The City of Hamilton’s Data Center Advantage 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 Green
Can offer 100% renewable energy to interested companies
Low Cost
Competitively priced green hydroelectric energy - consistently one of the most affordable rates in the region
Stable Rates
Stable energy rates projected due to diverse energy sources that will include 70% clean hydroelectric power not subject to market fluctuations
Abundant Capacity
Well-prepared to handle due to its plentiful energy capacity and supply
Incentives 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 underground 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
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
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Electric Hamilton 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 Cost Hamilton 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.
Green Hamilton’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.
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Electric Superior Reliability Hamilton’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 investorowned 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 Rates Hamilton’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 Capacity Hamilton 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
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Fiber Optic Network Hamilton 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 & Redundancy The 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 Fiber Each 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 costeffective transitions and interconnections with new last-mile fiber.
Water 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.
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Workforce
Fast Facts
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.
435k
15, 30, and 60 minute drive time to Hamilton
Workforce within 30 minute drive time from Hamilton
Top Occupations 30 minute drive time
Dayton
Blue Collar
Hamilton
Services
Cincinnati
Administrative Support
White Collar
Sales Management/ Business/ Financial Professional
Top Industries
Source: Esri Community Analyst
Information Technology in the Greater Cincinnati MSA Occupation Title
Employment
Hourly Mean
30 minute drive time 50%
Hourly Median
40%
Computer Systems Analysts
5,410 $39.69 $38.43
Computer Programmers
2,400 $32.70 $31.80
Software Developers, Applications
5,340
Software Developers, Systems Software
1,050 $39.43 $38.86
20%
Network and Computer Systems Administrators
3,040 $32.05 $31.69
10%
Computer Support Specialists
4,920
Information Security Analysts, Web Developers, and Computer Network Architects
2,240 $36.39 $36.11
Total IT Occupations
$37.58
$37.41
30%
$21.89 $21.19 0%
30,850 $35.79 $34.88
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Services Manufacturing Retail Trade
Source: Esri Community Analyst
513-785-7070
Finance/ Insurance/ Real Estate
Threat of Natural Disaster Southwest Ohio’s threat of natural disasters is comparatively low to much of the rest of the country.
Hamilton
Hamilton
Hamilton
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Local & State Incentives Community Reinvestment Area 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 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
Enterprise Zone The 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.
Example
Assumptions: 70,000 S/F building at $50 per S/F, total property investment $3.5 million, 75% tax abatement Total Possible Property Tax Abatement Annual
$54,384.92
10 Year Total
$543,849.19
Final abatement value will be determined by the Butler County Auditor’s Office
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Local & State Incentives Ohio Job Creation Tax Credits The 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.
Local Job Creation Tax Credits 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.
Commercial Revolving Loan Fund The 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.
Economic Development Agreement With 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.
Tax Increment Financing Tax 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.
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Property Highlight:
Vora Technology Park 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.
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
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 cvitek@voraventures.com
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Electric Utility Diagram ELECTRIC UTILITY DIAGRAM
This 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.
VORA TECHNOLOGY PARK
Prairie State Energy Lively Grove, IL
Greenup Hydro Franklin Furnace, OH
Meldahl Hydro Foster, KY
Fremont Energy Fremont. OH
JV II PEAKING POWER PLANT City of Hamilton U.S. National Power Grid Duke Energy
TRANSMISSION SUBSTATION #11 City of Hamilton
TRANSMISSION SUBSTATION #15 City of Hamilton
THIRD STREET POWER PLANT City of Hamilton Black Start
VORA TECHNOLOGY PARK DISTRIBUTION SUBSTATION #4 City of Hamilton
DISTRIBUTION TRANSMISSION SUBSTATION #13 SUBSTATION #13 City of Hamilton City of Hamilton
DISTRIBUTION SUBSTATION #1 City of Hamilton
DISTRIBUTION SUBSTATION #9 TRANSMISSION City of Hamilton FORD CANAL HYDRO PLANT City of Hamilton
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About Hamilton Located 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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Proximity to Major Markets
IN
CITY Cincinnati, OH Dayton, OH Columbus, OH Indianapolis, IN Lexington, KY Louisville, KY Toledo, OH Detroit, MI Cleveland, OH Chicago, IL Pittsburgh, PA
OH
KY
Contact Us
Jody T. Gunderson Economic Development Director City of Hamilton, Ohio 513.785.7070 gundersoj@hamilton-oh.gov
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