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HomeMy WebLinkAboutResolution 68-11RECORD OF RESOLUTIONS ftnk.lna.. Fan No.3 5 68 -11 Resolution No. Passed .20 • RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE • LEASE AGREEMENT WITH METRO DATA CENTER, LLC FORTHE PURPOSE OF ESTABLISHING THE TECHDEC AND EXTENDING THE CITY'S OPTICAL FIBER SYSTEM INTO 565 METRO PLACE SOUTH WHEREAS, Dublin's dynamic local economy is the direct result of an entrepreneurial spirit; and WHEREAS, the City of Dublin recognizes that in addition to its efforts to retain, expand and attract business, the City must also set the conditions for new business and job creation; and WHEREAS, the City of Dublin must facilitate entrepreneurship and business development in order to increase the level of entrepreneurial activity and improve the chances of establishing successful technology enterprises and expanding businesses by honing skills and providing access to necessary tools, technical and financial resources, and by working proactively to enhance the local entrepreneurial environment; and WHEREAS, the existing Dublin Entrepreneurial Center (DEC) has experienced much success by providing an environment that is attractive to new start-up companies as both a place to physically locate as well as obtain the necessary support services; and WHEREAS, Battelle's Cluster Development Strategy Two recommends a second start-up accelerator to stimulate Dublin's Internet Commerce and Computer Services Cluster; and WHEREAS, a unique opportunity exists to partner with a Dublin -based data center company to establish the TechDEC and enhance the value of the DubLink optical fiber system; and WHEREAS, the new TechDEC will provide access and support generally to businesses and the entrepreneurial community with a focus on further developing Dublin's internet commerce and computer services cluster; and WHEREAS, extending the City's optical fiber system into the new data center at 565 Metro Place South will set the conditions to enhance the value and capacity of the City's optical fiber system; provide value -added service to Dublin businesses and potentially attract and /or create new companies and jobs related to internet commerce and computer services clusters, as well as other companies and jobs that rely on the immediate availability of a data center and its related services. / NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, -L of its elected members concurring, that: Section 1 . The City Manager is hereby authorized to execute a one year lease agreement not to exceed $25,000 with Metro Data Center, LLC for the purpose of providing entrepreneurial and business training and support services space within a new "TechDEC." Section 2 . The City Manager is hereby authorized to extend the City's optical fiber system into a new data center to be established at 565 Metro Place South at a cost not to exceed $41,800 with funds authorized for similar purposes in the 2011 -2015 Capital Improvements Program (AB0802). Section 3 . This Resolution shall be effective upon passage in accordance with Section 4.04(a) of the Revised Charter. Passed this 0 _ 4 h day of hXfe t-Pnb t_ 2011. Mayor - Presi 'n Officer ATTEST: Clerk of Council Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017 -1090 City of Dublin Phone: 614- 410 -4400 • Fax: 614-410 -4490 To: Members of Dublin City Council From: Marsha L Grigsby, City Manager Date: December 8, 2011 01' Initiated By. Dana L. McDaniel, Deputy City Manager /Director of Economic Development Re: Resolution No. 68 -11— Lease Agreement for TechDEC and Optical Fiber Installation Summary The purpose of Resolution 68 -11 is to authorize the City Manager to: 1. Establish a technology and IT- focused entrepreneurial center ( "TechDEC' by authorizing the City Manager to execute a lease agreement (attached) for 1,000 square feet of training space at 565 Metro Place South immediately adjacent to a new data center. The total cost for this one year lease is $25,000. The focus of this space will be to provide a place, similar to the Dublin Entrepreneurial Center (DEC), where IT and computer support services start- up companies and IT service organizations /associations and other businesses and entrepreneurial interests can network, train, and collaborate. The Battelle Cluster Study that was reviewed at the November 14, 2011 Council meeting identified the development of this type of accelerator as a way to encourage development of start -up and entrepreneurial businesses. Also, similar to the DEC, the building owner is agreeing to make an adjacent 30,000 square feet available for these IT- oriented companies and service organizations /associations to locate. The building owner is already experiencing inquiries from interested parties desiring to locate in the TechDEC. The TechDEC will foster relationships through community resources within education, businesses, TechColumbus, the City and other potential collaborators. 2. Authorize the City Manager to extend the City -owned DubLink optical fiber system into the new data center to be developed by Metro Data Center, LLC at the 565 Metro Place South. Extending the City's optical fiber into the facility will further enhance the value of the City's optical fiber system. The City has extended its optical fiber into four similar facilities in Central Ohio. The cost to extend the City's optical fiber into the new data center at 565 Metro Place South will not exceed $41,800 (quote to install $38,000 + $3,800 (10 %) contingency). This funding is available from the 2011 CIP for extension of the optical fiber system. The opportunity to extend optical fiber into this facility was not specifically anticipated as part of the 2011 CIP, however; these funds are available. By placing the optical fiber into this new data center, staff anticipates relocating the City's servers and point of presence for the Central Ohio Research Network (CORN) into this facility. At a later date, staff intends to bring forward a request to Council for the authorization of additional funding and a potential partnership agreement to enable the City's optical fibers to be "multiplexed" from this location. Multiplexing the City's fiber will significantly increase the City's existing optical fiber capacity by enabling multiple users to access the same optical Memo re. Resolution 68 -11 — TechDEC Lease Agreement December 8, 2011 Page 2 of 2 fibers. This will significantly extend the City's existing optical fiber capacity without buying and installing additional optical fibers. It is also very possible that the City can generate more revenues through subleases. Background The DEC has experienced significant success since its inception in 2009 and has been recognized by the International Economic Development Council. Currently, the DEC has 62 companies with a waiting list of 15 companies. In 2010, 242 programs attracted nearly 3,000 participants and 2011 is on course to exceed this number. The DEC and its programming has successfully supported companies and has "graduated" companies into other office space within Dublin, thereby creating new jobs and retaining companies in Dublin. The Green Integrator, established in 2010, is now home to 10 green start -up companies. The Dublin International Business Assistance Center ( DIBAC), established in 2011, has hosted 10 targeted events with over 500 attendees; attracted a global association called The International Entrepreneur (TIE -Ohio) — the only TIE Ohio Chapter outside of Cleveland; and recently hosted a luncheon for Consulate offices representing eight countries. The DEC has attracted over 60 collaborators and the DIBAC has 24 collaborators. Collaborators provide free training, mentoring and coaching and sponsor luncheons and donate furniture, supplies and services in support of business creation efforts, DEC enhancements and personal development of entrepreneurs. TechColumbus and the Small Business Development Council continue to provide training, mentoring, coaching and access -to- capital services. The City of Dublin is now poised in partnership with Metro Data Center, LLC, a locally owned company, to expand the DEC's operations into a new TechDEC and to establish a new data center within the City of Dublin. Metro Data Center, LLC intends to take ownership of an existing data center at 565 Metro Place South. Previously, the data center was owned and operated by a private company for its own use. This 7,000 square foot data center is a state -of- the -art facility, supporting n +1 environment standards. This data center will provide a wide ranging carrier - neutral environment for its customers, similar to the other data centers the City's optical fiber system currently accesses. Staff intends to work with Metro Data Center, LLC to promote it as a value added facility to Dublin, particularly for the City's small to medium size businesses. Economic Development staff is of the opinion that such a facility will be a great service to these businesses. Recommendation Staff recommends approval of Resolution No. 68-11. Approval will support Council's goals relative to creating new businesses and jobs and promoting new partnerships and possibilities. Please contact Dana McDaniel with any questions you may have. AGREEMENT OF LEASE THAT Metro Data Center, LLC HEREBY LEASE TO The City of Dublin Ohio (Lessor) (Lessee) The premises commonly referred to as: See Exhibit "A" (Premises) For the term of: One Year — 01/01/2012— 12/31/2012 Commencing: Januarv. 1, 2012 At the Monthly Rental of: Two Thousand Eighty Three 00 /100 ($2,083.00) A. Use and Occupancy: Said Premises are to be used and occupied for General Office purposes. Lessee agrees to pay said rent in the manner aforesaid; to use and occupy said Premises in a safe and careful manner and not to commit or suffer waste therein; not to use said Premises for any unlawful purpose; to make no alterations without written consent of Lessor; upon termination of this lease wear and unavoidable casualties excepted; to save Lessor harmless by reason of loss or damage to property and /or personal injury to any persons in or about said premises occasioned by negligence of the Lessee and to maintain insurance policies in type and amounts satisfactory to Lessor to accomplish such purpose; to assume sole responsibility for all property of the Lessee used, stored or maintained upon the Premises. B. Personal Propertv: That all personal property placed in the rented Premises shall be at the risk of the persons owning same, and in no event shall the Lessor be liable for the loss by fire or otherwise to such property of the Lessee. C. Operating Expenses: It is further agreed that the responsibility for utilities, maintenance and operating expenses of the real estate shall be as follows: Interior Maintenance * Lessor Exterior & Common Area Maintenance Lessor Interior Cleaning Lessor Electric Lessor Sewer & Water Lessor Grounds & Parking Lessor Gas Lessor Contents Insurance Lessee Building Insurance Lessor Liability Insurance Lessor & Lessee * Lessee shall be responsible for any repairs and maintenance related to Lessee's use of the premises. D. Default by Lessee: It is mutually agreed that if said rent or any part thereof be not paid for five (5) days after becoming due and without demand therefor, or if said Lessee shall fail to keep any of the other covenants of this lease, or abandon or vacate the premises, or if proceedings in bankruptcy shall be instituted by or against Lessee, or a receiver or trustee be appointed for his property, it shall be lawful for Lessor to re -enter said Premises, repossess the same as in its first estate and thereupon this lease shall cease and be void all without prejudice to Lessor's remedies at law. s9oozs9Vz Lessee agrees that if, for any reason whatsoever, the rent is not delivered to the Lessor by 5:00 PM on the FIFTH DAY of each month, than the Lessee shall pay the Lessor, in addition to the scheduled monthly rental amount, a "Late Charge" in the amount of 5% (five percent) of the rental amount due. Lessee further agrees that if, for any reason whatsoever, any of the monthly rental checks of the Lessee do not clear the Lessee's bank, that the rental check will be re -drawn so as to include, in addition to said late charge amount, a penalty of $50.00 (fifty dollars). E. Access by Lessor: That the Lessor has the right of free access to inspect, repair, alter or to exhibit for sale or rental any part of the premises. F. Termination Clause: Subject to termination pursuant to Section H below, during the term of this Lease, with sixty (60) days written notice, Lessee and Lessor shall have the right to terminate this agreement and Lessee agrees to vacate the premises on or before the sixtieth (60 day. G. Security Deposit: Two Thousand Eighty Three 00 /100 ($2.083.00), said sum being security for the full and faithful performance of the duties and obligations imposed upon the Lessee by the terms and provisions of this lease. In the event of a default by Lessee in such performance, Lessor may apply such portions of such deposit as are necessary in order to compensate Lessor for any damages sustained by Lessor by reason of any such default. It is understood by the parties that said sum shall not be credited against any rent due by Lessee to Lessor. If, upon the termination of this Lease, the leased Premises is not in good order or repair, reasonable wear and tear excepted, Lessor may apply said security deposit of Lessee against the Lessor's cost of repairing the Premises for use by a successor Lessee, and in the event said security deposit is insufficient to cover said costs of repair, then the Lessee agrees to pay the balance thereof within thirty (30) days after being so notified by Lessor in writing. H. Master Lease: Lessor and Lessee acknowledge and agree that for purposes of the Lease Agreement between Two Metro Place Partners LLC, as landlord, and Lessor, as tenant, dated November 21, 2011 (the "Master Lease "), that (a) Lessee is not a sublessee or assignee, as those terms are used in the Master Lease, of the Leased Premises (as defined in the Master Lease) or of Lessor's rights under the Master Lease; (b) this Lease shall terminate upon the expiration or the earlier termination of the Master Lease in accordance with its terms without notice to Lessee; provided, however, that Lessor shall provide Lessee with notice if and to the extent that Lessor has prior notice of the termination of the Master Lease; and (c) this Lease is subject and subordinate to the Master Lease, including, without limitation, all Building Rules and Regulations (as defined in the Master Lease) and any and all Superior Interests (as defined in the Master Lease). s9oozs9Vz ACKNOWLEDGED & AGREED This agreement shall be in full force and effect on this day of December, 2011. LESSOR Metro Data Center, LLC C LESSEE City of Dublin Ohio C Its: Notice Address: Metro Data Center, LLC ATTN: Niles C. Overly 565 Metro Place South Dublin, Ohio 43017 Notice Address: City of Dublin Ohio 5200 Emerald Parkway Dublin, Ohio 43017 s9oozs9Vz EXHIBIT A The City agrees to lease 1,000 square feet of meeting space at $25.00 per square foot, including all furnishings for a total of $25,000 for the year. The 1,000 square feet is inclusive of the Board Room and two conference rooms. The City and the Lessor agree that programming, training, individual company meetings, networking events and other activities associated with the mission of the TechDEC will be held in this and/or similar space to be made available by the Lessor. Both parties agree that the intent of this space is to serve a similar function as the space made available at the Dublin Entrepreneurial Center for the purpose of creating and developing new technologies, businesses and jobs. s9oozs9Vz