2016-07-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                           12 JULY 2016



3                        COOROY DATA CENTRE - LEASE OPTION TO MACH TECHNOLOGY GROUP PTY LTD
DOCUMENT INFORM AT ION




Author                           Property Officer, Michelle Stirling
                                 Corporate Services Department

Index                            ECM/ Subject/ 46.1 – Building Leases/ Applic #: LEAS13/0036 Cooroy Data
                                 Centre

Attachments                      Nil


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Property Officer to the Services & Organisation Committee
Meeting dated 12 July 2016 and authorise the Chief Executive Officer to extend the current lease
agreement to Mach Technology Group Pty Ltd over Lot 1 on SP221081 for a further two (2) year
period commencing 31 October 2016.



REPORT
The Cooroy Data Centre is located at 11A Maple Street, Cooroy (adjacent to the Cooroy Butter
Factory). Council constructed the Data Centre in 2008 as part of the Noosa Clever Networks
Project. The project was the subject of a funding agreement between Noosa Council and the then
Federal Department of Broadband, Communications and the Digital Economy.

Mach Technology successfully tendered to operate the Data Centre and a 5-year lease
commenced on 31 October 2008. The lease agreement provided for free rent for the first 3 years,
and a negotiated commercial rental from year 4 due to the Data Centre being considered an
emerging industry at the time.

Pursuant to the lease agreement Mach Technology was awarded 1 x 3-year option commencing
31 October 2013. An additional option falls due this year, and the incumbent has requested in
writing to exercise the final (2) year option commencing 31 October 2016.

Accordingly, the purpose of this report is to extend the current lease for a further 2 years
commencing 31 October 2016. The incumbent has generally discharged its obligations in relation
to the current lease to date.



Previous Council Consideration

Nil.




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