Graham weighs Project Saltworks proposal, drafts escrow agreement

GRAHAM — The Graham City Council has taken another procedural step in its evaluation of the proposed Project Saltworks data center development. The Council last week authorized a draft escrow agreement that would allow the city to recover the costs of outside experts hired to review the project.

The draft agreement, released July 15 along with an executive summary from City Manager Eric Garretty, would require Headwaters Site Development LLC to deposit an initial $25,000 into a segregated city escrow account. The money would reimburse the city for engineering, financial and legal consulting fees incurred as it conducts due diligence on the proposed development.

The agreement stems from a unanimous July 10 City Council vote authorizing Mr. Garretty and the city’s attorneys to finalize the escrow arrangement. According to the executive summary, the agreement remains in draft form and has not yet been formally executed.

Mr. Garretty emphasized that the escrow agreement is strictly an administrative measure and does not indicate whether the city will ultimately support or reject the project.

“This Escrow Agreement DOES NOT create ANY binding obligation for the City to approve or disapprove any future agreement,” the executive summary states. “As of July 15, 2026, the Escrow Agreement is still in DRAFT form.”

Project Saltworks is being pursued by Headwaters Site Development on land in unincorporated Young County. The proposal includes the possible creation of one or more special districts and a Tax Increment Reinvestment Zone (TIRZ) to help finance infrastructure associated with the development.

Under the proposed agreement, the city would hire engineers, financial advisors, and legal counsel to evaluate the project’s feasibility, including the proposed special districts and development agreements. Headwaters would reimburse those costs beginning with expenses incurred on or after April 1, 2026.

The agreement specifies that the initial reimbursement amount is capped at $25,000. Additional funding could be requested as the project advances, but only with the developer’s express consent.

Headwaters would have the right to review consultant invoices to verify that escrow funds are being spent in accordance with the agreement. The developer also agrees to cooperate with reasonable requests from the city and its consultants during the review process, while the city agrees to maintain the confidentiality of proprietary information to the extent allowed by law.

The draft makes clear that reimbursing consultant costs does not constitute approval of the proposed TIRZ or any special districts.

“The Developer acknowledges that it must obtain separate approval from the City,” the agreement states, adding that the escrow arrangement “shall not serve as any approval, consent, waiver, or as the basis for any estoppel.”

The agreement also gives Headwaters the right to terminate the arrangement with 30 days’ written notice. Upon termination, the city would pay any outstanding consultant invoices, provide the developer with a detailed accounting of expenditures and return any unused escrow funds within 30 days.

The City Council continues to discuss the proposed economic development agreement and related issues in executive session. No final decisions have been made regarding the Project Saltworks proposal or any associated development incentives.