we may have

09:16to upsize one of the wires to make sure

09:18we don't overload it. We may have to

09:19build a new substation. We may have to

09:23add some new components to the electric

09:25system to make sure it stays reliable

09:27and that we can distribute power under

09:29almost every circumstance.

09:31We calculate the costs of that and then

09:33we present that to the customer and says

09:36and say, "We can serve you under the

09:38following circumstances and here are the

09:41improvements you will have to pay for in

09:42order for us to do that."

09:44Now that is

09:46the process that we look for. I think

09:48that's a community benefit that we talk

09:50haven't talked about in that way, but

09:51number one, that they have to pay their

09:54own way. 100% of the infrastructure

09:56that's necessary to serve them is paid

09:58by them. Now that is not true if the

10:00Philips Spinoza factory comes to town.

10:03If Philips Spinoza factory comes and

10:05they have a large load of greater than 5

10:06megawatts, we, MLGW and TVA, will bear

10:10the costs of bringing the transmission,

10:12generation, all the distribution to you

10:15because we want you as a new large

10:16customer who's going to provide new jobs

10:19for our community. So, you do not have

10:21to pay your own way. We will sell you

10:23more electricity and that's how we'll

10:24get reimbursed. So, number one, pay

10:26their own way. Number two,

10:28predicates for service, even once they

10:30have decided that they'll pay for

10:31everything that we can ably serve them,

10:33is that they have to be curtailed before

10:36every other customer.

10:38So, if there is a pressure on the grid,

10:40we will curtail them first.

10:44Third,

10:45um that

10:46we have to ensure that um

10:49and TVA just did this,

10:51that they are paying more for their

10:53electricity than other commercial and

10:55industrial customers are.

10:57And that is the rate that they are

10:59paying. I'll let TVA talk about the

11:01capacity payment up front to make sure

11:03that they're paying for the generation,

11:04but all of this is

11:06put on the data centers. None of it is

11:08put on the ratepayer. So, that is a

11:10benefit for us to get significantly new

11:13infrastructure on our system,

11:15significantly upgraded infrastructure on

11:16our system at no cost to our customers,

11:19and they are protected from any impacts

11:22to reliability, affordability, or

11:24availability of power.

11:26That is why I can say, as I've talked to

11:28all of you about the water and gas rate

11:30increases that we're proposing, that

11:32they are completely divorced from the

11:33data centers. In fact, we forecasted

11:35that long before the data centers were

11:37even a topic of conversation back in

11:392023. So,

11:41I want everybody to feel comfortable

11:43that it is our obligation, whether it's

11:45a data center or manufacturing plant or

11:47another large load customer, that we

11:49have got to do this rigorous analysis to

11:52ensure that we protect our ratepayers,

11:54we protect the electric grid,

11:56and all of that happens in coordination

11:58with the Tennessee Valley Authority and

11:59MLGW engineers before we can agree to

12:02serve anyone. And then once we have all

12:05those lined out, then there is a service

12:08agreement that goes into effect that

12:10memorializes everything I just said.

12:12Number one, you'll be served with this

12:14amount of power and no more. Number two,

12:16you will be curtailed at this number of

12:18hours per year at our discretion. Number

12:20three, should you fail to curtail, there

12:22are

12:23monetary penalties. Number four, if you

12:25then further

12:26fail to curtail, we will cut you off.

12:29So, there's lots of protections in here

12:32for our constituents that ensure that

12:35they pay their own way and they are the

12:37first to have to curtail their power

12:39before anybody else does. So, that is

12:42how we have operated. That's the model

12:44that we put into place. I will reiterate

12:46again,

12:47that model that we put into place in

12:49Memphis has been replicated and is now

12:52memorialized as the ratepayer protection

12:55pledge that everybody has signed across

12:57the nation. So,

12:58there's a lot of good work that's done

13:00here.

13:01I guess while I have the floor,

13:02Councilman, the other community benefit

13:04I will say is that we also saw that with

13:07our gas and water. We made them pay for

13:09all that infrastructure.

13:10And further, the partnership with TVA

13:13>> When you say we made them pay, who who

13:15what are you talking about?

13:15>> The the data centers had to pay for any

13:18new water or gas infrastructure.

13:20We often talk about electric, but again,

13:22I'll come back to the water. We have

13:24been discussing with TVA since 2018,

13:27how do we reduce their reliance on water

13:30from the aquifer and we came up with the

13:32recycled water plant idea. And so, that

13:35became a benefit that we put forth in

13:37the very first discussion with XAI was

13:40help us build this and that turned into

13:42they are building it and that is a 250

13:44million to 300 million-dollar project

13:46now.

13:48So, a benefit to us is it reduces demand

13:50on the aquifer, protects our customers

13:53and the future customers hundreds of

13:55years in the future to make sure we have

13:57pristine water here. So, hopefully that

13:59covers the water front of a lot of

14:01things about how we treat this

14:03before we agree to serve anyone.

14:05>> All right. Thanks.

14:07Um

14:08I've got another question. We've had

14:09Councilwoman Cooper-Sutton join us.

14:12Um Councilman Canale snuck in quietly.

14:16Impressive. Um,

14:18and Councilman Warren, you're you are in

14:20the queue.

14:22And we got Alan Wade.

14:25Please.

14:28All right. Go ahead go ahead.

14:32You got your mic on?

14:33>> Sir.

14:36So so you your comments

14:40indicated that the process that you had

14:42been using has been memorialized in the

14:44new

14:45state law that requires you and TVA to

14:49ameliorate any impact on the rate payer.

14:51>> And I think nationally the president has

14:53issued that across the country the rate

14:55payer protection pledge and all the

14:56utility all major utilities have adopted

14:58that model.

14:59>> So part of what you said was that

15:02uh they have to also agree to curtail

15:05their usage when there's a peak demand.

15:08>> That's correct.

15:08>> And so is this embodied in an agreement

15:11with you and the customer?

15:13>> It absolutely is. So if they are if we

15:15have an agreement to serve, it is

15:17embodied in the service agreement with

15:18MLGW and the customer. There is a limit

15:21that MLGW can serve. It's 800 megawatts.

15:23Anything above that TVA has to serve

15:26directly. Now they can also serve

15:27directly lower than that. In the service

15:30agreement that TVA has it's memorialized

15:32and it's not just um that they have to.

15:34It's the actual number of hours and the

15:36duration that they have to curtail. And

15:39I will tell you that early on there was

15:41a shorter number of hours and a shorter

15:43number of times and now it is

15:45significant

15:47um especially as TVA builds out new

15:49generation.

15:49>> And then one final question.

15:51To the extent that that we review all

15:55applications for new data centers

15:59and impose a requirement that they have

16:03tained approval for you to serve them

16:08electricity or water or whatever. Um is

16:11there you know at some point in time

16:13could you certify to us that that has

16:16been done so we can check that off our

16:17box.

16:18>> We absolutely can because before and

16:20that's all memorialized in that service

16:22agreement before it comes through there,

16:24the checklist says all of these

16:26requirements have to be met before it

16:28comes to us for approval and that

16:30service agreement can't be signed until

16:32such time as all of those things are

16:34certified, so we're happy to share that.

16:35>> Okay, and and I'll echo on that.

16:38Our process is going to probably be

16:40doing the same thing. You got to meet

16:42all these checklists and that's just

16:43going to be one of them. We check them

16:45off. They meet meet them, they go

16:47forward. If they don't, they don't.

16:48>> Yes, sir.

16:49>> That's all I have and I got to go to

16:50full power.

16:52>> Thank you, Alan.

16:54Um

16:56Thank you again, Doug and James. I want

16:59to be sure I think I called you Jamie on

17:00the phone yesterday.

17:03Is that right?

17:04>> Yes, sir. Jamie.

17:05>> It threw me for a loop. I was like, I

17:06didn't Yeah, I didn't, you know.

17:08Sorry, I was going to apologize for

17:10calling you Jamie. I should have known

17:11that would That would have been what you

17:12go by. Um

17:14>> No problem.

17:16>> Dr. Warren, you got it. Go ahead.

17:17>> I just might

17:18>> Oh, sorry. Go ahead, Jamie. Yeah.

17:22>> No, I was just going to piggyback on um

17:24Doug's comments. He he absolutely right.

17:27I think

17:28the the the standard approach for for

17:31for for TVA [clears throat] valley wide

17:33is is just that, ensuring reliability

17:35and afford- affordability for all and

17:37that the data centers pay their own way.

17:40That's the transmission, that's the

17:42rate, that's the incremental generation.

17:45So, all of those pieces are embedded uh

17:48in our standard commercial offering and

17:50as Doug said there,

17:52uh memorialized in in power contracts as

17:55these

17:56these projects

17:58>> Thank you.

17:58>> are worked into the system, so.

18:00>> Jamie, real quick before I kick it over

18:01to Dr. Warren, I'm looking and I just

18:03want to announce this again. We created

18:05a website on the city website and Ella B

18:08and the administration helped us with

18:09that.

18:10And Ursula, I'm looking at the

18:11communication piece that you sent us.

18:13It's a public update piece and it's got

18:16a ton of great information.

18:19I think almost everything that Doug just

18:21mentioned is on is on here.

18:24And so just available to the public and

18:26Jamie, if you have anything that you

18:27could send us

18:29um

18:30>> Sure.

18:31>> just a fundamental piece that explains,

18:33you know, the protections and

18:35what I think is the great work that that

18:38y'all do and we and I we appreciate the

18:40partnership that we have, but I would

18:41love to be able to put that on online

18:43for people to see.

18:45Certainly if it um

18:47reaffirms anything we're talking about

18:49today just to keep it documented for

18:51everybody.

18:52All right. I feel like I've spoken a

18:53whole lot, council members. Uh

18:56I think council members are coming in

18:57with more questions, but Dr. Warren,

18:59you're up.

19:00>> Thank you, Mr. Chair. Uh thank you uh

19:02Jamie for being with us.

19:04Yeah, I'm sure it you're aware as we are

19:07that the general public is not very very

19:11enamored uh with multiple data centers

19:14coming online rapidly.

19:16And I think what we're seeing is just

19:19sort of a general uh reputation

19:23uh or uh of this industry in general uh

19:27because of worries about it causing

19:30their power to go up, because of worries

19:33about it using uh gas and and turbines

19:37and causing pollution. Is there any plan

19:40for TVA as you're generating more power

19:43for these uh data centers to make sure

19:47that that power is renewable energy? And

19:50if so, what is it and how soon can we

19:52expect it be online? Where are you with

19:55nuclear coming online

19:58to begin to help us as far as uh global

20:00warming and climate change, etc. Because

20:03as we're looking at this, it's all a big

20:05picture. Uh and the amount of

20:08power these things are using now is a

20:11small percentage, but if you look at the

20:13growth of what's going on with these, it

20:15could be much more. So, renewable

20:18energy, where's that coming into TVA's

20:20picture? What are you doing as far as

20:22these data centers requiring them to do

20:24that? And how are you controlling them

20:27coming online and then doing what we had

20:30in Memphis where they just buy out their

20:32own power plant that's carbon-based

20:34power plant, put it next to a

20:36neighborhood and gear it up. How do we

20:39stop that and what are you doing to make

20:40that not occur?

20:42If anything.

20:45A lot of questions.

20:46>> Yeah, maybe a couple comments.

20:48Uh no [clears throat] problem. Our a

20:49couple comments, so

20:51you know, the mission of TVA and then

20:53we've kind of talked on this is

20:55delivering, you know, reliable,

20:57affordable energy and and we do that

20:59through a least-cost planning mandate.

21:01So, really every planning and commercial

21:04decision we make, including as you

21:06alluded to, the integration of data

21:08centers is evaluated through this

21:09least-cost planning mandate. Um we have

21:12a very diverse

21:14uh

21:14uh

21:15generation portfolio. Um and we'll

21:19continue to evaluate those portfolios,

21:21these load growth through efforts like

21:23our IRP. Again, with that foundational

21:26element of protecting existing

21:29customers, maintaining that dependable

21:32um and reliable service. So, we have

21:35those mechanisms like an IRP to evaluate

21:38those different scenarios as we see this

21:41this load growth coming onto our system.

21:42>> What's the IRP again?

21:46You said a IRP.

21:46>> Integrated resource plan.

21:48>> Okay, right.

21:49>> Yes, sir. Apologies. Integrated resource

21:51plan where we evaluate a number of

21:53different scenarios um and the diversity

21:56of our generation portfolio as we see

21:59load growth.

22:01>> Okay.

22:01>> So, if I can add there, we can give you

22:04the top-level summary. The IRP was just

22:05recently completed and I can tell you

22:07having been familiar with this and Jamie

22:09can fill in, there is at least the last

22:11count, I think, 6,000 MW of solar that's

22:14included in this. Um as one of those

22:16pieces, obviously we're going to have to

22:18double the amount of production that TVA

22:20has over the next you know, couple of

22:22decades here, but I know there's a

22:23significant amount of solar integrated,

22:25a significant amount of battery storage

22:27integrated into that as well.

22:28And I will say on the nuclear side, that

22:30is a a nut that the entire nation's

22:32trying to crack. TVA,

22:34um just from talking with the CEO and

22:36understanding this having been in DC,

22:38we want TVA to be the leader in bringing

22:40new nuclear on, but we do not want the

22:4210 million people in the valley who rely

22:44on that to bear the burden of the cost

22:46of the national model. So,

22:48uh there is a significant effort

22:50underway to ensure that TVA has the

22:52resources and funding that don't come

22:54from the ratepayers of TVA. That's

22:56federal dollars to help build out that.

23:01Uh that's a much longer conversation,

23:03but I do want to let you know that that

23:05is top of mind and a priority. I don't

23:07want to speak for Jamie, but uh knowing

23:09uh Mike Skaggs, the new CEO, that is top

23:11of mind for him and he's been working

23:13very hard in DC to bring that on so that

23:15we can be the leader here in new

23:17nuclear. Uh that's everything from micro

23:20to small to large-scale nuclear

23:22reactors. Now, I want to answer the

23:24second part of your question, and that

23:25is

23:26our job is to bring the connection to

23:29the data center. Uh should that

23:32connection be insufficient and they

23:34decide to generate their own power

23:35behind the meter, that is where the

23:37discussions you all are having because

23:40uh that's part of the entitlement that

23:42comes with the zoning that is there.

23:45What is allowable for behind-the-meter

23:47generation? We could not dictate that.

23:50For us, we only evaluate the electrons.

23:54Where would that interface with our

23:55system and what could it potentially do?

23:56Is it an inverter-based, in other words,

23:58a battery, or is it or or solar-type

24:01thing, or is it a spinning metal kind of

24:03thing? Both of those we have to evaluate

24:05the connection to our system. So,

24:07>> So, really you don't have any way you

24:09can regulate or tell them what to do on

24:11the backside, right?

24:12>> So, I'll give an example. If a data

24:14center needed 200 MW on TVA and we

24:16decided we could give them 100,

24:19that's what we would agree to serve them

24:20with. And then if they decided to bring

24:22something behind the meter

24:24and connect it on their property, and if

24:26they had the zoning entitlement to do

24:27that, then they could connect that right

24:29up. Um and they could use that as a

24:32power source. You're seeing that today

24:34and that's kind of the things you're

24:35alluding to. So, we don't have a

24:38regulatory authority to tell them what

24:39they can't do behind. We can say if what

24:42they're doing behind the meter is

24:43connected to the grid, it's disallowed

24:45because it would cause some kind of

24:47harm. But, as long as that harm is

24:50mitigated, we can't we we have no other

24:52regulatory authority behind the meter.

24:54>> And I think this is for Mr. Raggsdale.

24:56So, as we're looking at what we're going

24:57to be doing with our zoning in the

24:59future, you know, I think uh

25:02putting uh

25:04carbon-based generation next to schools

25:07or next to communities may be something

25:10that we're going to be able to zone in

25:12or out based on the distances and and a

25:15reasonable record Yeah, a reasonable

25:18person would say that we could win the

25:20lawsuit with it. So, I I think it that's

25:23sort of how we're going to try to use

25:24our zoning to make sure that we don't

25:26have uh our neighborhoods in trouble.

25:29>> Control what we can control, councilman.

25:32Yeah, agreed.

25:33>> Okay. Uh and uh I guess with TVA I I I

25:36was wanting to hear about the nuclear.

25:38Thank you for that, Doug.

25:40Uh and uh are we going to be in

25:42Tennessee the lead state in TVA as we

25:45move forward with this based on our

25:47position?

25:49>> Well, yes. I think you know, Tennessee's

25:51by far the largest state in the

25:52Tennessee Valley and so

25:54uh most of the resources are here, but

25:56there will be assets in other the other

25:58six states as well. But, certainly

26:00uh the majority of the action will

26:02happen here because we are a very large

26:04uh but the largest part of the Tennessee

26:06Valley, but uh we all work very closely

26:08together. So, and again, uh the power

26:11that we generate here at the Allen plant

26:12is used in Kentucky and Mississippi and

26:15Alabama and and as far away as Virginia.

26:19So, we wheel that power all across the

26:20valley. So, for us, it's important to

26:22have the source

26:24for TVA to be able to wheel that power

26:26through transmission. So, that's why

26:28when we talk about we're all connected

26:30together. So, we should be advocates for

26:32adding net new generation. Um the clean

26:35generation you talk about

26:37>> Like the solar that you're doing.

26:38>> doesn't have to be here. It can be

26:40somewhere else.

26:40>> But the solar that you're planning on

26:42bringing on bringing online is just

26:44going to be coming from MLGW and uh the

26:46only and we'll have access to that here

26:48in the city.

26:49>> We we can't generate that ourselves yet.

26:51That's a different story. We're

26:52batteries, yes, it's it's going to be in

26:54our distribution system.

26:56>> Uh but I mean I understand we got TVA on

26:58the line now, so maybe we can see what

27:00they can do to help us where we can do

27:02our own solar down here. Is Y'all Y'all

27:05going to help us with that, right,

27:06Jamie?

27:09>> Yeah, happy to partner with MLGW and and

27:12have conversations. And I just want to

27:14echo what uh was being said. I think

27:17Tennessee is uniquely positioned to be a

27:19a leader there in new nuclear

27:22uh as as was mentioned, but TVA has a

27:24kind of a history of nuclear

27:27uh generation and and I think there's a

27:30new nuclear ecosystem developing really

27:33across the state of Tennessee. So, it's

27:35um

27:36it's an opportunity to be a leader in an

27:38exciting time in that space. And just

27:40one other comment there at at to Doug's

27:42point, I think

27:44proponents of adding net new generation

27:46are very diverse

27:49generation portfolio inclusive of um all

27:52kinds of generating assets helps keep

27:54rates low and and reliability high. And

27:57so, that's um that's what we're always

28:00looking to evaluate.

28:02>> Thank you. Thank you, Jamie. We're

28:03definitely very interested in you guys

28:06doing what you can to help MLGW figure

28:09out how to add solar and battery into

28:12our own ability down here just in case

28:15there's a major systems issue or you

28:18know, we have those incredibly hot days

28:20and incredibly cold weeks where we

28:23really need extra extra service. And I

28:27think that's the way we could keep our

28:28cost lower here if we were generating

28:32solar power and cuz once you get it in,

28:34then cost you anything to generate it.

28:37Thanks.

28:38>> All right, thank you, councilman. We've

28:39got a question from Councilwoman Logan

28:43online.

28:44See you. My eyes aren't as what they

28:46used to be.

28:48>> I know.

28:49>> Oh, there you go. Hey, Councilwoman

28:51Logan.

28:52>> Can you hear me?

28:53Hello. Hello. How are you all?

28:56Thanks to TVA and MLGW everyone that's

28:59here. I have a couple of questions. What

29:00The first question

29:02Well, kind of the questions were from

29:04earlier conversate earlier presentation,

29:07but I'll still ask it.

29:09As TVA is preparing to build more power

29:11generation infrastructure, are there any

29:14local infrastructure improvements that

29:17need to be made

29:19or that we need to consider to prepare

29:21for it?

29:22And if so, do you all are you all

29:25working together, MLGW and TVA,

29:28um

29:29so that that is considered when

29:32determining the needs and/or initial

29:34investment for new um companies that are

29:37going to have a scale or any resource

29:39intensive use request uh is made?

29:45>> Logan, I'm happy to take a stab at that,

29:47but would welcome your perspective as

29:48well. So,

29:50um for any new data center loads,

29:53consistent with what our board approved

29:55in August, we are adding incremental

29:57generation to serve those those data

30:00center loads. The new rate plus what we

30:03call a capacity commitment charge

30:06ensures that data centers are funding

30:09the full cost of adding that incremental

30:11generation to the system, so there's no

30:14cost shifting um to other ratepayers. As

30:17far far as the energy delivery or the

30:20transmission infrastructure needed to

30:22serve both at the bulk and and the

30:25distribution level, that is where uh

30:27both the TVA and MLGW transmission

30:30engineers work very closely together to

30:32understand

30:34um

30:35what projects, what infrastructure is

30:37needed to to be built to serve these

30:40loads.

30:41And again, in in that instance, the the

30:43data center is covering the full cost of

30:45any uh

30:47any generation and transmission

30:50infrastructure required, but

30:53uh Doug, am I Do you have any comments

30:55on the the local level?

30:57>> There is a very close coordination, I

30:59would say daily, multiple times daily on

31:01these projects. And And just to be

31:03clear, I just to give an example, since

31:05we are a water and gas utility as well,

31:08um you know, we obviously provide water

31:10to the to to the TVA Allen combined

31:12cycle plant when that was new. So, we

31:14had to coordinate at that level. We also

31:16provide all of the natural gas

31:18connections to that. There is a separate

31:20contract TVA has, but that comes through

31:22the

31:23MLGW gate, so we coordinate that very

31:25closely. TVA is replacing 16 old

31:29combustion turbines that were fuel

31:30oil-fired. This is uh you know, 1960s

31:35style technology or 50s. They're

31:37replacing them with six aero derivative

31:40turbines. These are peaking plants that

31:43will be turned on

31:45uh

31:45infrequently, uh only when the peak is

31:48very high. MLGW and TVA worked, this is

31:51the infrastructure question,

31:52Councilwoman Logan. Councilwoman Logan,

31:54uh we had to make sure we had sufficient

31:56gas pipeline. Uh we had to make sure

31:58that we had the transmission ability to

32:00get the gas there and the capacity. So,

32:02that's one example, but it spans as uh

32:05Jamie was saying, anytime there's new

32:07electric load, one more electron coming

32:10in, their transmission engineers, our

32:11transmission engineers, and our

32:12distribution folks work together to make

32:14sure that it's seamless.

32:17Um and so, we work

32:19incredibly hard to make sure that uh

32:22if you think about it this way, there's

32:23a thousand things that have to go right

32:25for that light to come on when you hit

32:26the switch, and only one thing to go

32:28wrong. And the 10,000 employees at TVA

32:31and 2,700 folks at MLGW are the people

32:33that allow those thousand things to go

32:36right. Uh And you can't let one thing

32:39drop out. So, we are linked together.

32:44>> Absolutely. Well, that's good to hear.

32:46And as we represent the

32:48650,000

32:50constituents, you know, we have to ask

32:52these type of questions. And so, I do

32:53appreciate that. Um if you see the

32:55perspective that we have to ask the

32:57question. But I want to um ask also a

33:00little delve a little deeper.

33:02I hear you say that you all are

33:04coordinating that and to this point um

33:07it seems to be that you all are

33:08coordinating well. Um but is there

33:10anything in writing that um

33:14you know, kind of codified or put that

33:16in writing that there is coordination

33:19prior to

33:21that um

33:22prior to TVA

33:24agreeing to do those things

33:26or agreeing to something that we are

33:29maybe not

33:30um

33:32in position to find at that time.

33:35That

33:37that it is uh in writing that they will

33:40make sure that those things are covered

33:43by the applicant.

33:46So, I know you say you all coordinating,

33:48but is there anything in writing to

33:49ensure that that happens?

33:51>> A couple things. We have a all

33:52requirements contract with TVA that lays

33:54out much of the coordination.

33:57We have uh separate contracts for gas

33:59and for water that are separate from

34:01electricity that are uh memorialized

34:03between MLGW and TVA.

34:06And then

34:07the

34:07the ratepayer protection pledge that was

34:09signed by TVA memorializes

34:12their commitment to ensuring all of

34:14those things are done before any new

34:16connections are made. So, I think

34:18there's a significant amount of uh

34:21oversight

34:22um and commitment in writing that um

34:26the things we just talked about are now

34:28and they were just affirmed by the board

34:29during the recent board meeting that was

34:32held in Memphis, Tennessee. So,

34:34and Jamie can talk about where they're

34:35codified

34:36in MLGW uh or excuse me, in TVA's kind

34:39of

34:40policies.

34:42>> Yeah, I'll just [clears throat] I'll

34:43just echo

34:45Oh.

34:46Sorry. Go ahead.

34:47>> No, go ahead. Go ahead.

34:50>> I was just going to echo this this new

34:52standard process. We do have stage gates

34:55and contractual kind of milestones that

34:59um

35:00outline that full cost recovery and and

35:03commitment for projects that make it

35:05further in the process. So,

35:07whether that's a project agreement or um

35:10other forms of agreement just like uh

35:13was said by MLGW, uh we do have stage

35:15gates in the process to capture that.

35:19>> Okay, sounds great. Last question, MLGW,

35:23um President Strickland,

35:25um how is the city of Memphis or MLGW

35:27monitoring the timeline or going to

35:30monitor and

35:32um can't say enforce, but monitor the

35:35timeline for building the water

35:37treatment facility moving forward. You

35:40mentioned the water treatment facility

35:41earlier

35:42and brought this question to my mind.

35:45So,

35:46has there been any, you know, discussion

35:47on how to best monitor that so it won't

35:50be a year and we find out, okay, that's

35:52going to be a break or a a wait, you

35:56know? So, this last episode kind of

35:58caused pause or caution for a lot of

36:01citizens. So, what are we doing to make

36:04sure we're not if in that position

36:06again?

36:08>> So, I guess I'll say it like this. There

36:10is as we've talked about before, we have

36:13a commitment. Is there a contract? No.

36:16But, you have my commitment that I am

36:18going to be the lead advocate for this.

36:21Uh this started back when I was with the

36:23city and I followed through with it at

36:25MLGW. I am in regular correspondence

36:28with the leadership at SpaceX AI.

36:30Uh recently had the update that they

36:32have committed that they will begin in

36:34January. They have uh done an RFP. They

36:37have selected a pre-construction

36:39contractor. They have selected a

36:41uh primary contractor. I think they'll

36:43be moving forward with subs so they can

36:44get mobilized. Um all I can tell you

36:47since I don't have, you know, there was

36:49no contractual agreement to get it done

36:51that it has my uh direct attention and I

36:54am committed to ensuring that we follow

36:56through with this. So, um

36:59if you're looking for somebody to to

37:01make sure they have the focus on it, I

37:02have a lot of things to see focused on,

37:04but this one is high on my list because

37:06it's a commitment that we had. So, uh

37:08there's actually a letter that came from

37:10SpaceX I was this that came to all

37:12Memphis City Council members and to the

37:14mayor. Uh so, there is a letter of

37:16commitment from them, so you have that.

37:19Um but beyond any contractual

37:21obligation, just know that you have a

37:23strong advocate here in me and I will

37:25stay on top of this thing.

37:29>> Okay, thank you. Thank you, Chair.

37:30You're back for now.

37:31>> All right, thank you, Councilwoman.

37:32We've got Councilwoman Cooper-Sutton and

37:34then Councilman Warren.

37:37Councilwoman Cooper-Sutton.

37:40>> Thank you. Mayor Strickland, I just

37:42heard something to me, as a

37:43businesswoman, prior into business,

37:47that's very disturbing. There's no

37:49contractual agreement out there. You're

37:51very focused in on it,

37:54but and you're a big advocate. Well, we

37:57all are big advocates, but when you're

37:59doing business with someone, and I'm

38:01sending you out to represent,

38:04and anything can happen to you at any

38:06moment, just like it can happen to me,

38:08just like it just happened to my family.

38:09At any moment, things can pop up. But to

38:12hear you say that there is no

38:14contractual agreement, and you are an

38:17advocate, and you're really focused in

38:19and zoomed on it, is very disturbing to

38:22me. The second thing is with how fast

38:25this is moving, and you did say there's

38:28a 1-year process before approval is

38:30going on.

38:33And

38:36we are currently working on zoning and

38:40siting at all of these parcels that are

38:43happening. But if you have a one-year

38:46notification, you know beforehand

38:49why

38:52the council is not included in this. And

38:55moving forward, there needs to be a

38:57partnership moving forward with TBA,

39:00with MLGW, with Edge, with the city,

39:04with the county.

39:05Anybody that's making these deals

39:07because first of all, when I finish with

39:09this council member, seated elected

39:11official, I am still a constituent here.

39:14I am still a very very involved

39:17constituent. And that concerns me when I

39:19hear that, that there is no contract.

39:24SpaceX AI is a huge business. They don't

39:27go I guarantee you they don't go

39:29anywhere without some type of an

39:31agreement or contract saying A B C D E F

39:35G. And just to hear that you're

39:37advocating, hell, we all are advocating.

39:39We all want the same thing. We all want

39:42to see the same prosperity and wealth

39:44and economic growth here in this city.

39:46But nothing in agreement really disturbs

39:49me. So I need to hear something a little

39:51bit more solid than that.

39:54Because at this point, as a constituent

39:57and then as a council member, and seeing

39:59the way that business goes here in

40:01Memphis, I don't trust it.

40:04The attack and everything else, I don't

40:06[clears throat] trust any of it.

40:08And so just hearing you say that alarms

40:11me greatly.

40:13>> Understood.

40:14>> I am.

40:14>> Okay, yeah. Real quick, Doug, real

40:16quick. And I And I definitely want you

40:17to respond to that, but Councilwoman

40:19Cooper-Seton, thank you for saying that.

40:21And I And I

40:24I agree. I mean, that's one of the

40:25things that are that's on here. And

40:26Doug, I definitely want you to reply,

40:28but again, this is meeting number four.

40:30And so I think for all of us

40:33like the meeting that we have in 2

40:34weeks, the Monday before Council

40:36Tuesday, like this is why we have a

40:38pause.

40:40So thank you for those comments,

40:42Councilwoman Cooper-Seton, because I I

40:43agree. And these are the things that

40:46that we need to figure out.

40:48All right. Thank you, President McGowen.

40:49Go ahead.

40:50>> Sure, and certainly I understand that.

40:52Um but I I do want to provide some

40:54context.

40:56First, my obligation is to provide

40:58utilities. I provide between 4 and 7

41:01million gallons of water to the

41:02Tennessee Valley Authority's Allen

41:04plant, and I provide that as a They are

41:06a customer. They requested it. I had the

41:08capacity.

41:09When XAI requested water, they requested

41:111.28 million gallons per day.

41:14Uh I had 2 million gallons of capacity

41:17in the street available for them to use

41:19or Electrolux or any other company that

41:22would have come into that building to

41:23use.

41:24So, uh I cannot

41:27just withhold services if I am able to

41:29provide those services.

41:31Uh

41:32Again, the recycled water facility was

41:35contemplated fully five or six years

41:38before XAI ever came on the scene.

41:41Was studied by city engineers, TVA, and

41:43we negotiated with TVA uh and the city

41:46to see figure out how we were going to

41:48build this. We had a design, but neither

41:51TVA nor MLGW nor the city of Memphis had

41:55uh the necessary 200-plus million

41:57dollars with all of the other things

41:58going on to build the recycled water

42:00plant. We decided as a community it was

42:02a good idea to put that into place so

42:05that we could have another source of

42:06water for the Tennessee Valley Authority

42:08to use.

42:14We began talking about this again with

42:15the Tennessee Valley Authority in 2022

42:18when I arrived at MLGW, and we had

42:20progressed down the line on an updated

42:22design, but still we were left with a

42:25200-million-dollar hole and with this

42:28project that we, long before the arrival

42:30of XAI, decided that we wanted as a

42:32community.

42:34And so, no, I do not have a contract

42:36with XAI because I asked them after

42:39providing the utilities that we uh

42:42committed to provide, if they would join

42:44us in building this, and that turned

42:46into

42:47they offered to build it for us. So, let

42:50me be clear, this isn't something that

42:51they were required to do. Wasn't

42:53something that uh that was new. It was

42:55something we were doing and now they're

42:57stepping in to build it for us.

42:58Something that we had to said we wanted

43:01at least 6 years before.

43:03So, I cannot obligate them to spend that

43:06money to build that. It was a desire we

43:08had as a community and much like a

43:10community benefits agreement, they're

43:12providing that benefit to our community.

43:14If it's not ultimately built, we still

43:17have the desire and we'll have to figure

43:18out how to come up with $200 million to

43:20build a facility.

43:22But, I think that's not going to be the

43:24case.

43:25>> All right, thank you for that

43:26explanation. And real quick, when I

43:28spoke with Jamie yesterday

43:30Uh go ahead, Councilwoman Cooper-Suggs.

43:32Sorry, I thought you were done.

43:33>> I'm Yeah, thank you.

43:34No, I wasn't. I still didn't get my

43:37answer. I'm not saying [clears throat]

43:38anything about that I don't do not want

43:40a water facility. My question is you

43:44said that you are committed, you are the

43:46direct person who they are talking to.

43:49That you're the direct person that

43:51making sure that you are focused zoomed

43:53on making sure that this happen. I could

43:56be that person. I can sit in that seat

43:58and do that what you're doing because

44:00it's affecting me, my community, the

44:03city that I love, the city where my tax

44:05dollars are spent.

44:07That's not what I asked you. How do we

44:10know? So, this is what we're doing.

44:12We're doing old school stuff just by

44:14verbal by verbal commitment. That's how

44:17we're doing business now, verbal

44:19commitment.

44:21That's what I'm asking. And my question

44:23was also moving forward we need to

44:28ensure

44:30we need to ensure that we never end up

44:33back here again because we want to do

44:35business with good people that want to

44:37do good business here with Memphis. And

44:40that's why I said that MLGW, once again,

44:44the city, the county, Edge, TVA, we must

44:49plan together for our future customers

44:52that we plan for our any future data

44:54centers that are here, especially with

44:56now that we're dealing with zoning, any

44:58power heavy industrial corridors. I

45:01mean, I'm just saying to hear you say

45:04that is still you went all you

45:07skateboarded all around everything else

45:10in what I asked. You may be the voice. I

45:12could be the voice as well. I could be

45:14there on them like white on rice, just

45:17like you are.

45:19However, what is in writing that makes

45:22us to make sure that the commitment that

45:26I'm not saying that you're not fully

45:27capable of handling.

45:29That's not what I'm saying.

45:32But what I'm not going to do and be a

45:34part of and sit here

45:37as a citizen, not as your city council,

45:39because I don't as a citizen, as a

45:42resident here in Memphis,

45:45and say, "Just because you're the

45:48advocate and you're the voice right now

45:50and you're committed to that, what do we

45:53have in writing?

45:56What no real legit business would do

45:59anything without anything in writing.

46:03A great example, and not to be picking

46:05on anyone,

46:07Spinoza has a transportation business.

46:10I'm not He's not going to Man and I are

46:11not going to just shake hands and say,

46:13"Okay, I'm going to" No, we're talking

46:15about major dollars here, big money

46:19here, dollars, commitment. You're

46:22advocating for it. Great, love it. Thank

46:25God that you're in the seat to do so.

46:27But where

46:28are

46:29contracts, paperwork? And this is how

46:32Memphis usually ends up in a bad

46:35position because of this is what you're

46:38saying now. I don't care a thing about

46:40that. The water facility, I'm sure it's

46:42going to get done. $200 Of course, we

46:45all would know there's a money problem.

46:46But you're saying that you're just going

46:48to be

46:50laser focused on it, and nobody's made

46:53any type of agreement in writing. That's

46:55all I'm asking, that we follow through

46:58with what we say we're going to do.

47:01I I'm not I'm not I don't care about

47:02that.

47:03>> Thank you, Councilwoman. Well, let me

47:05just say real quick, Doug. Councilwoman,

47:07do you have any other questions?

47:11>> Cuz if you Not in Not in Not No. No, you

47:13can go on and move forward. I just need

47:15that [clears throat] particular thing

47:17answered.

47:18>> I appreciate you and everything you just

47:20said

47:20>> I don't need you going Yeah, I'm just

47:22>> Yeah, yeah, no, that's it. I

47:24Yeah, other council members in the queue

47:25for here. We have Councilwoman

47:26>> That's what I'm saying.

47:26>> Yeah, I Yes, ma'am. Absolutely. Doug, do

47:29you want to make a comment? And look,

47:30we're going to continue to talk about

47:31this, right? I mean

47:32>> I didn't mean to suggest that I'm the

47:35only advocate. I was saying that I will

47:37be laser-focused. The mayor's an

47:39advocate for this, too. There is a

47:41contract between SpaceX AI and the city

47:43of Memphis that if it's not built, the

47:45city can claw back the land. So, there

47:47is some things in writing there, but

47:49again, this is an offer of a gift to the

47:53city. I hate to say the word gift, but

47:55we're not paying anything for this.

47:58There is an agreement that will be made

48:00with the city of Memphis for the

48:01provision of the uh effluent so that

48:05they can use it. There's an agreement

48:07between TVA and SpaceX AI for them to

48:10buy the water uh once it is recycled

48:13instead of buying it from MLGW. So,

48:14there are some contractual things in

48:16place. But, there is not a contract

48:19between MLGW and SpaceX AI to build this

48:21thing, nor was it ever contemplated. Um

48:24nor am I the appropriate one to have the

48:25contract with.

48:27>> Got you. All right, we've got

48:28Councilwoman uh Madam Chair Swearingen

48:30Washington just joined us.

48:32Um it was a magic trick from online and

48:35in person. It's pretty amazing. Uh All

48:37right, we've got Councilman Warren,

48:38Councilwoman Logan, and Councilwoman

48:41Walker in the queue. Um Councilman

48:44Warren.

48:44>> Thank you. Just uh these are questions

48:46for TVA and MLGW from the community. As

48:50part of your IRP

48:52and the need for more diversity in a

48:55generation portfolio,

48:58would you guys consider to update the

49:01residential buyback allowance and move

49:04those rates closer to commercial

49:06production pricing?

49:08Currently, if you're residential and you

49:11have solar panels,

49:13you know, you do get paid some money for

49:15that, but it's nowhere close to the rate

49:18that we'd be charging our commercial

49:20customers. So, if we're putting that

49:23back in the system,

49:25and you're looking at that, is there any

49:26way you can think about that in the

49:28future? The second question is, would

49:30MLGW facilitate implementation of a

49:34virtual power plant to aggregate

49:36residential or small business

49:38production? Is that something MLG can do

49:41currently with its contract with TVA?

49:45And I think the final thing I just want

49:46to comment because I agree with

49:49Councilwoman Cooper-Sutton that I feel

49:52horrible sitting here with no contract

49:54on somebody giving us a

49:57water treatment plant, but it was a

49:59donation. So, normally with donations, I

50:02mean, I don't think we have in the past

50:05gone in and someone says, "I'm going to

50:07donate $50,000 to the city." We say,

50:10"Well, give me a contract." We say,

50:12"Thank you for the money." We and we

50:13take it. So, I think that's sort of how

50:15we got in the position we're in because

50:18it was a donation and we were saying,

50:20"Thank you."

50:21And I think when they pulled the

50:24donation, that's when we said, "Well,

50:26this doesn't smell right." So, what's

50:29going to happen? I think the

50:31production's going to start between now

50:33and January. And once they start

50:35building that thing again, I think it

50:37will make a big difference in how people

50:39feel about XAI.

50:41But, they're going to have to do that to

50:42make people feel any better about them,

50:44though. So, the answer to those

50:45questions one and two,

50:59>> net metering in fact it's prohibited so

51:01we're not since we're not a net metering

51:03state that's a something for the state

51:05legislature to work on.

51:07>> Can you explain what that means cuz I

51:08don't understand it?

51:09>> Net metering it means that if you

51:11generate electricity I pay you for

51:12exactly the retail rate at which you buy

51:14it from us. Tennessee does not have that

51:16provision in law and actually does not

51:18permit that so you get the avoided cost

51:21rate which is significantly less than

51:23the retail rate. That's the as

51:25non-technical as I can get but that is

51:26we'd have to change the state statute.

51:28>> So on that um you know I I know we have

51:30lobbyists.

51:31>> That's right.

51:32>> Okay and I know you guys have lobbyists.

51:35I don't know exactly how to write that

51:37or what you think would be a reasonable

51:38thing to take to the state but I would

51:40think that may be one of the things as

51:42we're looking at all this we may want to

51:44take to the state for

51:45>> Sure.

51:46>> to get someone to sponsor this year

51:48particularly if it's going to increase

51:49our capacity to generate here and keep

51:52rates low

51:54that may be beneficial and in the reason

51:56way we keep rates low is instead of just

51:58paying a nominal amount for that

51:59electricity you pay a little bit more to

52:02get more people to want to do it

52:04but since they're doing it and you're

52:06not paying as much for the electricity

52:07as you do any other way you're

52:08generating it that can help keep costs

52:11low. I think that's the the thought

52:12process on that. Is that correct?

52:14>> We're happy to work with you on

52:16structuring some legislation if you'd

52:18like to push that forward.

52:19>> that sounds great. I'd love to do that

52:21and the other the other question was

52:23>> virtual power plant

52:24>> virtual power plant

52:25>> Absolutely we've talked about that

52:26before in the past. We were actually

52:29we have already

52:30uh begun a residential battery pilot

52:33program. We've started that with our

52:34medically vulnerable folks so we've

52:35installed batteries at some homes of

52:38people who are medically vulnerable. The

52:39idea there is that they will have the

52:41hedge of resilience if they are out and

52:43then we'd have additional aggregable

52:45power should we need it. So we're at the

52:48beginnings of that but it's a technical

52:50solution that we are I've talked about

52:52that publicly that that is a desire that

52:54we have to help aggregate

52:57assets that are otherwise idle into a

52:58virtual power plant.

53:01>> All right thank you Dr. Morgan.

53:02>> Thank you very much. Appreciate it.

53:03>> And and a quick

53:05we're an hour in and Jamie, thank you

53:07again. It means a lot to me personally,

53:09but also to the community and council

53:12members that you're

53:13with us today. Today's focus was going

53:16to be on community benefits, meaning a

53:18community benefits agreement and some of

53:19the legislation that we have brought up

53:22and we're still going to get there.

53:23I mean, I could sit here all night long

53:26and talk about this stuff. But I think

53:29you know, when we originally started

53:30this, it was

53:313 weeks ago today and that was before we

53:33had a moratorium in place.

53:36So

53:37you know, Dr. Warren, you mentioned

53:38maybe we meet every other week. I think

53:41all this stuff's too important for us

53:42not to discuss.

53:44We're not going to solve it all today,

53:46but just get trying to get us to stay on

53:48track and get into the meat of that.

53:51Today over the next hour is what I'd

53:52like to to see us do. So, I'm not trying

53:54to rush anybody with their questions,

53:56but I just wanted to put that out there.

53:59And while TVA's here with us, like let's

54:01definitely take advantage of this. So,

54:03we've got Councilwoman

54:05Logan.

54:06All right, and then Councilwoman Walker

54:08will come to you. Councilwoman Logan.

54:12>> Thank you, Chair, and thank you for

54:14really listening. However, I do think

54:16that

54:17what we've been talking about to some

54:19some ways is related to community

54:21benefit, particularly the um

54:24the water treatment facility. That's a

54:26huge benefit for the community and for

54:29protecting our aquifer. So, I have one

54:31little comment on that. I do I do share

54:34Councilwoman Cooper-Suggs' sentiment and

54:36how we feel about it. I also understand

54:39that

54:40President McAllen is not um responsible

54:43for the um

54:45contracting for the city, but I wonder

54:49if and some even some of I got this from

54:53a question from

54:54a constituent as well.

54:56Is there any recourse we have in maybe

54:59curtailing

55:01um

55:03uh let me say that, curtailing like

55:06water space if water consumption or

55:09water consumption or some type of once

55:11they agree to it,

55:13you know, it became somewhat of a verbal

55:14contract or something,

55:17you know,

55:18them saying, "Okay, we're going to do

55:19that." And everybody was in, you know,

55:21in favor of it at that point or felt

55:24that that was a good compromise or good

55:26gift, but now, you know, taking it back

55:28or "No, I'm not going to do it. I'm

55:30going to do it." And then all of this,

55:31you know, that we can't be in that

55:33position. So, is it possible that we

55:35could consider

55:36putting something in place to maybe

55:38curtail water consumption until it's

55:40done if, in fact, it gets to a point

55:42where say they start and they stop or

55:44whatever. So, you don't have to answer

55:46now, but I I would like to have further

55:48conversation maybe at at committee or

55:51something if we need to move on. I did

55:53hear

55:54um Chairman Espinosa say that. So, if

55:56you need to respond

55:58later, I I don't I don't want to rush

56:00the conversation is what I'm saying. So,

56:02thank you and I'll yield back, Chair.

56:04>> All right. You want to make a a brief

56:05comment on that or we'll just wait hold

56:06up to the next

56:07>> talking to Councilwoman Logan on that

56:08later.

56:08>> All right. Perfect. Um

56:10so, uh President McGowan said I'll talk

56:12to Councilwoman Logan and then we'll

56:14bring it back up just for follow-up

56:17publicly.

56:18Councilwoman Walker.

56:22>> Good afternoon, everyone, and thank you

56:24all for um

56:26coming out today. So, I tuned in a

56:28little late and I was wondering about

56:30the the conversation. I thought it was

56:32community benefits, but um

56:35anyway, my questions, so I have a couple

56:39um

56:41And so, this is where I want to start.

56:43I'm going somewhere with this. It's not

56:44going to take me too long, but um

56:47Mr. um President McGowan, can you

56:50briefly share what a direct line

56:53service agreement is?

56:56>> So, direct serve, that's a TVA agreement

56:59to directly serve uh

57:01typically a large load customer. So,

57:03Jamie can probably talk about what that

57:05is, but there is a decision that is made

57:07between the MLGW engineers and TVA

57:09engineers about who is the most

57:12appropriate service provider based on

57:13the infrastructure that we have

57:14available. And so, if the decision is

57:17that TVA is best positioned to provide

57:20direct service to that customer,

57:22then we defer that over to TVA. So,

57:24Jamie, I don't know if you want to fill

57:25in on that.

57:28>> No, that that that's correct. And um

57:31it's that all same all requirements

57:33contract with the direct serve customer.

57:35So, that's correct.

57:37>> Okay, thank you for that. And then

57:40um

57:42And that's when the customer is over how

57:45many megawatts?

57:47>> Well, it can actually be any level of

57:49megawatts. We're just The limit that

57:52MLGW can serve is about 850 megawatts

57:55based on our system. Anything above

57:57that, TVA has to directly serve.

58:00Anything below that that's a large load,

58:02we will look at the proximity of the TVA

58:05transmission system, the proximity of

58:07the facilities that they have to that

58:09area, and we'll also look at the cost

58:12for us to upgrade the

58:15distribution system versus the cost for

58:16TVA to upgrade, and then a decision will

58:18be made about what the most

58:19cost-effective way is to do that.

58:24>> Okay, thank you for that. And then

58:26um behind the meter, is this the exact

58:29same thing? Is Are these Is this

58:32language used interchangeably or is

58:35behind the meter I just want to be clear

58:37cuz I was going somewhere with this. And

58:39And I'm trying to share this

58:42accurately with constituent constituents

58:44as certain questions come up.

58:47>> So, behind the meter means simply

58:51um

58:51the power comes into your facility and

58:54is metered as you use it. Uh the analogy

58:57I'll give here is um if you were

59:00your house you're running your house

59:01based on MLGW energy that's coming

59:03through the meter, and you decide that

59:05you want to

59:07uh do a backyard barbecue with an

59:09electric grill, and you start up your

59:10portable generator, um you're not using

59:13my electricity, you're using something

59:15uh that is behind my meter. You're still

59:17getting electricity, but not from me.

59:20So, behind the meter means you have

59:22additional source of generation

59:24um that is producing electricity you're

59:26using, but it's not coming from TVA or

59:28MLGW.

59:32>> So,

59:33SpaceX AI, they are behind the meter,

59:36correct?

59:38>> No, ma'am. They have a service agreement

59:41with MLGW to receive a certain amount of

59:43power.

59:44They have a service account a power

59:46contract with TVA to receive a certain

59:48amount of power. And then, they are, in

59:51the case of Colossus one, they're

59:52receiving 150 MW from MLGW, and then

59:56they're generating the other 150 MW

59:58behind the meter.

1:00:00About this December or January, that

1:00:02will cease, and they will begin

1:00:03receiving all of the power from MLGW.

1:00:07Um and they will not be generating

1:00:08behind the meter any longer.

1:00:12>> I just might add to to that just

1:00:14>> [clears throat]

1:00:15>> um

1:00:16looking at kind of data centers more

1:00:17broadly, um to the point that was just

1:00:20made, there's kind of a decision, how

1:00:22much does a um

1:00:24project want to generate on site uh

1:00:27versus how much to to pull from the

1:00:29grid, and that that's the distinction

1:00:31between behind the meter generation to

1:00:34serve

1:00:35uh load of a site versus what is

1:00:37included in a power contract to

1:00:40uh receive power from the grid.

1:00:43>> So,

1:00:45what's in the power contract? Is that

1:00:47public information? Is this the power

1:00:49contract with you all or with MLGW or

1:00:52both?

1:00:55>> Could be could be a power contract with

1:00:57MLGW or could be a power contract with

1:00:59TVA depending on

1:01:01on the size of the installation.

1:01:04the project.

1:01:10>> Okay, thank you. I yield the floor.

1:01:14>> All right. Uh

1:01:16it's a quick question.

1:01:17>> Dr. Warman, super fast question, sir,

1:01:20please.

1:01:20>> Super fast. We talked about the

1:01:23the the

1:01:24preemption, you know, trying to be able

1:01:26to

1:01:27uh get

1:01:29>> [clears throat]

1:01:29>> us to have local power producers, people

1:01:32have

1:01:34you know, their solar panels or whatever

1:01:35paid. MLGW can't do anything about it

1:01:39because it's a Tennessee company. Can

1:01:41TVA do something about it since the

1:01:44federal company that will uh negate the

1:01:47need to go to Nashville and get the law

1:01:49changed? Is there any way TVA could come

1:01:51to our rescue in this case?

1:01:55>> We'll have to look at it.

1:01:56>> Is this referencing

1:01:58>> This is referencing the net metering

1:02:00with residential solar. So,

1:02:02TVA's authority kind of stops at the

1:02:04transmission level where they deliver it

1:02:07to us and then MLGW is the local

1:02:09distributor. So, that's that controls

1:02:11the power that comes back to the local

1:02:13distributor, but

1:02:14your question is a good one and bears

1:02:16further discussion about how we best

1:02:18approach that if that is a desire of the

1:02:20community, then how do we best approach

1:02:22that to to get what we're what we're

1:02:24desiring?

1:02:24>> Thank you, Mr. Chair. Thank you. Thank

1:02:26you, gentlemen.

1:02:27>> Thanks. And Jamie, again, thank you for

1:02:29being here and I do want to say as a

1:02:30Memphian, I was excited and I'm thankful

1:02:34that Mitch Graves is the chairman of

1:02:36your your board. They had their first or

1:02:39he had his first board meeting here in

1:02:40Memphis.

1:02:42Um I'll always remember it because I had

1:02:44COVID and watched it from home,

1:02:47but yeah, I'm thankful for that and I

1:02:48just wanted to say that publicly. I want

1:02:50to segue

1:02:51the body

1:02:52um over to and I'm going to say

1:02:55community benefits and Councilwoman

1:02:57Logan said it earlier, those are two

1:02:58words that

1:03:00that have um

1:03:02all of this is about community benefits.

1:03:05Like our jobs are, right? I mean,

1:03:06everything we've talked about is a

1:03:08community benefit. We're trying to

1:03:09protect people and provide community

1:03:11benefits.

1:03:12But I had we had a

1:03:14citizen ask a question today.

1:03:18Um he asked me a question online and I

1:03:19want to answer it and it and I think it

1:03:21provides a real good opportunity to to

1:03:23talk about that word because I think

1:03:26that word gets lost in translation right

1:03:28now as we're talking about all this. So,

1:03:30hopefully

1:03:31you know, that'll help with this

1:03:32conversation. But, the question was,

1:03:33"How will the council hold XAI

1:03:36accountable to actually build the safety

1:03:38infrastructure they have promised, i.e.,

1:03:39gray water facility?

1:03:42It continues to look like lots of

1:03:43suggestions, assurances, and promised

1:03:45action without any real enforcement."

1:03:47So, to the individual that asked this

1:03:49online,

1:03:51we've talked about some of this today

1:03:53and I don't

1:03:54you know, I don't think we have the time

1:03:56to answer that super specifically.

1:03:58Probably not as much as you would like.

1:04:00So, let's continue that conversation,

1:04:02but I do want to point

1:04:05that gentleman and the public to again

1:04:07the website we created. We posted the

1:04:09letter that's been referenced like a

1:04:11dozen times in the past

1:04:134 hours of committee hearings. It is

1:04:15available for everyone to read.

1:04:17Um, my understanding is the gray water

1:04:20facility I I was never informed. I don't

1:04:23think anybody was that it wasn't

1:04:24happening.

1:04:25But, there's a lot more information, um,

1:04:28you know, that you can just read

1:04:29yourself and it's it's a a letter that

1:04:31was sent to us

1:04:32and we just posted it out there for

1:04:34people to read. So, I would direct that

1:04:35gentleman. I want to thank that person

1:04:37for the question. I know all council

1:04:38members are getting all types of

1:04:39questions. We're not going to answer

1:04:41them all today, but we're going to get

1:04:42to them. That's what we're doing.

1:04:44Um,

1:04:46so, there's the the word community

1:04:48benefits real quick. Jamie mentioned

1:04:50that yesterday because he saw community

1:04:51benefits and he's aware of of what the

1:04:55difference is when we say that word. So,

1:04:58three things on community benefits.

1:05:01The question that I got was about the

1:05:0325% of tax revenue going neighborhoods.

1:05:06How is that being spent? You know, is

1:05:08that part of the community benefits

1:05:09agreement? So, here it is. It's really

1:05:10three things, okay?

1:05:1325%

1:05:15of the SpaceX taxes that are being paid

1:05:17into the city of Memphis are required to

1:05:20go to the community within a 5-mile

1:05:21radius of their sites.

1:05:24This is already happening. Like we've

1:05:26already I believe we've already

1:05:28that that was approved and now we're

1:05:30waiting for the mayor

1:05:32I believe to send us I'll tell you what

1:05:34Chief Winton if y'all want to I feel

1:05:35like we're segueing into community

1:05:37benefits and Chamber thank you for being

1:05:39here Bobby if you want to

1:05:40come up with you know I have a feeling

1:05:42you're

1:05:43going to want to say something soon here

1:05:45as we transition into this.

1:05:47So again community benefits three things

1:05:49are happening, okay?

1:05:52And again it's all community benefits

1:05:53but 25% of the of the city of the taxes

1:05:56paid into the city by SpaceX they are

1:05:58required to go into the community within

1:05:59a 5-mile radius of their sites. That is

1:06:02real. That is happening.

1:06:05And we're essentially waiting for I

1:06:07believe the administration to give us

1:06:08their suggested

1:06:10chop up of that for lack of a better

1:06:11term.

1:06:12Independent of that I have I just put

1:06:15this down check out the SpaceX a

1:06:18letter that is online.

1:06:21I know

1:06:23I think the Fairley gymnasium I mean

1:06:25this is another community benefit like I

1:06:27think they paid for a

1:06:28a gym

1:06:30I believe and I'm looking at Winton I'm

1:06:31looking at anybody. I want I think it

1:06:33was three and a half or four or three

1:06:35million dollars those are totally

1:06:36separate community benefits so there's

1:06:39benefits so they're doing stuff outside

1:06:40of

1:06:42of taxes is is one I think that's

1:06:45community benefit.

1:06:47The other stuff that they're doing on

1:06:48standalone basis

1:06:50um

1:06:52uh I think it's on their website.

1:06:54Um

1:06:55you know ask us those questions I need

1:06:57to be better versed in that but you know

1:06:59I'm not

1:07:00I'm not uh you know they're doing things

1:07:02around the community I know that and I I

1:07:04know the Fairley gymnasium thing was

1:07:06something that I saw.

1:07:07And then third the point of today's

1:07:09meeting

1:07:10community benefit is the community

1:07:12benefits agreement which is

1:07:14something that we're trying to pass from

1:07:16a legislation standpoint. I had it in my

1:07:18ordinance. Dr. Warren you know presented

1:07:21one to us and we're working through that

1:07:23and that's where we actually come up

1:07:24with with a legal document and a piece

1:07:27of legislation.

1:07:28And that was really we're an hour and 15

1:07:30minutes into it, but that was the agenda

1:07:32item for today. But [laughter]

1:07:34I think it's great. I hope that made

1:07:36sense. I mean that work community

1:07:37benefits

1:07:38it's sprinkled all throughout this,

1:07:40right? But I mean

1:07:41you know, there are differences there,

1:07:43right?

1:07:43Um so with that, you thank you Chief

1:07:46Wynn for being here. Uh

1:07:48Bobby, thank you for being here. And Dr.

1:07:50Warren, I know you wanted to speak

1:07:52um

1:07:53on the piece of legislation that you

1:07:55presented and I will be quiet and listen

1:07:57to the body work.

1:08:00>> Thank you, Mr. Chair.

1:08:02Um

1:08:04we are hoping that we can put together

1:08:07by the time um

1:08:10end of the year uh

1:08:12legislation

1:08:14that directs our P&Z and planning

1:08:18departments to begin developing

1:08:22regulations that allow us to regulate

1:08:25data centers as they come in based on

1:08:27what our powers are as a city

1:08:30and our powers as a council to be able

1:08:32to do that.

1:08:34Um

1:08:34>> And and again, for the record, we're in

1:08:36planning and zoning because that is like

1:08:38the core thing we we can control.

1:08:39>> And that's why we're here because that's

1:08:41the one way that we're going to actually

1:08:42be able to control data centers. But the

1:08:45other issue is I think there's a uh

1:08:49there's a desire for data centers to

1:08:53come in and try to help the community as

1:08:56they come in and build. And there's no

1:08:59mechanism by which data centers can do

1:09:02any more for us than pay property taxes.

1:09:05That's all we can really collect at this

1:09:07point. Uh the

1:09:09when I first looked at this, I was

1:09:11thinking, "Well, what if we just said,

1:09:13you know, um you go ahead and for all

1:09:15the for this amount of power, you know,

1:09:18we want to tax you for it and we want

1:09:19you to pay extra." We don't have the

1:09:22authority to tax.

1:09:23>> Enter the community benefits agreement.

1:09:26>> Which is why the community benefits

1:09:28agreement or agency

1:09:30>> Just real quick. I'm sorry. When that

1:09:32work community benefits comes up, it

1:09:33means like a myriad of things to

1:09:35different people.

1:09:36And I'm not trying to speak over you or

1:09:38anything. I just I really want us to

1:09:39understand

1:09:40>> a tag team here today.

1:09:41>> community. Like everything's a community

1:09:43benefit, hopefully, right? But like

1:09:45community benefits agreement, okay.

1:09:47>> Okay, and this would be a community

1:09:49benefit agency, which is a little bit

1:09:51different. An agreement is is is where

1:09:54you say

1:09:55we agree that we're going to pay you

1:09:56this. But if we do that, that's taxation

1:10:00based on the current way the laws read

1:10:02in the state according to Allen. So, we

1:10:04can't do that. It's illegal for us to do

1:10:06that.

1:10:07The community benefit agency is a little

1:10:10bit like the airport authority. It's

1:10:12going to be its own independent

1:10:14nonprofit. It will have its own board.

1:10:17How that board is developed and who

1:10:19appoints whom will be part of the

1:10:21legislation that we ask for when we take

1:10:24it into Nashville. So, we're going to

1:10:25need to have a pending legislation that

1:10:29does says what we want it to do, and I'm

1:10:30sure it's going to be changed when it

1:10:31gets to Nashville a little bit. But I

1:10:33mean, we're going to want the council,

1:10:34we're going to want the mayors, we're

1:10:36going to want the commission to appoint

1:10:38people. We're probably going to want to

1:10:39have a couple people appointed by the

1:10:41chambers, some people just uh community

1:10:44members that are appointed. And I

1:10:45imagine the state may want to appoint a

1:10:47couple representatives to this. Uh and

1:10:50what it would do is it would essentially

1:10:52be the clearinghouse

1:10:54for agreements that it would make with

1:10:58people coming in

1:11:00bringing large data centers. And to

1:11:02bring a large data center, part of the

1:11:04agreement coming in would be for every

1:11:0780,000 kilowatts were you know, or

1:11:10megawatts, we're going to give you a

1:11:11$80,000. Some here, whatever it is. You

1:11:13know, we'll come up with uh I think

1:11:15other people have given numbers, and I

1:11:17think you had that in your

1:11:18>> So, in my ordinance, it was an airport

1:11:20authority type creation. And so anyways,

1:11:22the public is watching this, talk about

1:11:24this, and learn all this together. We've

1:11:25got experts. The gentleman that was here

1:11:27last week had

1:11:29awesome recommendations and has seen it

1:11:31work in other parts of the country. So,

1:11:32yes, that's what we're doing right now

1:11:34just for the public to know. We're

1:11:36working through that.

1:11:36>> So, what we're hoping to do with this is

1:11:39to create legislation that will go to

1:11:42the state where we will ask them for

1:11:45permission to set up this agency.

1:11:48And once this agency is in place, then

1:11:51we go to future, and in my mind, current

1:11:56uh data centers and say, "Please come on

1:11:59board. Help us with this." And the money

1:12:01that comes into this can then be used

1:12:03for

1:12:05all sorts of things, but primarily I

1:12:07think we're going to set it up to where

1:12:08it's used for the things that the city

1:12:10does.

1:12:11You know, it's going to be used for

1:12:12paving [clears throat] roads. It's going

1:12:14to be used for helping people get their

1:12:17roofs fixed. It's going to be used for

1:12:18after-school programs for kids, maybe

1:12:21pre-K for all, things that the city has

1:12:24been doing. And as a city body, then we

1:12:27would request from that agency, "We

1:12:30would like this to be spent here."

1:12:33And we can set it up to where A, it

1:12:35could have its own authority to grant,

1:12:37but I think ideally, in order to keep it

1:12:40under control to where citizens feel

1:12:42like they've got a little bit more

1:12:44invested, all of its disbursements

1:12:48should hopefully come through the

1:12:49council once they make it and then get

1:12:51council approval. But that way you've

1:12:53got a checks and balance on them and

1:12:55they have a checks and balance on us for

1:12:57spending it cuz they won't give it to us

1:12:59if they don't want to. And when they do,

1:13:01we have to make sure it's spent the way

1:13:02it's supposed to. And we can ask them.

1:13:05So, I mean, I I think that it's going to

1:13:07be a balancing act as we build it, but

1:13:09other places have done this. I think

1:13:11cities in Virginia now have no property

1:13:14tax. So, you're thinking we're trying to

1:13:16attract people to Memphis and let them

1:13:18know how cool we are and what a great

1:13:20place it is to live. All of a sudden,

1:13:22we're able to use this and lower

1:13:24people's property tax as to where we're

1:13:26no longer the highest tax city. Coming

1:13:29here is going to be cheaper for you. And

1:13:32now we're have ability to help people

1:13:35start to build low-cost housing or new

1:13:37housing in areas that need to be

1:13:39redeveloped. So, this could be a

1:13:41[clears throat] huge potential boom for

1:13:44how we jump-start uh

1:13:47everyone realizing we're cool

1:13:50and we're so and we're rock and roll,

1:13:52you got to come to Memphis.

1:13:54>> All right, thank you uh Councilman

1:13:56Warren. Uh Bobby,

1:13:59the Chamber, thank you for being here.

1:14:02Thoughts? Comments?

1:14:04>> Uh thank you uh Councilman and and thank

1:14:06you all.

1:14:07>> excuse me.

1:14:07>> Uh Bob- Bobby's fine. Mr. White remind

1:14:09me of my late father. God bless. Uh so,

1:14:11uh thank you all so much uh for the

1:14:13opportunity to be here. Um I do want to

1:14:15just generally speak. I did have a

1:14:17presentation, but uh uh regarding um

1:14:19Councilman Warren and his comments, I

1:14:20think the what of it is one thing, but

1:14:22the how of it is the way we get there,

1:14:24which is why the legal advice um

1:14:27ensuring that we are engaging even with

1:14:30um

1:14:31the way we have to think about it as it

1:14:34relates to Nashville and and of course

1:14:36um I'm a lobbyist. Members of my uh team

1:14:39at the Chamber are lobbyists. We have a

1:14:41lobbying team in Nashville. We work with

1:14:43them. I think the thing that we have to

1:14:44consider is that even when we are going

1:14:47and making these acts in Nashville and

1:14:50working through the sausage making of

1:14:52figuring out something that could be

1:14:54beneficial, we have to think about a

1:14:56tool or something that is ultimately not

1:14:59just useful to us in Memphis and Shelby

1:15:00County, but is ultimately useful in

1:15:03other communities around the state if in

1:15:05fact we want the type of buy-in uh that

1:15:07we want to uh be considered. So, again

1:15:10to your point um Councilman Warren, I do

1:15:12think that the what of it all is what we

1:15:15all want, but the how we get there is

1:15:17going to be the thing that requires um

1:15:19the shared uh thought partnership and um

1:15:22members and other people who bring that

1:15:24expertise. I want to also say this. We

1:15:25have investors with the Chamber who

1:15:27bring tremendous expertise that I think

1:15:30um uh could be beneficial to us in this

1:15:32space because they are working in

1:15:33communities like some of the ones you've

1:15:35mentioned.

1:15:35>> So I I if you don't mind, let me um and

1:15:39I think you were done with questions. So

1:15:40Mr. White, also known as Bobby, sorry.

1:15:43Uh I'll call you Bobby.

1:15:45Um

1:15:46I worked there for a for a little while,

1:15:47right? So I feel like if you don't mind,

1:15:50would you

1:15:51explain in 30 seconds the Chamber of

1:15:54Commerce

1:15:56regarding government funding and what I

1:15:58think is your most powerful tool just

1:16:01like a city or a family is the people

1:16:04and their strengths because there are

1:16:07Chamber members that have relationships,

1:16:09I believe, I know in Nashville. And it's

1:16:12going to help us with this.

1:16:13>> Absolutely. If we can show the first

1:16:15slide outside of this opening slide, the

1:16:16first the next slide because that is

1:16:19would help me to frame that conversation

1:16:20to answer your question, Councilman, who

1:16:22we are, what we represent. I was here at

1:16:24the mayor's office some years ago when

1:16:25the Chamber actually came off of

1:16:28receiving funding from the Memphis City

1:16:30Council for

1:16:32its operations. So it is 100% business,

1:16:36not just business lead, it's business

1:16:37funded with no government funds. That

1:16:40allows a certain amount of independence.

1:16:41I do also want to say this that those

1:16:44investors who invest in the Chamber,

1:16:47they we are the tip of the spear when it

1:16:49comes to business recruitment and

1:16:51retention and we are funded by business

1:16:53leaders. I think that's worthy of being

1:16:55mentioned. But I do want to also mention

1:16:57something, it may not even be

1:16:58represented in this slide, but um

1:17:01there's been a thing that has I've heard

1:17:04recently uh and and NDAs and

1:17:08confidentiality. Let me claim that

1:17:10because I keep hearing it being put off

1:17:12on Council members and I know that is

1:17:14not you all's thing. NDAs and

1:17:16confidentiality is critical to our

1:17:18business. There's not a economic

1:17:20development organization in the nation

1:17:22that is serious about what it does that

1:17:25is not signing NDAs. So that is part of

1:17:27what we do, preserving the confidence of

1:17:30those that we attempt to recruit as we

1:17:32try to get them to consider Memphis as

1:17:35choosing to be here. So,

1:17:37I hope that maybe takes a little

1:17:38pressure off of some of you all who have

1:17:40been asked these questions, knowing you

1:17:42are not the ones who sign NDAs. We are

1:17:44the entities and the I can lose my job

1:17:46for sharing things that

1:17:48may reveal because I am under NDA.

1:17:51>> All right, thank you. We've got

1:17:52Councilwoman Walker, Councilwoman Logan

1:17:55and the queue, and Councilwoman

1:17:56Cooper-Sutton.

1:17:57Uh

1:17:59Councilwoman Walker.

1:18:02>> Thank you.

1:18:03Um

1:18:04So,

1:18:06as you started this segment, you had

1:18:08mentioned about the three um the taxes.

1:18:11So, that is a community

1:18:13benefits ordinance, not to be confused

1:18:16with community benefits

1:18:19agreement,

1:18:20and not to be confused with community

1:18:24benefits

1:18:26agency. And I just want to share that,

1:18:29and

1:18:31um you had used the term about

1:18:35it being chopped up or not last week.

1:18:37So, I text you the breakdown of

1:18:41the funding, how the funding will be

1:18:43appropriated with respect to what we

1:18:45approved last week, the community

1:18:48benefits ordinance. And that information

1:18:50was shared

1:18:52with us

1:18:54um

1:18:54last week.

1:18:56>> Thank you.

1:18:56>> And then secondly, you Yeah, and

1:18:59secondly, you said something about um

1:19:02Fairley. So,

1:19:04under Brent Mayo, he identified four

1:19:07schools

1:19:09two each within

1:19:12a 5-mi

1:19:14radius of the two locations, and one was

1:19:18Fairley.

1:19:19Um

1:19:22And God bless him, what he desired to do

1:19:25and intended to do, um

1:19:27that did not happen. And with respect to

1:19:29the funds that were appropriated,

1:19:34the I'm not saying that it was um

1:19:37um

1:19:39um Mr. Richmond and or the board, but

1:19:43these funds that were designated

1:19:46for schools in the 5-mi radius of the

1:19:49two locations,

1:19:51all of these funds did not go

1:19:55to the intended schools in the 5-mi

1:19:58radius. They went to some

1:20:00other schools out of the area

1:20:03and I won't go so far as to say they

1:20:06have misappropriate a misappropriated

1:20:09XAI fundings, but you all can call it

1:20:11and identify however

1:20:14you choose and I do feel,

1:20:17um,

1:20:18that that is unfortunate. And then what

1:20:20was the third one? Did So, let me Well,

1:20:22let me finish number two. So, number

1:20:24two,

1:20:25um, there was a hold up

1:20:28at the board, um, with them signing the

1:20:30MOU and I'm I still don't know what that

1:20:34was about, but in writing it ended up

1:20:38being

1:20:39an in-kind donation as I understand and

1:20:43I know as a council,

1:20:45um, specific specifically to you, um,

1:20:49Councilman Warren, I know that we just

1:20:51can't receive funds directly

1:20:54from them, but they are able to

1:20:57give funds directly

1:21:00to

1:21:01individuals, organizations, and entities

1:21:04as they choose dependent on the nature

1:21:07of that

1:21:09that entity

1:21:11and I think

1:21:14I think that it would benefit

1:21:17everyone concerned,

1:21:20um, SpaceXAI,

1:21:23the chamber, the council,

1:21:26the mayor, everybody involved in this

1:21:29equation, if SpaceXAI

1:21:32was willing to share

1:21:35what all they have done in the community

1:21:37so far,

1:21:38with whom,

1:21:40and the dollar amount cuz that would

1:21:44take some heat off of all of us as we

1:21:47are constantly hearing people barking

1:21:50about

1:21:51what they need to be doing, what they

1:21:53should be doing, and I'm not disagreeing

1:21:55with that, but they're doing things

1:21:57already. So, if we're advocating for

1:21:59them to

1:22:01purchase some oranges and they have

1:22:03already purchased some oranges, maybe we

1:22:05need to pivot that and advocate

1:22:09that they need to be

1:22:11purchasing some apples, and I understand

1:22:14the I

1:22:16my perception of the secrecy around this

1:22:19is that because of the lack and the lack

1:22:21of resources

1:22:23that people are afraid either they don't

1:22:26want to be criticized for taking funds

1:22:28from XA Space XAI and or it's just so

1:22:33much lack

1:22:35and need in the community. People are

1:22:37afraid to share that they got something

1:22:40cuz they might be afraid if they what

1:22:42they have received or could be receiving

1:22:46in the future

1:22:48could be

1:22:49affected.

1:22:51And I just wanted to share that. And

1:22:52then, what was number three, Councilman

1:22:54Espinoza?

1:22:55>> You know, thank you, Councilwoman

1:22:56>> stand-alone.

1:22:58>> Yeah, so I had down and again, this is

1:23:01due to

1:23:02two questions that really just confused

1:23:04and muddled all of this. So, I was

1:23:05saying community benefits one, 25% of

1:23:08the Space XAI taxes are going directly

1:23:10to the community within a 5-mi radius.

1:23:13Number two was to check the letter that

1:23:15we posted online, and I mentioned

1:23:17fairly, but I don't have the details,

1:23:18similar to what you just said.

1:23:21I think it was three I have I wrote down

1:23:223.6 million.

1:23:25But I don't know that that's accurate.

1:23:26And then, the third thing was totally

1:23:28stand-alone from those two was a

1:23:30community benefits agreement, and you

1:23:32just corrected me appropriately because

1:23:35there's the community benefits agency

1:23:37that we need to implement some sort of

1:23:39community benefits agreement. So, that's

1:23:41all I got for you. If I said something

1:23:43else, sorry.

1:23:45>> Okay, and then um and then I just had

1:23:48one more thing on on this. So,

1:23:51with respect to Fairley, they did

1:23:54renovate they they did

1:23:57renovate the gym and

1:24:00the week the Friday of the October 6th

1:24:04meeting, that Friday there was supposed

1:24:07to have been a ribbon cutting

1:24:10that

1:24:11uh for the gym that got canceled and I'm

1:24:15still waiting to

1:24:18hear back. I did I did reach out to um

1:24:22SpaceXAI and they they sent me something

1:24:25about the cancellation, but they didn't

1:24:27know why they didn't know why it had

1:24:30been um

1:24:32canceled. So, with that, I will pause

1:24:35and yield the floor.

1:24:37>> Thanks.

1:24:38And Bobby, thank you for being here

1:24:40today. We asked you to be here because

1:24:41we will appreciate the help from your

1:24:44members as we get in Asheville and then

1:24:46Chief Winton, thank you for being here

1:24:48today. He's watched every minute of all

1:24:50these hearings and we caught up last

1:24:53week again with the website that we

1:24:55created and Penelope and the team helped

1:24:57us with that.

1:24:59Uh

1:24:59and I've said this multiple times, too,

1:25:01right? We started the hearings 3 weeks

1:25:03ago and then the mayor announced his

1:25:0490-day plan and I feel like it's really

1:25:07good timing. This is all before we had

1:25:10passed a moratorium and so, I'm here to

1:25:12support you and the mayor on that 90-day

1:25:14plan and I if you don't mind, will you

1:25:16expound on that a little bit and

1:25:19anything else you want to share?

1:25:20>> Yeah, absolutely. Uh and thank you for

1:25:23that. Obviously, with the announcement

1:25:25of the executive order,

1:25:27uh we just want to get to work hand in

1:25:28hand right with you.

1:25:30Um one of the things that stepping back

1:25:33looked at was looking at all of the

1:25:35presenters and the information that's

1:25:38come before council over the last 2

1:25:41years. Like 27 distinct presenters.

1:25:45Um and so, as we were talking,

1:25:47Councilman Espinosa,

1:25:49we actually have assembled a full data

1:25:51repository of every presenter, every

1:25:54expert, and it coupled with all of the

1:25:58things we're hearing from the community

1:26:00to actually start to correlate those

1:26:02data points.

1:26:04And then get right to work to the things

1:26:06that we're hearing, starting with the

1:26:09two, you know, main impacted communities

1:26:12being Boxtown and Whitehaven. Obviously,

1:26:15you heard about with Whitehaven, the

1:26:17thing we heard the most right out of the

1:26:19gate was the traffic, and what's going

1:26:21on right there with John P. Freeman.

1:26:24Excited to see progress being made.

1:26:26We're not We don't have the victory flag

1:26:29up yet, but I will say that once we

1:26:31reached out to SpaceX AI and said,

1:26:34"Here's the problem. Let's sit down and

1:26:35talk." With our city engineers,

1:26:38one of the things to note for everyone

1:26:40for the record, they rerouted traffic

1:26:43within. So, as trucks come in delivering

1:26:46during this major construction period,

1:26:48those trucks now are rerouted out on

1:26:51Stateline Road, where they used to be

1:26:53able to exit on two lane. So, the

1:26:55reduction in traffic that John P.

1:26:57Freeman school saw right out of the gate

1:27:00was actually that. So, now we're dealing

1:27:01with the the the trucks that are getting

1:27:06the word late. But now we have sky cops

1:27:09out there and cameras. So, we are now

1:27:11following up with those individuals. So,

1:27:14that was kind of first step there. And

1:27:16then in Boxtown, one of the things we

1:27:18heard clearly was,

1:27:20and this goes right back to the

1:27:21community benefit ordinance,

1:27:23"We need our homes fixed." I mean, it

1:27:26was very clear. I actually spent time

1:27:28spent time walking up and down East

1:27:31Boxtown Road because I was actually

1:27:33baptized in Boxtown as a kid. So, it's

1:27:36like, "You know what? Let me go out here

1:27:37and talk with people on the ground and

1:27:39hear what they're saying." And just as

1:27:41the survey said, home fixing our homes

1:27:44was number one on the list. So, the

1:27:46dollars that are allocated there, you

1:27:48know,

1:27:49Deputy Chief Walls on my team is now

1:27:52serving point. She's literally living

1:27:54over there with the HCD team right now

1:27:57cuz we're going too fast, you know,

1:28:00I don't want to say fast track cuz we

1:28:02won't skip any of the administrative

1:28:04processes, but we're going to make them

1:28:06happen swiftly and start getting making

1:28:08that happen for that community. And then

1:28:10when we do our first community

1:28:12stakeholder meeting, it will be there

1:28:15to talk about what's happening, what

1:28:17they need, and address that short list.

1:28:20Also, you know, just to to know,

1:28:23obviously with the executive order

1:28:25coming out, a little bit and not sure if

1:28:28everybody knows my actual background. I

1:28:30mean, my degree field is actually

1:28:32information systems. I spent my time

1:28:35growing up actually building server

1:28:37farms for FedEx and ran data centers

1:28:41globally. So, you know, it's one of

1:28:43those now how do we take this knowledge

1:28:46and everything that we've compiled and

1:28:48start to translate that into, you know,

1:28:50this is fact, this is fiction and

1:28:52helping our communities understand the

1:28:54difference

1:28:56and what's happening. So,

1:28:58working, you know, I've started to call

1:29:00some of my

1:29:02global CIO Fortune 100 colleagues and

1:29:06and also the data centers they sit

1:29:09outside of Memphis and talk about

1:29:12responsible data centers and that model.

1:29:15And what's interesting is you start

1:29:16looking at the data points that are

1:29:18coming out from that. They actually

1:29:20correlate with what we're hearing from

1:29:22our environmental justice teams.

1:29:24>> Hey, and I want to just chime in because

1:29:26Jamie, I don't think he's on the call

1:29:27anymore, but he referenced it

1:29:30TVA has led the country

1:29:33on this stuff and I think that's

1:29:36that's a really good thing for us to

1:29:37have. I mean, you know, we're part of

1:29:38that. Like we're leading on something

1:29:40and that's a good thing.

1:29:41>> Yes.

1:29:42>> Um

1:29:43Go ahead.

1:29:44>> Sorry.

1:29:44>> No, so I just want to say, you know,

1:29:46there's activity activity happen. You'll

1:29:48start to to more about that on next

1:29:51Friday, but it's working right in tandem

1:29:54with the council and this team.

1:29:58>> Uh we've got Thank you, Chief. We've got

1:30:00Councilwoman Logan Cooper Sutton and

1:30:02then Walker again. And I've got a staff

1:30:05for 25 more minutes.

1:30:07And then we'll be back here again in 2

1:30:09weeks. We're going to continue to do

1:30:10this. We'll go ahead, Councilwoman

1:30:11Logan.

1:30:14>> Um one thing that I [clears throat]

1:30:15wanted to note, um I'm not sure which

1:30:18committee it's for which benefit

1:30:20community benefit agreement fund, you

1:30:23know, whatever agency [clears throat]

1:30:25or which whichever one. But I do think

1:30:27it's it's very, very important that we

1:30:29get this part right because we don't

1:30:32know exactly what's coming in the future

1:30:34for, you know, as a result of the data

1:30:37center type of skill centers and or

1:30:39resource-intensive use facilities or

1:30:42centers.

1:30:43So, making certain that even though

1:30:46we're doing roads and all of these other

1:30:48things, that a portion of that is set

1:30:51put aside for

1:30:54any type of um

1:30:56disaster or interruption or disruption

1:31:00of services in any way for the city.

1:31:04So, you know, we we definitely want to

1:31:06approach it and I hope that

1:31:08administration is looking at that part

1:31:10while while land use and and placement

1:31:13and um

1:31:16disclosure and all of that is on our

1:31:19side, our purview. I do hope that

1:31:22administration is looking at how we can

1:31:25have, you know, funds for

1:31:29not only the south part of the city, but

1:31:31the entire city if in fact there is

1:31:33something that happens with the

1:31:35utilities or with the water or with a

1:31:39power outage and, you know, people need

1:31:41food and those types of things. So, um

1:31:44it it, you know, it's it's really

1:31:46important that we drill down and really

1:31:47look at um this this whole entire

1:31:52um development

1:31:54from a holistic and a future standpoint,

1:31:57[clears throat] not just currently what

1:31:59we need. Um, we definitely want to fix

1:32:01things like the traffic jams and, you

1:32:03know, anything that deals with safety

1:32:05and of our people and studying of the

1:32:07air quality and like you said, we have 2

1:32:09years of that so we can pull that data,

1:32:11fix those things, put those things in

1:32:13place, but we also need to, you know,

1:32:16um, prepare or be prepared as a city to

1:32:20protect our citizens and provide for

1:32:22citizens in case there's things that

1:32:24that come up that we don't know about.

1:32:27In other cities, you know, they are

1:32:30having some some of these issues. I'm

1:32:32not certain that if it's from the data

1:32:33centers or what, but we see that there

1:32:36are

1:32:37blackouts and things like that. So, just

1:32:38wanted to put that there. Hopefully,

1:32:40that's in a conversation.

1:32:42>> Thank you, Councilwoman.

1:32:43>> You're welcome.

1:32:45>> Here's what I'd like to do real quick.

1:32:46We're going to meet again on November

1:32:48the 9th. I'm not ending today's meeting.

1:32:50Uh, Bobby, uh, Mr. Bobby White from the

1:32:52Chamber had to duck out. He's going to

1:32:54be back on the 9th. He's been at every

1:32:56meeting we've had so far. A lot of you

1:32:57have and there's some citizens here in

1:33:00the audience today that keep coming and

1:33:01it's great. Um, I'm going to commit us

1:33:04to, you know, we've got one in 2 weeks

1:33:07on the 9th and then we'll send out a

1:33:08schedule. Dr. Warren has suggested it,

1:33:10Councilwoman Logan just did. We'll

1:33:12continue to meet publicly every 2 weeks,

1:33:14but I'm also excited until

1:33:17indefinitely and not every council

1:33:18member has to come. I know it's it's

1:33:20crazy scheduling sometimes, but um,

1:33:23let's commit to that publicly and then

1:33:26um,

1:33:29I know we're going to be out in the

1:33:30community. I know people have have

1:33:31listening sessions scheduled and then

1:33:33the mayor is also going to get into the

1:33:34meet. I mean, Chief Winton's about to

1:33:35get into the media their plan and their

1:33:37road show. I like being outside, man.

1:33:39All these meetings at City Hall, but we

1:33:41got to do them, right? Uh,

1:33:42so yeah, so let's count on that, count

1:33:45on each other for that. Uh, yeah, Bobby

1:33:47will be back on the 9th and

1:33:51Oh my gosh, breaking development. He's

1:33:53coming back upstairs. So, he'll be back

1:33:56up here. All right. Councilwoman Logan,

1:33:57thank you. Councilwoman

1:34:00Walker, you are next.

1:34:05>> Yes, thank you.

1:34:07Um

1:34:08So, my question was for Mr. White. Did

1:34:10you say he would be back on the 9th?

1:34:13>> He's actually coming right back up right

1:34:14now, but yes, ma'am, he'll be back on

1:34:15the 9th.

1:34:18If need

1:34:19>> Well, how long

1:34:21How long are we going We going to still

1:34:23do this until 3:00? If Well, if he comes

1:34:25back before we close today, I will put

1:34:28my question forward that that

1:34:31time.

1:34:34I yield the floor.

1:34:38>> I'm I'm available to answer whatever

1:34:40question. I'm I'm I'm here now. I I

1:34:43think the um

1:34:45If we

1:34:45>> I forgot that she wasn't here and

1:34:47visually saw you. Yeah, Councilwoman

1:34:48Walker, I think you're up, Bobby. Yeah.

1:34:51>> No, I I there's a question I'm happy to

1:34:52answer.

1:34:53>> Um

1:34:58Okay, thank you. I didn't realize you

1:35:00were back. So,

1:35:01um

1:35:03as it relates to

1:35:05whatever

1:35:07the data centers do for

1:35:10the community,

1:35:12um the conversations, the chatter, the

1:35:15questions, the the the acts, the

1:35:18recommendations, the ideas, a lot of

1:35:21what people are wanting

1:35:24to see happen, are wanting

1:35:27to see them do deals with um

1:35:30dressing poverty and the eradication of

1:35:33poverty.

1:35:34So,

1:35:36um as far as the chamber is concerned,

1:35:39um I know that that you all were before

1:35:42us in committee in April of 2024,

1:35:46and the young lady who presented with

1:35:48you

1:35:50there was some data shared about the

1:35:52poverty in Memphis, and

1:35:54in conclusion, she said that it was just

1:35:57not a whole lot that could be done to

1:35:59really

1:36:01um

1:36:02um lower the poverty rate in Memphis and

1:36:05I did find that to be disturbing. And so

1:36:07my question to you

1:36:08>> of that quote Councilwoman, though.

1:36:10>> Although

1:36:12you

1:36:12>> Yeah, so

1:36:14I know that based on

1:36:17what you

1:36:18you had something on the screen, so that

1:36:20that's not y'alls

1:36:23that that's not y'alls primary focus,

1:36:25but in lieu of the current

1:36:27situation in the city, in society,

1:36:31is it possible to have some kind of

1:36:33intersectionality

1:36:35between what Space X AI

1:36:38is going to do moving forward and what

1:36:41the chamber can do to help them

1:36:45address poverty here in the city,

1:36:47although that you all

1:36:50don't claim to be responsible for

1:36:52addressing that and the young lady said

1:36:54that not much is going to happen, but

1:36:57I'm just putting it out there. I think

1:36:58it would be great.

1:37:00>> Yeah. Uh yeah, thank you Councilwoman. I

1:37:02do not recall the comment or the

1:37:04presentation, but I do want to just say

1:37:06this, that with our 35 to 45 members

1:37:10there at the chamber, we are addressing

1:37:12poverty by staying in our lane, which is

1:37:15business recruitment and retention. Our

1:37:17issue is is that we are very much

1:37:19focused on what we call um

1:37:23great paying jobs as much as we can be

1:37:26because we know that the best tool in

1:37:28any community's toolbox,

1:37:31uh it's um it's a poverty eradicator,

1:37:33it's a

1:37:34it pushes back on crime, which is

1:37:36actually business recruitment and it

1:37:39retention. It is essential to the growth

1:37:41of the city. So, while we may not frame

1:37:44it as such, I do want to at least defend

1:37:47the fact that the chamber is fully uh

1:37:49committed in that space based on the

1:37:51work that we do as the tip of the spear

1:37:53when it comes to recruitment of

1:37:55businesses and when it comes to

1:37:57retention of businesses. There is a um a

1:37:59slide you may not see, uh which was

1:38:02essentially showing that in the last

1:38:04several years we've had about and I

1:38:06think we've gotten to a play place we've

1:38:08kind of normalized $1 billion. But over

1:38:11the last couple

1:38:12But over the last couple of years we've

1:38:13seen over a hundred billion dollars of

1:38:15tech technology and AI related

1:38:18investment. That's not just SpaceX AI

1:38:21and 5C. That's also FedEx building a new

1:38:24hub, that's St. Jude expanding in

1:38:26downtown. But I do just want to say

1:38:29Councilwoman that we stay focused on

1:38:32that part because we know

1:38:34that in terms of hunting for recruitment

1:38:37that we are

1:38:38as much as we have partners with MLGW

1:38:40and Edge and the city and the county

1:38:42that we are pretty much the ones in that

1:38:45space of actively hunting for what those

1:38:47opportunities are

1:38:49in other spaces to recruit people to

1:38:51Memphis. So so no disrespect to the

1:38:55premise. I'm just speaking to the idea

1:38:57that we are in fact in that space. We

1:39:00just don't necessarily call it that.

1:39:02>> [snorts]

1:39:04>> Okay, well that's great and of course I

1:39:07along with my colleagues, you know,

1:39:08we're aware of what you all do. I guess

1:39:11what, you know, on the street level, on

1:39:13the community level

1:39:15I think it would be good for the

1:39:17community the average more people in the

1:39:20community to know

1:39:22who you all are and what you do

1:39:26and what your role was in

1:39:31um having SpaceX AI

1:39:35to come here. Just like the

1:39:36clarification and I thank you for the

1:39:38the clar- clarification on the NDA.

1:39:42And the reason why we take so many hits

1:39:44about that is because

1:39:47information has not been shared I judge

1:39:50from the right sources and I don't want

1:39:51to get too far to the left but I thank

1:39:53you for your response and in conclusion

1:39:57moving forward

1:39:59I know you all do marketing and PR and

1:40:01all of that but if it could reach down

1:40:06to everyday Memphians in the community,

1:40:10I think that it would um be a benefit to

1:40:15the grand scheme of things. Thank you,

1:40:17Mr. Chair. I yield the floor.

1:40:19>> All right, thank you, Councilwoman

1:40:21uh Walker. I Councilwoman Cooper-Sutton.

1:40:26>> Thank you, Chair. And thank you um

1:40:30I always want to call you what I call

1:40:32you

1:40:32>> Yes, ma'am.

1:40:33>> in our church arena.

1:40:35Um but thank you

1:40:36um

1:40:37I just I'm still trying to say Elder

1:40:39White, Bobby White, uh for coming and

1:40:42for being very transparent.

1:40:45What I would like for the chairman to

1:40:47request and to ask that Edge show up at

1:40:51these meetings as well.

1:40:53>> It's done. Thank you.

1:40:54>> I second

1:40:55they need to show up. The chamber shows

1:40:58up whenever as many hits as they get

1:41:01even from me sometimes, and as many hits

1:41:04as they get from the community, they

1:41:06always show up with transparency. We may

1:41:08not like what we hear or like who's

1:41:11representing them, but when the City

1:41:13Council ask, they do show up. So, I want

1:41:17to make record of that first of all. And

1:41:19thank you, uh Bobby White. The second

1:41:21thing is that um Councilwoman Walker did

1:41:26clarify ordinance.

1:41:28She did clarify agency, and she did

1:41:30clarify community agreement. And this

1:41:33portion is now community benefit.

1:41:36What has been such a huge ask and part

1:41:41for Space X A I

1:41:44since that was the biggest data center,

1:41:46the hyper-scale data center that you

1:41:48know, has been here, the focus. There is

1:41:5075% that went to the city.

1:41:52And most of the communities where these

1:41:54data centers are now located should have

1:41:58air quality monitor monitors.

1:42:01I want to shout out to Shelby County.

1:42:03Have to

1:42:08>> Uh she's just about to get into the

1:42:09shower.

1:42:10>> air quality.

1:42:12They need air quality monitors in our

1:42:15community. That should be part of the

1:42:17benefits. We got 75%

1:42:20of that revenue went to the city. So, we

1:42:23need to really focus in and zoom in and

1:42:27really focus in on that. The community

1:42:30are asking for those monitors. They want

1:42:33them. I get the quality air monitoring

1:42:37report sent to my phone every day. I

1:42:40would suggest that the council members

1:42:42get it, too. That would be a part of

1:42:45knowledge, us being aware what our air

1:42:47quality looks like and what's going on

1:42:49in our city as well.

1:42:51However,

1:42:53when I think about the chambers and they

1:42:55are recruiters, they recruit and attract

1:42:58businesses here.

1:43:00That is great.

1:43:03We would like to see and know more when

1:43:05you're recruiting the skill set of the

1:43:08people that are here in in Memphis that

1:43:10can possibly qualify for those. What

1:43:13education skill sets are we looking for?

1:43:17Uh more open communication when you're

1:43:19recruiting and these city and these

1:43:21businesses are excited to come here

1:43:23because we want to do business with

1:43:25people that want to do good business

1:43:26with us here in Memphis. So, those

1:43:28things are important and we should also

1:43:32have a committee

1:43:35that we are openly quarterly talking

1:43:38about what's happening, [clears throat]

1:43:40who is potentially coming. If the

1:43:42Chamber of Commerce is our faith, we

1:43:45need to know about it as a city because

1:43:48this will give people encouragement,

1:43:50maybe an opportunity that they will want

1:43:52to change their perspective on how they

1:43:55look at things, how they

1:43:57uh approach their education skills, on

1:44:00what things that they want to do if they

1:44:03knew about what potential business have

1:44:06been recruited, excited about coming

1:44:08here, being a part of the city of

1:44:10Memphis. I think those are the things

1:44:12that we need to look at also as

1:44:13community benefits when this is

1:44:16happening. I'm not saying where I I want

1:44:18to take control cuz I don't know where I

1:44:20am going to be for the next 4 years.

1:44:22But, as a citizen, those would be things

1:44:25that I think would be more probable.

1:44:27There are other things that are

1:44:28happening in other cities like Columbia,

1:44:30Georgia. Uh things are happening.

1:44:33Wouldn't that be such an an amazing

1:44:36thing to happen that we don't have to

1:44:38pay taxes because that's one of the

1:44:40biggest revenues that we have here. And

1:44:43negotiating, who who is negotiating

1:44:46[clears throat]

1:44:47when these businesses come here? Who are

1:44:50the negotiators? How are you

1:44:52negotiating? Are you making sure that

1:44:54our most hardest community in this city,

1:44:58as we know that the assessor, hey Mr. Um

1:45:02Javier, has said that we 5 years down

1:45:05the road what we're looking at. So, we

1:45:07got a lot of things we got to take in

1:45:09consideration and making sure that every

1:45:14player, everybody that's important,

1:45:16plays a part. That someone is sitting at

1:45:18the table. And I I don't have to sit at

1:45:21the table. I'm a citizen here, but I

1:45:24sure want to know that these

1:45:26negotiations that we're making with

1:45:27these businesses that are coming here,

1:45:29that the people that really live here,

1:45:31the backbones of it, the people that I I

1:45:33mean got the really grit and grind of

1:45:35it, is participating and know and see

1:45:39and are really benefiting at all,

1:45:41whether we're wealthy or whether we're

1:45:42poor, we all are benefiting from it some

1:45:46way or another. I yield. [clears throat]

1:45:49>> Thank you Thank you, uh councilwoman. I

1:45:50really appreciate the comments. I do

1:45:52want to say just a couple of things. I

1:45:54agree with you wholeheartedly regarding

1:45:55the workforce aspect of it. Uh one of

1:45:58the things we've really pushed toward

1:45:59even as a chamber, and we have about I

1:46:02have about two, three pieces of

1:46:04legislation that we've passed in

1:46:05Nashville to kind of lean into this

1:46:07space as it relates to industry

1:46:08credentials and the fact you don't have

1:46:10to have a 4-year degree in order to get

1:46:13some of these certifications, industry

1:46:14credentials, and get a good paying job

1:46:16on the other side of that. And we've

1:46:17tried to align that with what the market

1:46:19or where the market is going even as it

1:46:21relates to many of these larger

1:46:23employers who've come into our space.

1:46:25So, we agree with you. I agree with you

1:46:27wholeheartedly

1:46:28relative to that, and that's the work we

1:46:30want to get better at even as it relates

1:46:32to our connection. We want the things

1:46:34that the school districts do to be even

1:46:36better informed by what the market where

1:46:40the market is going and what the needs

1:46:42of businesses are.

1:46:43I do want to say this.

1:46:45I'm from South Memphis.

1:46:47Um

1:46:48Uh

1:46:49we we have an institutional fortitude.

1:46:51I'm working here at the chamber. We're

1:46:52not here to be liked. We're here to be

1:46:54effective. Uh we're not um we're not

1:46:57trying to host a public opinion poll to

1:46:59see how people think about us. And I'll

1:47:01even say this to you, Councilwoman

1:47:04Walker, you mentioned it. Most of our

1:47:06marketing and in PR is not in Memphis.

1:47:08It's outside of Memphis. Uh we're not

1:47:11using our marketing dollars to try to

1:47:13get citizens to feel better about us.

1:47:16This is why we talk to you.

1:47:18This is why we want you to know what

1:47:20we're doing for you all to be able to

1:47:22stand up and make mention of the work

1:47:24that we do because quite frankly, we

1:47:26spend every dime that we have

1:47:29uh that should be spent with site

1:47:31selectors and people outside of the city

1:47:34trying to recruit them in if we were to

1:47:36spend it internally in Memphis trying to

1:47:38get people to better understand. But

1:47:39again, this is why we communicate uh

1:47:41with you all and appreciate your

1:47:42comments.

1:47:43>> why can't you spend it both places?

1:47:45>> We'd love if you guys want to invest in

1:47:46the chamber, we'd love to uh

1:47:48>> Cooper Sudduth was speaking of what

1:47:50Cooper Sudduth was speaking of if you

1:47:52spent it both places

1:47:55to what the point I was making, maybe I

1:47:57was misunderstood and to the point that

1:47:59she was making

1:48:01why can't it be spent

1:48:03both places so people can know about the

1:48:06job creation that you all are doing?

1:48:09>> No, no, no. Yeah, not to interrupt, but

1:48:11on the job creation, the workforce piece

1:48:13is one thing. I'm speaking wholly and

1:48:16specifically to in fact how most of our

1:48:18attention marketing dollars actually go

1:48:21toward promoting Memphis. It goes toward

1:48:24recruiting companies. It goes toward

1:48:26travel budget to go to other cities.

1:48:28>> that's obvious cuz most Memphians don't

1:48:30know about y'all or what y'all do as it

1:48:33relates to making their lives better as

1:48:35it relates to making the city better.

1:48:37And I think as it relates to the overall

1:48:39equation, it would be helpful if more

1:48:42Memphians knew about what you all were

1:48:45doing for the citizens and for the city.

1:48:48>> We welcome any invitation, town hall

1:48:51meetings, any forums you guys are

1:48:52interested in hosting. We're more than

1:48:54welcome as uh Councilwoman Cooper-Sutton

1:48:56mentioned, we we show up and we're more

1:48:58than welcome to answer any questions and

1:48:59speak in those forums that you guys said

1:49:01because again, people look to you all

1:49:03for answers and we're happy to be

1:49:04supportive.

1:49:08>> Quick. Thank you, Councilwoman Walker.

1:49:11>> Well, thank you. I'm looking forward um

1:49:13I'll be looking forward to that.

1:49:15>> Councilwoman Cooper-Sutton.

1:49:17I hear Did you want to say something?

1:49:18>> Um I

1:49:19Well, I was just going to wrap it wrap

1:49:21up my my comment, but um thank you and

1:49:26uh Bobby White, thank you for the

1:49:27Chamber. I'm going to give you all

1:49:28another shout-out for showing up. Um you

1:49:31all get as much heat hit as we do and I

1:49:34do personally. And uh Chairman, I want

1:49:38to not sound redundant, [clears throat]

1:49:40but be very clear.

1:49:42Um

1:49:43they show up every time.

1:49:44>> Yes, ma'am.

1:49:45>> We need the EDGE board to show up every

1:49:48time.

1:49:49>> Yes, ma'am.

1:49:49>> When there's an ask and a request sent

1:49:52to them

1:49:54because there's questions that need to

1:49:55be asked from them on the business side

1:49:58as well. We're trying to One

1:50:01Councilwoman Logan said something during

1:50:03my second year term.

1:50:06And she said she wanted a better

1:50:07relationship with EDGE,

1:50:10Chamber

1:50:11communicating, talking.

1:50:14And the Chamber has fulfilled that

1:50:16wholeheartedly and I'm grateful for

1:50:18that.

1:50:19And I'm thankful for that. And

1:50:23I feel that I can call the chamber at

1:50:25anytime, and you know, let them know

1:50:27they know that I have a tour going on.

1:50:29They're welcome to show up at the tour,

1:50:31but it's really dear to

1:50:33uh parks and community. But they're

1:50:36welcome to show up. He the

1:50:39Mr. White has never never not been

1:50:42um

1:50:43a pushback with me.

1:50:45And answer my question. Uh Councilwoman

1:50:47Walker, there is a sheet that I'm going

1:50:49to send to you that SpaceXAI sent sent

1:50:52to me of their investment

1:50:54of what they have been investing in

1:50:56because that was some things that I

1:50:58wanted to know since the new takeover of

1:51:01SpaceXAI.

1:51:02So, Dominique, my analyst would will

1:51:05will send that over to each council

1:51:07member uh for your in

1:51:08>> and and we'll put that on the website.

1:51:10Sorry, I'm trying to cut you off.

1:51:11>> it should be shared I think it should be

1:51:13shared publicly cuz like I said a little

1:51:16earlier, people think they haven't done

1:51:18anything, and they're not currently

1:51:20doing anything. And so, I think it needs

1:51:23to be shared publicly, but I know that's

1:51:25not their model to just make it known

1:51:27what they're doing. But thank you

1:51:29>> Well, for that. Yeah. Yeah, and that's

1:51:31why I asked so I could get the

1:51:33information out to my constituents when

1:51:36they ask or there won't be any

1:51:37misinformation. And if it is

1:51:39misinformation that, you know, we can

1:51:42research and do, I can only give them

1:51:45what has been given to me.

1:51:47>> Yeah.

1:51:47>> And trust and be very prayerful that

1:51:49that is, but uh

1:51:51Chairman Spenozza, I'm going to yield.

1:51:53Thank you for this forum that you

1:51:56um

1:51:57did, and I appreciate it. And thank you

1:51:59again. I yield.

1:52:00>> Thank you, ladies. Um

1:52:02yeah, these meetings sometimes are

1:52:03probably horribly boring. I'm sitting

1:52:05here thinking, you know, so much good

1:52:07information. We need to get Project Pat

1:52:09to come in here and do like, you know,

1:52:11the new churches

1:52:13thing cuz I can't get that song out of

1:52:14my head.

1:52:15Uh I get like maybe in between committee

1:52:17meetings, Dr. Warren, you think?

1:52:18>> It let me uh thank you.

1:52:20>> Sorry, go ahead. I'm not sorry.

1:52:21>> [clears throat]

1:52:22>> I would like that.

1:52:22>> Last year

1:52:24the chamber lobbied for state bill 1074.

1:52:28You familiar with that bill, Bobby?

1:52:30>> Tell me which one it is.

1:52:31>> It's the one that preempted community

1:52:34benefit agreements.

1:52:37That we could not do community benefit

1:52:39agreements. So, last year

1:52:40>> But those are based on state incentives.

1:52:42Uh if I if I remember correctly.

1:52:44>> I'm not sure what it is. Will you look

1:52:45that up and figure out what it is and

1:52:47bring it back to me cuz I didn't realize

1:52:49we were lobbying against ourselves last

1:52:51year. But um

1:52:53>> I don't think we had a plan in terms of

1:52:55how we're moving forward, but I believe

1:52:56that the particular piece of legislation

1:52:58you're talking about, and I'm going by

1:53:00memory here, was tied to and it was not

1:53:02necessarily us uh as much as there was

1:53:05this whole idea that if you're receiving

1:53:07state incentives, there was some It's

1:53:09It's tied to state incentives, if I

1:53:11remember correctly.

1:53:12>> Okay, so we need to we're probably going

1:53:14to need to unwrap

1:53:15rewind that or unwind it or whatever to

1:53:18get this community benefit agreement

1:53:20through more than likely.

1:53:22Have your guys look at it and see what

1:53:24they think as we move forward with it.

1:53:26Thank you, Bobby.

1:53:27>> Thank you, Councilwoman Warren. Chief

1:53:29Wente, you want to make a comment before

1:53:30we wrap it up?

1:53:31>> Yeah, just a quick comment. Uh one of

1:53:32the things that's part of the work uh

1:53:34we've been talking with both 5C, uh

1:53:37Google who's across the pond, as well as

1:53:39SpaceX AI about now bringing together

1:53:42that story on terms of jobs and career

1:53:45pathing, like what's in it for them as a

1:53:48collective story. So, more to come

1:53:50there.

1:53:50>> All right, thank you. So, Gia just

1:53:53confirmed we're continuing to load

1:53:54documents on that link, so check out the

1:53:56link like you're going to get the most

1:53:57recent Shelby County Health Department,

1:53:59everything that's been presented to us

1:54:00or given

1:54:02to us. Um and I'm excited to see that

1:54:05list that it sounds like Councilwoman

1:54:06Cooper-Sutton just got. So, we'll see a

1:54:08list that we just got from SpaceX that

1:54:09has some of their investments in the

1:54:10community. We'll be back on November the

1:54:139th. Uh

1:54:15we got

1:54:15>> Can I make one comment on what you're

1:54:17maybe sharing regarding the funds that

1:54:20have been shared? I You may want to back

1:54:23and check because I do know that been

1:54:26tens of millions of dollars have been

1:54:27given out where they have had entities

1:54:30actually sign NDAs. So, whatever may

1:54:32have been shared, you may want to clear

1:54:34with the company that they're okay with

1:54:36that being shared publicly. That's the

1:54:38only thing.

1:54:38>> Well, I haven't seen anything yet. I

1:54:41mean, I just heard like we all did in

1:54:42real time. Councilwoman Cooper said and

1:54:44said she got a list of something. So,

1:54:47just for public knowledge

1:54:50I mean, thank you for saying that.

1:54:52If it went to a city email

1:54:54you know, um

1:54:56Yeah, so I mean, it I

1:54:59you know,

1:55:00um you did. You did. You definitely did

1:55:02and I appreciate you saying it. All

1:55:04right, so we'll be back on the 9th and

1:55:06uh appreciate everybody for coming.

1:55:08Thank you.

```*

## Sources

- Agenda: https://memphis.granicus.com/ViewPublisher.php?view_id=10

- Event page: https://memphistn.gov/event/community-benefits-economic-growth-outstanding-questions/