STRATEGIC PRIORITY: Core
AGENDA DATE: June 25, 2025
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Facilities and Real Estate Management
EXECUTIVE: Donzell Gipson
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SUBJECT
Title
Authorize an amendment to an existing lease agreement with Kyndryl, Inc. to extend the lease agreement for an additional fourteen months for approximately 5,909 square feet of office space located at 1000 Belleview Street, to be used as a data center for the period February 1, 2026 through March 31, 2027 - Estimated Revenue: TBD - City Manager to negotiate a nominal fee
Body
BACKGROUND
This item, on behalf of the Department of Information and Technology Services, authorizes an amendment to an existing lease agreement with Kyndryl, Inc. (“Kyndryl”) to extend the lease agreement for an additional fourteen months for approximately 5,909 square feet of office space located at 1000 Belleview Street. The fourteen-month extension will provide for the continued use as a data center for Kyndryl.
The Dallas City Code Section 2-44(6) authorized the Director of Facilities and Real Estate Management (the “Director”) to approve short-term leases.
Kyndryl currently maintains a short-term lease agreement, amended administratively by the Director to expire on January 31, 2026. It is the desire of both parties to extend the lease for an additional fourteen months and commencing on February 1, 2026 through March 31, 2027, the City shall no longer be obligated to contribute a monthly $50,000.00 maintenance fee payment to Kyndrl.
The fourteen-month extension will begin on February 1, 2026 through March 31, 2027.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
Estimated Revenue: TBD - City Manager to negotiate a nominal fee
OWNER/EXECUTIVE
Kyndryl, Inc.
Martin Schroeter, Chief Executive Officer
MAP
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