HomeMy WebLinkAbout24-1881ORDINANCE NO. 24-1881
AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL
CORPORATION (THE “CITY”), AUTHORIZING THE CITY MANAGER TO EXECUTE A
THIRD AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY AND CORE
SCIENTIFIC INC., A DELAWARE CORPORATION; PROVIDING FOR AN EFFECTIVE
DATE
WHEREAS, the City and Core Scientific, Inc. (“Lessee”) entered into that certain Lease
Agreement, effective as of September 3, 2021 (the “Initial Lease”) pursuant to which Lessee
currently leases the Leased Premises (as defined in the Initial Lease) from the City; and
WHEREAS, the City and Core Scientific, Inc. entered into the second amendment to the
Initial Lease (“Amendment No. 2”) on August 20, 2024 which is incorporated herein; and
WHEREAS, the City and Core Scientific have agreed to terms and conditions for
Amendment Number 3 to the Initial Lease (“Amendment No. 3”) as Exhibit “A” and incorporated
herein for ail purposes; and
WHEREAS, Lessee requested additional leased property to accommodate Lessee’s intent
to convert the entire project from cryptocurrency operation to High Performance Computing
operations to host artificial intelligence applications on the Leased Premises; and
WHEREAS, the City Council further finds that Amendment No. 3 to the Lease is in the
best interest of the customers of Denton Municipal Electric,
NOW, THEREFOR, THE COUNCil OF THE CITY OF DENTON HEREBY ORDAINS:
SECTiON 1. The recitations contained in the preamble of this ordinance are incorporated
herein by reference as findings of the City Council.
SECTION 2. The City Council approves and authorizes the City Manager, or their
designee, and City Secretary, or their designee, to execute, attest and deliver, respectively,
Amendment No. 3 to the Lease, attached as Exhibit “A”, with Core Scientific, Inc.
SECTION 3. The City Council approves and authorizes the City Manager, or their
designee, to take such additional actions as the City Manager, or the designee, determines to be
necessary and advisable to continue to effectuate the purpose, terms, and conditions ofAmendment
No. 3 to the Lease.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by Gerard Hudspeth and seconded by
Brandon Chase McGee, the ordinance was passed and approved by the following vote [7 - 0] :
CITY LESSEE
Aye
X
X
X
X
X
X
X
Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck. District 2 :
Paul Mleltzer. District 3 :
Joe Holland. District 4:
Brandon Chase McGee, At Large Place 5 :
Jill Jester, At Large Place 6:
PASSED AND APPROVED this the 19th day of November, 2024.
GERARD HUDSPETH, MAYOR
ATTEST:
LAUREN THODEN, CITY SECRETARY
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APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
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CITY LESSEE