El Paso City Council Work Session - July 20, 2026

The El Paso City Council held a work session on Monday, July 20, 2026, beginning at 9:03 AM and concluding at 6:20 PM. The session covered five major agenda items: a data center policy framework, a housing strategy, a redevelopment incentives policy, a facility condition assessment update, and a discussion on ratepayer protection through utility intervention. The Council also entered executive session to discuss several legal and economic development matters. Key actions included the unanimous adoption of a resolution for the data center policy framework and authorization for the city attorney to intervene in utility filings.

Public Comments & Testimony

• Veronica Carvajal (Sembrando Esperanza) expressed opposition to AI data centers, stating that the community does not want them. She urged the Council to require enforcement penalties, make renewable energy mandatory, and address noise, heat, and electromagnetic field impacts. She also noted that the city has nuisance authority over data centers outside city limits.
• Saul Gonzalez (Sembrando Esperanza) supported the data center framework as a first step but emphasized the need for more community meetings and action to prevent expansion of existing data centers. He invited Council members to a community event in Chaparral to hear from residents near the Meta data center.
• Kathleen Stout (Community First Coalition) supported the housing strategy, commending the thorough research and community consultation. She advocated for expanding opportunities for nonprofit affordable housing developers, facilitating community land trusts, and creating a housing trust fund. She also recommended designating a housing director and grant writer.
• Richard Deyub (registered lobbyist) generally supported the housing strategy but urged the city to remove barriers to infill development, such as lengthy permitting processes and zoning codes that discourage development inside the city limits.
• Carmen Rodriguez (Community First Coalition) advocated for a city rental registry to address substandard housing conditions, a housing trust fund, and community land trusts. She also noted the importance of whistleblower protections for tenants.
• Rafael Garcia (pastor, Sacred Heart Church) described unsafe housing conditions in Segundo Barrio, including inadequate plumbing, lighting, and ventilation. He called for more inspections and whistleblower protections for tenants.

Discussion Items

• Data Center Policy Framework (Item 1): Staff presented the framework, developed over five months with community engagement. Recommendations included a tiered zoning approach: small data centers by right, medium and large (hyperscale) requiring special permits with increased notification (500 feet), buffer zones (300 feet from residences), landscaping, and noise mitigation. Environmental recommendations called for the most efficient cooling systems and disclosure of energy, water, and emissions data. Economic recommendations included no incentives for hyperscalers (as per May 26 action), cost shifting to developers, community benefits agreements, and a pause on land sales until codification. Staff also highlighted state legislative advocacy to protect city zoning authority and ratepayers. Council discussion covered questions about jurisdiction outside city limits, utility coordination, enforcement, and the need for future amendments. An amendment to the state legislative agenda was proposed but withdrawn to be brought separately. The resolution was adopted unanimously.
• Housing Strategy (Item 2): Consultant Matt Prosser presented the draft housing strategy, a key deliverable of the comprehensive plan. The presentation covered the housing needs assessment, which identified overcrowding as the most prevalent issue, and outlined three strategies: reinvestment and stabilizing neighborhoods (including anti-displacement), attracting a diversity of housing types (including a housing trust fund and use of excess city land), and increasing overall housing production (including regulatory changes and participation in a national housing supply accelerator program). Council members requested more detailed data by district, clearer implementation timelines, and further discussion on anti-displacement, homeownership, and the impact of American Community Survey data. No action was taken; the strategy will be refined and included in the comprehensive plan adoption.
• Redevelopment Incentives Policy (Item 3): Matt Prosser presented recommended refinements to the city's infill incentive policy. Key recommendations included creating separate tracks for small and large projects, simplifying the sales tax rebate, providing longer tax abatements (up to 10 years), targeting incentives to growth areas identified in the future land use map, and exploring additional tools such as a dedicated project review team and partnerships with utility providers. Council members expressed support and requested further detail, but no action was taken. Staff will incorporate feedback and bring a draft policy forward.
• Facility Condition Assessment Update (Item 4): Streets and Maintenance Department presented an update on a new facility condition assessment process. The city maintains 34 unique buildings, 37% over 50 years old. For FY26, 32 projects were identified (roofs, mechanical, electrical), with 20 deferred to FY27. The department aims to assess 25% of 300+ buildings annually. Discussion included the need for proactive maintenance, standardizing materials, and tracking warranties. Council members urged consideration of revenue-generating facilities and equitable distribution of repairs, while staff emphasized that emergency repairs must be prioritized regardless of district.
• Ratepayer Protection and Utility Intervention (Item 5): Staff from the city attorney's office presented on the increasing frequency of utility filings (14 in 2026 so far, compared to 4-8 in prior years). The city's intervention has saved an estimated $85 million since 2021. Staff requested authorization to intervene in electric and natural gas regulatory filings, including certificates of convenience and necessity (CCNs) and interim filings, to protect ratepayers. Council members discussed the process, the role of the Public Utility Commission, and the need for better public communication about the impact on bills. The motion to authorize the city attorney to intervene in such filings was approved unanimously.

Key Outcomes

• Data Center Policy Framework: Resolution adopting the framework approved unanimously (motion by Mayor Pro Tem Chavez, second by Representative Limon).
• Ratepayer Protection: Motion to authorize the city attorney to intervene in electric and natural gas regulatory filings, including CCNs and interim filings, approved unanimously (motion by Representative Limon, second by Alternate Mayor Pro Tem Fierro).
• Executive Session Actions:
  • EX2 (Isleta del Sur Pueblo vs. City of El Paso): Motion to authorize the city attorney to deny the settlement demand and take all necessary steps, approved unanimously.
  • EX5 (El Paso Electric rate schedule for data center): Motion to authorize the city attorney to hire outside counsel and intervene in the Public Utility Commission docket 59948, approved unanimously.
  • All other executive session items (EX1, EX3, EX4, EX6, EX7, EX8, EX9) resulted in no action.