REPORT TO COUNCIL
SUBJECT
Title
Amendment No. 2 to Special Facilities Agreement with CoreSite Real Estate Limited Partnerships on Coronado Drive and Stender Way
Report
BACKGROUND
On January 25, 2011, Council adopted Resolution 11-7817 to approve the Tentative Parcel Map for 3000 Coronado Drive, to subdivide existing four 4.1 acre parcel into two industrial parcels of 1.4 acres and 2.7 acres each. The CoreSite Corporation dedicated the 1.4 acre parcel to SVP for construction and operation of a general distribution electric substation.
On December 6, 2011, Council approved a Special Facilities Agreement for Electric Services with CoreSite Coronado Stender, L.L.C. and CoreSite Real Estate 2901 Coronado, L.L.C., (CoreSite L.L.C.) for the CoreSite Data Center Development. CoreSite L.L.C paid their pro rata share of the development fees for the 40 MVA of capacity reserved at that time. A 60kV distribution substation was constructed and the 60kV sub-transmission system was modified. SVP agreed to design, construct, and operate the substation facilities to service CoreSite L.L.C., including the anticipated expansion of the CoreSite data center development, as well as other retail electric customers.
On January 8, 2013, Council approved Amendment No. 1 to the Special Facilities Agreement in order to provide interim power to the CoreSite facility at 2972 Stender ay and temporary power to 2900 Stender Way.
DISCUSSION
It has been less than five (5) years since the Substation Facility construction was completed on September 30, 2015. Per the terms of the Original Agreement as amended, CoreSite could request and pay its pro rata share of the cost of any additional capacity available for a fee of $200 per kVA during this time period. This will allow CoreSite to continue their load growth within the City for an additional $2,000,000 payment to Silicon Valley Power.
Therefore, staff recommends to enter into Amendment No. 2 with CoreSite Real Estate 2901 Coronado, L.P...
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