Resolution 47-12RECORD OF RESOLUTIONS
Dayton Legal Blank. Inc.. Fonn N o. 30045
47 -12
Resolution No. Passed . 20
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A LEASE AGREEMENT WITH METRO DATA CENTER,
ESTABLISHING THE DUBLIN ENTREPRENEURIAL CENTER AT
565 METRO PLACE SOUTH, SUITE 300
WHEREAS, the Dublin Entrepreneurial Center ("DEC") is currently located at a
facility on Post Road that is in contract to be sold to Ohio University; and
WHEREAS, as a result of this sale, the relocation of the DEC is necessary;
and
WHEREAS, Economic Development staff has spent several months evaluating
potential sites for the DEC and its tenants and recommends 565 Metro Place
South, Suite 300 for the relocation of the DEC; and
WHEREAS, 565 Metro Place South, Suite 300 has several advantages over
other spaces, namely that it is a suite of approximately 10,000 -SF adjacent to
the TechDEC, as well as offering a 1,200 -SF training space on the building's
first floor; and
WHEREAS, the proposed Lease Agreement is with Metro Data Center and
carries a five -year term with descending payments from the City; and
WHEREAS, the proposed Lease Agreement also includes a renewal of the
current co- located TechDEC partnership with Metro Data Center.
NOW, THEREPRE, BE IT RESOLVED by the Council of the City of Dublin,
State of Ohio, of the elected members concurring, that:
Section 1 . The City Manager is hereby authorized to enter into a Lease
Agreement with Metro Data Center in substantially the same form as the
attached Exhibit A.
Section 2 . This Resolution shall take effect and be in force upon passage in
accordance with Section 4.04(a) of the Revised Charter.
Passed this day of 2012
Mayor — P siding Officer
Attest:
Clerk of Council
I cityof Dublin
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
Phone: 614 - 410 -4400 • Fax: 614 -410 -4490
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager`ti�y_
Date: August 16, 2012
Memo
Initiated Dana L. McDaniel, Deputy City Manager /Director of Economic Development
By: Colleen Gilger, Economic Development Manager
Re: Resolution 47 -12 - Relocation of the Dublin Entrepreneurial Center
Summary
At the August 8, 2012 City Council meeting, Colleen Gilger presented the site analysis and five
options for a new location for the Dublin Entrepreneurial Center. Economic Development
recommends authorizing the City Manager to establish the Dublin Entrepreneurial Center (The
DEC) at 565 Metro Place South, Suite 300 by executing a five -year partnership agreement for
partial subsidization of 11,672 square feet of training and office spac, immediately adjacent to the
Metro Data Center and the TechDEC. (See attached Exhibit A.)
Background
The DEC's current home, 7003 Post Road, was sold in mid -July to Ohio University for its medical
school extension campus. We expect renovations to begin in 2013, and have studied multiple
scenarios to move all current DEC tenants from the OU space by the end of 2012.
During program and site analysis, staff considered several possibilities:
1. Do nothing and the DEC program ceases at the end of 2012;
2. Purchase an office building;
3. Master lease a facility (both retail and office spaces were identified and considered); or
4. Enter a Public- Private partnership for a facility lease.
The Public- Private partnership option became a clear choice when evaluating cost, responsibility,
risk profile and length of commitment. By bringing together all the DEC brands (Green Integrator,
International Business, TechDEC, new Veterans program) under one 30,000 -SF space within a
vibrant office park setting, we strengthen the business -to- business interaction, training resources,
amenities and way - finding for local entrepreneurs.
Recommendation
Staff recommends approval of Resolution 47 -12, as it supports Council's goals relative to creating
new businesses and jobs and promoting new partnerships and opportunities. Please contact Dana
McDaniel or Colleen Gilger with any questions.
RESOLUTION 47 -12
EXHIBIT A
AGREEMENT OF LEASE
THAT
Metro Data Center, LLC
(Lessor)
HEREBY LEASES TO
The City of Dublin Ohio
(Lessee)
The premises commonly referred
to as: See Exhibit "A"
(Premises)
For the term of:
Five Years — 1/1/2013 — 12/31/2017
(Monthly Rent Payment of $15,083.34)
Commencing:
January 1, 2013
(Monthly Rent Payment of $13,750)
A. Use and Occunancv: Said Premises are to be used and occupied for General Office
purposes. Lessor and Lessee agree that the Premises shall be provided and operated as
further enumerated in Exhibit A. Lessee agrees to pay said rent in the manner set forth
below; 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; 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. Rent: Lessee shall pay to Landlord as rent for the Premises commencing on January 1,
2013 and continuing during the Term:
• Year 1
$196,000.08
(Monthly Rent Payment of $16,333.34)
• Year 2
$196,000.08
(Monthly Rent Payment of $16,333.34)
• Year 3
$181,000.08
(Monthly Rent Payment of $15,083.34)
• Year 4
$181,000.08
(Monthly Rent Payment of $15,083.34)
• Year 5
$165,000.00
(Monthly Rent Payment of $13,750)
The Rent shall be paid in twelve (12) monthly installments due on the 5" of each month
in an amount equal to the Monthly Rent Payment as set forth herein.
C. Personal Property: 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.
D. 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
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RESOLUTION 47 -12
EXHIBIT A
E. Lessee shall be responsible for any repairs and maintenance related to
Lessee's use of the premises. 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.
F. Assumption of Lease Commencing on January 1, 2012 Between Lessor and Lessee
for TechDEC Lessor and Lessee previously entered into a one year lease for the
property described in Exhibit B. Said lease terminates on December 31, 2012. The
parties hereby extend the lease for the property described in Exhibit B under the terns
described herein for a period of five (5) years terminating on December 31, 2017. The
total Rent under this extension shall equal $25,000.08 per year (Monthly Rent Payment
of $2083.34) commencing on January 1, 2013 and ending on December 31, 2017. This
Rent is in addition to the Rent set forth in Section B of this Lease Agreement. The Rent
shall be paid in twelve (12) monthly installments due on the 5" of each month in an
amount equal to the Monthly Rent Payment as set forth herein.
G. 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).
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RESOLUTION 47 -12
EXHIBIT A
ACKNOWLEDGED & AGREED
This agreement shall be in full force and effect on this day of 2012.
LESSOR Metro Data Center, LLC LESSEE City of Dublin Ohio
U-3
In
Its: Its:
Notice Address:
Notice Address:
Metro Data Center, LLC City of Dublin Ohio
ATTN: Niles C. Overly5200 Emerald Parkway
565 Metro Place South Dublin, Ohio 43017
Columbus, Ohio 43017
City of Dublin Law Director
CERTIFICATION OF FUNDS
I hereby certify that funds required to meet the
City's obligation, payment, or expenditure under
this Agreement of Lease have been lawfully
appropriated or authorized for such purpose and
are free from any obligation now outstanding.
Angel L. Mumma
Deputy City Manager /Director of Finance
3
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RESOLUTION 47 -12
EXHIBIT A
EXHIBIT A
Metro Data Center, LLC - Dublin Entrepreneurial Center
565 Metro Place South
Suite 300
• Premises include 11,672 square feet of training and office space immediately adjacent to a new
data center and the TechDEC.
Signage: MDC will provide design consultation and recommendation of the following:
o Include branding of the "DEC" and "TechDEC" at the Street Level, 1 Floor lobby and
Foyer, 3` Floor Signage will be enhanced to include the "DEC" brand
• Office and Cubicle /Workstation Configuration
• Current Office Configuration, approx. 45 spaces: Inner Office (Metro Wall, no outer
windows); Office with window (Metro Wall); Office with window (drywall)
• Larger Video and Conference Room is available within current design
• Small conference and copier nook areas, are available within current design
• Storage Room — Shelving and tenant usage, is available within current design
• MDC Inner Cubicle 6x6 (approx. 16) (all units are within existing space at TechDEC)
Will allow sharing
o MDC Window Cubicle 6x8 (approx. 3 units, overlooking window)
• Shared Spaces
o Lunch & Learn (re -named to the DEC Cafe) — City Exclusive
o 1" Floor Training Room — MDC -City Split 75% City of Dublin, 25% MDCl st Floor
Training Room based upon an annual schedule of 7 by 24 by 365 days of
potential availability; Metro Data Center, LLC agrees to guarantee the City of
Dublin 100% control in scheduling of this space; Metro Data Center, LLC has the
right to request up to 25% of the potential available time for its own use.
• Metro Data Center Facilities Agreement — The term of MDC's Facilities Agreement with DEC
tenants will be 12 months. MDC agrees to include a termination clause in such Facilities
Agreement that permits the tenants to terminate the Facilities Agreement after the completion of
the first 6 months, with 60 days written notice.
• Lessor will provide administration for, collect, and retain all rent, sponsorship, and other income
from tenants of the Premises, in such amounts as mutually agreed upon by Lessor and Lessee.
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RESOLUTION 47 -12
EXHIBIT A
EXHIBIT B
The City agrees to lease 1,000 square feet of meeting space at $25.00 per square foot to include all
furnishings for a total of $25,000.00 for each year of the Lease. 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.
Exhibit B describes additional conference room spaces located within Suite 300 and is not part of Exhibit A spaces.
Board Room (3007) and Conference Room (3006) spaces may be scheduled and are all accessible to all Tenants of
565 Metro Place South Suite 300.
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RESOLUTION 47 -12
EXHIBIT A
EXHIBIT C
H. DEC Tenant Fees - Office and Cubicle Spaces DEC Tenants will be required to
establish a Facilities Agreement with Metro Data Center, LLC. Fees will be based
on the following Rate Schedule and Terms.
1. Any adjustments to the "Rate Schedule" below must be mutually agreed by
Metro Data Center, LLC and the City of Dublin.
2. Definition of DEC Tenants:
a) Pre - Existing DEC Tenant
(i) Is a company or individual that currently has a signed lease or
rental agreement with the City of Dublin or the Building Owner
of the current DEC; located at Post Road; effective on or before
12/31/2012.
b) Moving DEC Tenant
(i) Is a company or individual that is defined as a Pre - Existing DEC
Tenant and has chosen to move to the New DEC located at 565
Metro Place South Suite 300.
C) New DEC Tenant
(i) Is a company or individual that is not currently defined as a Pre -
Existing DEC Tenant; and desires to locate their business at 565
Metro Place South Suite 300
3. Rate Schedule:
• Year 1 Starting 1 -1 -2013 — 12 -31 -2013
• South Metro Wall Offices
• Moving DEC Tenant
$24 per sqft
• New DEC Tenant
$25 per sqft
• West Dry -wall offices
• Moving DEC Tenant
$26 per sqft
• New DEC Tenant
$27 per sqft
• Inner Metro -wall offices (no windows)
• Moving DEC Tenant
$22 per sqft
• New DEC Tenant
$23 per sqft
• Cubicles —
• Moving DEC Tenant
• 6x6
$125 per month
• 6x8 (window)
$175 per month
• New DEC Tenant
• 6x6
$150 per month
• 6x8 (window)
$175 per month
• Hot Spot Cubicles
6
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RESOLUTION 47 -12
EXHIBIT A
Moving DEC Tenant or New DEC Tenant
• 6x6 $50 per month
• Year 2 Starting 1 -1 -2014 — 12 -31 -2014
• South Metro Wall Offices
• Moving DEC Tenant
$24 per sqft
• New DEC Tenant
$25 per sqft
• West Dry -wall offices
• Moving DEC Tenant
$26 per sqft
• New DEC Tenant
$27 per sqft
• Inner Metro -wall offices (no windows)
• Moving DEC Tenant
$22 per sqft
• New DEC Tenant
$23 per sqft
• Cubicles —
• Moving DEC Tenant
• 6x6
$125 per month
• 6x8 (window)
$175 per month
• New DEC Tenant
• 6x6
$150 per month
• 6x8 (window)
$175 per month
• Hot Spot Cubicles
• Moving DEC Tenant or
New DEC Tenant
• 6x6
$50 per month
• Year 3 Starting 1 -1 -2015 through 12 -31 -2015
• South Metro Wall Offices
• Moving DEC Tenant
$25 per sqft
• New DEC Tenant
$26 per sqft
• West Dry -wall offices
• Moving DEC Tenant
$27 per sqft
• New DEC Tenant
$28 per sqft
• Inner Metro -wall offices (no windows)
• Moving DEC Tenant
$23 per sqft
• New DEC Tenant
$24 per sqft
• Cubicles —
• Moving DEC Tenant
• 6x6
$150 per month
• 6x8 (window)
$175 per month
• New DEC Tenant
• 6x6
$165 per month
• 6x8 (window)
$190 per month
• Hot Spot Cubicles
• Moving DEC Tenant or
New DEC Tenant
• 6x6
$60 per month
• Year 4 Starting 1 -1 -2016 through 12 -31 -2016
o South Metro Wall Offices
• Moving DEC Tenant $25 per sqft
• New DEC Tenant $26 per sqft
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RESOLUTION 47 -12
EXHIBIT A
o West Dry -wall offices
• Moving DEC Tenant
$27 per sqft
• New DEC Tenant
$28 per sqft
• Inner Metro -wall offices (no windows)
$27 per sqft
• Moving DEC Tenant
$23 per sqft
• New DEC Tenant
$24 per sqft
• Cubicles —
$29 per sqft
• Moving DEC Tenant
• 6x6
$165 per month
• 6x8 (window)
$190 per month
• New DEC Tenant
• 6x6
$165 per month
• 6x8 (window)
$190 per month
• Hot Spot Cubicles
$200 per month
• Moving DEC Tenant or
New DEC Tenant
• 6x6
$60 per month
• Year 5 Starting 1 -1 -2017 through 12 -31 -2017
• South Metro Wall Offices
• Moving DEC Tenant
$26 per sqft
• New DEC Tenant
$27 per sqft
• West Dry -wall offices
• Moving DEC Tenant
$28 per sqft
• New DEC Tenant
$29 per sqft
• Inner Metro -wall offices (no windows)
• Moving DEC Tenant
$24 per sqft
• New DEC Tenant
$25 per sqft
• Cubicles —
• Moving DEC Tenant
• 6x6
$175 per month
• 6x8 (window)
$200 per month
• New DEC Tenant
• 6x6
$175 per month
• 6x8 (window)
$200 per month
• Hot Spot Cubicles
• Moving DEC Tenant or
New DEC Tenant
• 6x6
$70 per month
0
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