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HomeMy WebLinkAbout24-1383ORDINANCE NO. 24- 1383 AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE WITH SPRE DENTON TX, LLC FOR APPROXIMATELY 4 ACRES OF CITY-OWNED PROPERTY LOCATED IN THE CITY AND COUNTY OF DENTON, TEXAS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") owns the RD Wells Sub Station (SUB) and property around it located in Denton, TX and owns certain real property at and around the SUB (the “SUB Property”); WHEREAS, SPRE Denton TX, LLC (“Lessee”), a provider of high efficiency computing centers, wishes to enter into a lease with the City, pursuant to that certain Lease Agreement attached hereto as Exhibit A and made a part hereof for all purposes (the “Lease”), for certain real property located at the SUB Property consisting of one tract, being approximately 4 acres in the City of Denton, Denton County, Texas (the “Leased Premises”); WHEREAS, Lessee further wishes to develop a high efficiency computing center on the Leased Premises and to enter into a Power Purchase Agreement for the purchase by Lessee from City of electric power in support thereof (the “PPA”); WHEREAS, the City Council finds it is in the public interest to enter into the Lease; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference as true and as if fully set forth in the body of this Ordinance. SECTION 2. The City Manager, or designee, is hereby authorized to execute the Lease attached hereto as Exhibit A and made a part hereof for all purposes. SECTION 3. The City Manager, or designee, is hereby further authorized to take any other actions that may be necessary, appropriate or convenient to exercise the City’s rights and to perform the City’s obligations under the Lease including, but not limited to, amending the Lease to extend the term of the Lease for up to ten (10) additional years beyond the initial term in accordance with the provisions of the Lease and contemporaneously and consistent with any extension(s) of the PPA. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. [Signatures to appear on the following page.] The motion to approve this Ordinance was made by J,, A.1\a_J and seconded by O.'n)"'- Ch,4 beav+The Ordinance was passed and approved by the following vote U - b :' - - -- ' Aye Nay Abstain J Z Z Absent Mayor Gerard Hudspeth: Vicki Byrd, District 1 : Brian Beck. District 2: Paul Meltzer. District 3 : Joe Holland. District 4: Brandon Chase McGee, At Large Place 5 : Jill Jester, At Large Place 6: JZ U/ \/ V/ 2 0 2 4 P A S S E D /If4bL INE 1:) /1111L P P R 1C) V E D this the J day of ASb ) \ Z:=%//' - GERARD HUDSPETH, MAYOR ! ATTEST LAU THODEN, CITY SECRETARYakmBY APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY \*{ '.d