Hamilton OH Data Center Advantage

Green Can offer 100% renewable en-ergy to interested companies

Low Cost Competitively priced green hydroelectric energy - consis-tently one of the most afford-able rates in the region

Stable RatesStable energy rates projected due to diverse energy sources that will include 70% clean hy-droelectric power not subject to market fluctuations

Abundant CapacityWell-prepared to handle due to its plentiful energy capacity and supply

Superior Reliability Won the platinum-level award for Reliable Public Power Provider from American Public Power Association in 2012 for the 4th consecutive time - only 5% nationally receive each year

Best Water in the World Ranked “Best Tasting Water in the World” in 2010. The water comes from a large un-derground aquifer, providing Hamilton with ample capacity of 56° water

City-Wide Fiber 60 mile double end/loop fed fiber optic network poised to be used for economic development

The State of Ohio offers numerous incentives for data center development, including a sales tax exemption on equipment investments of over $100 million

No tangible personal property tax

Hamilton works with companies from the beginning of the project to ensure that service to the site is adequate and explore ways to control and lower their utility costs as the facility and operations expands

Hamilton utilizes a wide variety of business incentives, including Enterprise Zone, Local Job Creation Tax Credit, and Utility Economic Development Agreement

Hamilton, Ohio is an ideal location for data centers. Located in heart of the Cincinnati Dayton metroplex, the region is home to 15 Fortune 500 companies and over 3 million people. Hamilton offers data center operators a city-wide network of 60 miles of double end/loop-fed fiber optics, low natural disaster risk, and competitively priced and highly reliable energy that can be certified 100% renewable.

Utilities Incentives

The City of Hamilton’s Data Center Advantage

www.hamiltonohiobusiness.com 513-785-7070

Why Hamilton? » Low & stable utility rates » Green energy » Superior utility infrastructure

Hamilton, Ohio is an ideal location for a data center due to its utilities, access to workforce, and proximity to major markets. But what truly sets Hamilton apart is its green and low-cost utilities. Hamilton owns and operates all four major utilities: electric, natural gas, water, and wastewater. Hamilton is consistently among the most affordable providers of utilities in the entire state of Ohio and, due to long-term investments in hydroelectric, will have 70% renewable energy in 2015.

The City has invested in its utility systems over the years to ensure that it provides the most cost-effective, responsive, and reliable service possible. As a result of the City’s efforts to continuously improve its systems, Hamilton’s low-cost power provides its customers with highly competitive and stable rates as compared to other providers in the region.

Hamilton’s Greenup Hydroelectric Facility


ElectricHamilton is an ideal location for a data center because of its ample electric capacity, superior reliability, and its ability to provide this electricity at or below market rate with the added value that comes with renewable energy. Hamilton has been able to keep rates low and stable and, because of its diverse energy sources that will include over 70% clean hydroelectric power not subject to market fluctuations, Hamilton projects stable rates for years to come.

Low CostHamilton features competitive rates that are lower than nationwide, regional, and state rates. Based on data collected by the Public Utilities Commission of Ohio (PUCO), Hamilton’s electric utilities rates are very competitive with utilities across Ohio. A study of a typical January 2013 electric bill found that Hamilton had the lowest rates in southwest Ohio.

The City of Hamilton works with companies from the beginning of the project to ensure that service to the site is adequate and explore ways to control and lower their utility costs as the facility and operations expands in Hamilton.

GreenHamilton’s electric system is green and getting greener. Currently, 49% of Hamilton’s electric power comes from renewable hydroelectric generation. When the Meldahl hydroelectric facility is completed in 2014, 70% of the City’s power will come from renewable sources. In 2015, 100% of Hamilton’s power will come from sustainable energy.

Since Hamilton owns its own hydroelectric facilities and has diversified its energy portfolio, this renewable energy does not come with the usual premium - Hamilton provides renewable energy at market rates prices projected to be stable for years to come.

One of Hamilton’s power plants which has been converted to natural gas, reducing emissions. Photo courtesy of Scott Merrill.


ElectricSuperior ReliabilityHamilton’s electric system provides world-class reliability to its customers. Hamilton’s electric system won the platinum-level award for Reliable Public Power Provider (RP3) from American Public Power Association in 2012, the 4th consecutive time the City of Hamilton has received this award. This award recognizes the top 5% of all public power providers for reliability, safety, system improvement, and workforce development.

According to the PUCO, Hamilton’s total outage times in 2012 were less than half of the best investor-owned utility in Ohio and the number of outages per customer was as low as the best investor-owned utility. One reason Hamilton’s electric utility is so reliable is the system’s redundancy: all electric substations are supplied from two separate sources. The City’s investments in a Smart Grid and an outage management system have further enhanced electrical reliability.

Stable RatesHamilton’s electric rates has a proven track record of being stable and our rates are projected to be stable for years to come. According to the PUCO, between 2005 and 2012, Hamilton’s electric rates had the lowest overall increase in southwest Ohio, rising 2.2% annually as compared to the average 5.5% annually. Hamilton’s rate increases were among the five best of all 115 retail electric suppliers in Ohio. With the majority of our power supplied from hydroelectric sources and the remainder coming from a balance of different fuel types and geographic locations, Hamilton’s electric power is impacted little by market volatility. While other utilities are increasing their rates, Hamilton projects stable rates, providing a great value today and an even better value in the future.

Ample CapacityHamilton is well prepared to handle additional loads due to its plentiful energy capacity and supply. Hamilton’s robust distribution system has room for up to 75% load growth.

Construction of the Meldahl hydroelectric facility, slated to open in October 2014. Photo courtesy of Aerial Innovations of Tennessee


Water

Fiber Optic NetworkHamilton has an extensive fiber optic network that the City intends to utilize for economic development. The City has over 60 miles of city-wide, loop-fed fiber optics. Hamilton will be able to deliver cost-effective fiber broadband services to businesses, schools, government organizations, healthcare organizations and other community anchors, in conjunction with private telecommunications providers.

Reliability & RedundancyThe fiber optic network’s ring topology provides important distribution network redundancy, which is sometimes lacking in commercial broadband networks. In many cases, metropolitan fiber networks may contain ring redundancy in the major backbone segments, but only provide linear pathways in the distribution network down to local service zones. The topology of Hamilton’s network will offer redundancy throughout the majority of the distribution network as well. This provides overall higher reliability and improved service levels for customers connecting to the network.

Last-Mile FiberEach service zone in the distribution layer has significant reach into Hamilton’s business and residential districts. In most cases, the existing fiber network overlays directly onto the pole infrastructure which will allow for easy and cost-effective transitions and interconnections with new last-mile fiber.

Hamilton is situated on top of one of the largest and highest quality aquifers in the U.S. Because of the large aquifer and the City’s water management systems, Hamilton has abundant water capacity.

About the Aquifer• Total aquifer storage of approximately 1.5 trillion gallons of groundwater. • Yields in excess of 2,000 gallons of water per minute are possible in wells near large streams. • Much of the groundwater maintains a constant temperature of 56 degrees Fahrenheit. • Principal drinking water source for an estimated 1.6 million people. • Appropriate use will ensure that the aquifer is available as a long-term healthy fresh water supply.

Hamilton’s water is also of the highest quality. In 2010, Hamilton’s water was ranked “The Best Tasting Tap Water in the World” at the Berkeley Springs International Water Tasting Competition.


Workforce

Source: Esri Community Analyst

Fast Facts435kWorkforce within 30 minute drive time from Hamilton

Top Occupations30 minute drive time

Blue Collar

Services

Administrative Support

Sales

ProfessionalManagement/

Business/Financial

White Collar

0%

10%

20%

30%

40%

50%

Finance/Insurance/Real Estate

Retail TradeManufacturingServices

Top Industries30 minute drive time

The City of Hamilton, located in the northernmost section of Cincinnati MSA, is situated in the heart of the Cincinnati-Dayton metroplex. This means that companies located in Hamilton can draw from the regions over 3 million people.

Hamilton

Dayton

Cincinnati

15, 30, and 60 minute drive time to Hamilton

Source: Esri Community Analyst

Information Technology in the Greater Cincinnati MSAOccupation Title Employ-

mentHourly Mean

Hourly Median

Computer Systems Analysts 5,410 $39.69 $38.43Computer Programmers 2,400 $32.70 $31.80Software Developers, Applications 5,340 $37.58 $37.41Software Developers, Systems Software 1,050 $39.43 $38.86

Network and Computer Systems Administrators 3,040 $32.05 $31.69

Computer Support Specialists 4,920 $21.89 $21.19Information Security Analysts, Web Developers, and Computer Network Architects

2,240 $36.39 $36.11

Total IT Occupations 30,850 $35.79 $34.88


Threat of Natural DisasterSouthwest Ohio’s threat of natural disasters is comparatively low to much of the rest of the country.

Hamilton

Hamilton

Hamilton


Community Reinvestment Area

Enterprise ZoneThe City of Hamilton may grant property tax incentives to enterprises that agree to establish, expand, renovate, or occupy a facility within a designated enterprise zone and agree to retain or create employment at the project’s location. A business must finalize an agreement prior to project commencement.

The maximum allowable benefit to be extended to qualifying companies that does not require local school board approval is a 75%, 10-year real property tax exemption. Real property tax exemptions greater than 75%, 10 years, require local school board approval.

ExampleAssumptions: 70,000 S/F building at $50 per S/F, total property investment $3.5 million, 75% tax abatement

Total Possible Property Tax AbatementAnnual $54,384.92 10 Year Total $543,849.19

Final abatement value will be determined by the Butler County Auditor’s Office

The Community Reinvestment Area (CRA) provides property owners a tax exemption for investing in property improvements. The goal of the CRA is to incentivize revitalization where barriers to investment exist. The CRA tax exemption will be available for both residential and commercial development and can be utilized throughout Hamilton.

Commercial Properties• New construction• Expansion• Building improvements• Commercial or industrial

Applications will be considered on a case-by-case basis for investment dollar and job creation potential. Final exemption value is determined by the Butler County Auditor. Property owners submit an application to the City of Hamilton prior to construction or remodeling

Local & State Incentives

Maximum Term in Years % of New Value Exempted* Min. New Investment

Renovation 12 50% $5,000

New Construction 15 50% $5,000

*Maximum without school board approval

Commercial Revolving Loan FundThe City of Hamilton’s Revolving Loan Fund (RLF) provides low interest loans for expansion projects by private, for-profit businesses occurring in Hamilton. Loans are made primarily for the purchase of machinery and equipment, although purchase, renovation and/or construction of buildings are also eligible.


The City of Hamilton Local Job Creation Tax Credit Program offers eligible companies a tax credit against their local corporate earnings tax. This program is similar to the Ohio Job Creation Tax Credit, with the exceptions that the tax credit is granted at the local level and it is a non-refundable credit. Currently, by State law, eligibility for this credit is dependent upon the State of Ohio granting a tax credit through the Ohio Job Creation Tax Credit Program.

Local Job Creation Tax Credits

Local & State Incentives

Ohio Job Creation Tax CreditsThe Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within 3 years) with a minimum annual payroll of $660,000 that pay at least 150% of the federal minimum wage.

Tax Increment FinancingTax Increment Financing (TIF) is an economic development mechanism available to local governments in Ohio to finance public infrastructure improvements. A TIF works by locking in the taxable worth of real property at the value it holds at the time the authorizing legislation was approved.

Payments derived from the increased assessed value of any improvement to real property beyond that amount are directed towards a separate fund to finance the construction of public infrastructure defined within the TIF legislation. Hamilton has enacted legislation to utilize TIF financing and often works with potential development to allow parcels to benefit from TIF financing.

Economic Development AgreementWith municipally owned and operated utilities, the City of Hamilton is not only one of Ohio’s lowest-cost providers of electricity, natural gas, water & wastewater, but is also widely acknowledged for its superior quality. The City of Hamilton is committed to working with your company from the beginning to ensure that service to the site is ample and will explore ways to control and lower utility costs as you grow.

Data Center ExemptionThe State of Ohio offers a sales and use tax exemption for the purchases of certain tangible personal property that will be used at an eligible computer data center. The business must invest at least $100 million in computer data center equipment and maintain at least $1.5 million in annual payroll. The payroll requirement must be met by the third year of the exemption agreement. One applicant business can submit an exemption application on behalf of itself and other businesses operating a data center at the facility and the total capital investment and payroll levels of all businesses in the same facility are combined toward meeting the exemption eligibility requirement. A business may still receive the Data Center Exemption if the business leases the data center to other businesses and does not itself provide “electronic information services.”


Property Highlight:Vora Technology Park

Class-A Office Space• 365,000 square feet of flexible office space• Class A interior and exterior finishes• 4-story atrium with skylights• Campus-style facility• 5 passenger & 2 freight elevators & 4 escalators• Shipping/receiving docks• Lighted parking areas for 850 vehicles• 100 seat Disaster Recovery Center for business continuity operations• On-site conference center with worldwide video conferencing capabilities

Facility Redundancy• Multiple fiber optic paths and network providers into and out of the campus• Redundant and independent commercial power (13,800 volt) sources• Redundant mechanical systems controlled by digital control system networked to a

Building Automation System• Redundant geo-thermal wells for cooling system that draws from the Great Miami Aquifer

which is 58 degrees year-round, providing an excellent means of reducing data center heat as well as reducing utility costs

• 40,000 gallons of on-site fuel oil storage

Green Features• Can certify 100% renewable energy for businesses• High efficiency geo-thermal well water cooling system which draws from Great Miami

Aquifer, one of the most abundant in the country• Grey water from cooling system used for irrigation on both Vora’s property and Miami

University Hamilton’s property

While many places boast of how well-suited they are for data centers, few have an asset like Vora Technology Park. Vora Technology Park offers data centers unparalleled redundancies in a state-of-the-art facility.

Vora Technology Park. Photo courtesy of Flying Farm. For more information on Vora Technology Park, visit www.voratechpark.com or contact Cheryl Vitek at 513-867-7277 or [email protected]


Fremont EnergyFremont. OH

Greenup HydroFranklin Furnace, OH

Prairie State EnergyLively Grove, IL

Meldahl HydroFoster, KY

Duke Energy

U.S.NationalPower

Grid

TRANSMISSIONSUBSTATION #11City of Hamilton



DISTRIBUTIONSUBSTATION #1City of Hamilton


VORA TECHNOLOGY PARK

ELECTRIC UTILITY DIAGRAMVORA TECHNOLOGY PARK

TRANSMISSION

THIRD STREETPOWER PLANT

City of Hamilton

FORD CANALHYDRO PLANT

City of Hamilton

JV II PEAKINGPOWER PLANTCity of Hamilton

BlackStart



Electric Utility DiagramThis conceptual diagram illustrates Hamilton’s electric utility grid, which provides Vora Technology Park with superior energy reliability. Vora Technology Park is served by three different substations that receive power from a multitude of sources, including two local power plants, two regional power plants, and two regional hydroelectric facilities.


Contact UsJody T. GundersonEconomic Development DirectorCity of Hamilton, [email protected]

OHIN

KY

465

Proximity toMajor MarketsCITYCincinnati, OHDayton, OHColumbus, OHIndianapolis, INLexington, KYLouisville, KYToledo, OHDetroit, MI Cleveland, OHChicago, ILPittsburgh, PA

MILES253598

110110140190247248274281

About HamiltonLocated in the heart of the Cincinnati-Dayton metroplex, Hamilton is Butler County’s Seat of government and its center for finance, industry, arts and culture. Hamilton, Ohio is the second largest city in the tri-state Cincinnati region. The City of Hamilton is unique in that it owns and operates all four major utilities: electric, natural gas, water and wastewater. It is consistently among the most affordable providers of utilities in the entire state of Ohio. Along with its affordability, Hamilton is among the most progressive in sustainable electric power generation. Approximately 65% of its power generation will come from renewable resources by 2014.

Hamilton was founded in 1791 as an army outpost named Fort Hamilton after founding father, Alexander Hamilton.

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Hamilton OH Data Center Advantage