File #: 2019-6503   
Type: Consent Calendar Item
Body: City Council
On agenda: 2/19/2019
Title: Introduction of Ordinance Authorizing the Interim City Manager to Negotiate and Execute a Fifteen-Year Lease with Ten- and Five-Year Options to Extend, Substantially in the Form of the Attached, with Nautilus Data Technologies, Inc., a Delaware Corporation, for Building 530, an 82,251-Square Foot Building Located at 120 West Oriskany Avenue, and the Adjacent Building 600, an 343-Square Foot Building, at Alameda Point. (Base Reuse 819099)
Attachments: 1. Exhibit 1 - Premises, 2. Exhibit 2 - Form of Lease, 3. Ordinance, 4. Correspondence - Updated 2-19
Title

Introduction of Ordinance Authorizing the Interim City Manager to Negotiate and Execute a Fifteen-Year Lease with Ten- and Five-Year Options to Extend, Substantially in the Form of the Attached, with Nautilus Data Technologies, Inc., a Delaware Corporation, for Building 530, an 82,251-Square Foot Building Located at 120 West Oriskany Avenue, and the Adjacent Building 600, an 343-Square Foot Building, at Alameda Point. (Base Reuse 819099)

Body

To: Honorable Mayor and Members of the City Council

From: David L. Rudat, Interim City Manager

EXECUTIVE SUMMARY

This action will authorize the Interim City Manager to negotiate and execute a fifteen-year lease with ten- and five-year options to extend, substantially in the form of the attached lease, with Nautilus Data Technologies, Inc., a Delaware corporation, for development of a water-cooled data storage facility in Building 530 and Building 600 at Alameda Point.

BACKGROUND

Nautilus Data Technologies has been interested in developing a data storage facility at Alameda Point for approximately two years. Initially, Nautilus was interested in locating its water-cooled data storage system on a barge at the piers, a technology it is currently piloting at the Port of Stockton. However, after touring Alameda Point and seeing Building 530 and its proximity to the water, lack of windows, and privacy, the company thought the building would be ideal for a land-based, water-cooled data storage facility.

Over the years, the City of Alameda (the City) has been approached by numerous data storage companies interested in locating at Alameda Point. Typically, this has not been an industry that meets the overall goals for redeveloping the base, which include job and sales tax generation. However, Nautilus' sustainable data center design won the 2016 European Breakthrough Innovation Award and the 2015 U.S. Startup of the Year Award. Innovative technologies, especially green energy, are a key sector of the Alameda econo...

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