On the agenda: Concord meeting — hyperscale (Feb 23)

Civic Center
1950 Parkside Drive
Concord, CA 94519
www.cityofconcord.org

COMMITTEE MEMBERS
Carlyn S. Obringer, Chair
Pablo Benavente, Member

Special Meeting of the
Housing and Economic
Development
Committee
Monday,
February 23, 2026

5:30 p.m.

Garden Conference
Room
1950 Parkside Drive,
Wing A
Concord, CA

Information for the public on participation at Committee meetings can be found on the back of
the Speaker Identification Card. Should you have any questions after consulting the Speaker
Identification Card, please contact staff prior to the Committee meeting.
AGENDIZED ITEMS – The public is entitled to address the Committee on items appearing on
the agenda before or during the Committee’s consideration of that item. Each speaker will be
limited to approximately three minutes.
1.

ROLL CALL

2.

REPORTS
The public is entitled to address the Committee on items appearing on the agenda before or during
the Committee’s consideration of that item. Each speaker will be limited to approximately three
minutes. Please see “How to Submit Public Comments” above.

a.
3.

Proposed Public-Private Partnership for Concord Center for Connectivity at
2000 Clayton Road. Report by Justin Ezell, Assistant City Manager.
ADJOURNMENT
1

NOTICE TO THE PUBLIC
There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative
decisions and orders which require a hearing by law, the receipt of evidence, and the exercise of
discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure §1094.6).
Further, if you challenge an action taken by the City Council in court, you may be limited by California
law to raising only those issues you or someone else raised in the hearing or in a written
correspondence delivered to the City Council prior to or at the hearing.
In accordance with the Americans with Disabilities Act and California Law, it is the policy of the City of
Concord to offer its public programs, services and meetings in a manner that is readily accessible to
everyone, including those with disabilities. If you are disabled and require a copy of a public hearing
notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other
accommodation, please contact the ADA Coordinator Tianjun Cao at (925) 671-3243 or
[email protected], at least 24 hours in advance of the meeting. Advance notification
within this guideline will enable the City to make reasonable arrangements to ensure accessibility.
Distribution:

City Council
Valerie Barone, City Manager
Susanne Brown, City Attorney
Justin Ezell, Assistant City Manager
Joelle Fockler, City Clerk

2

2.a

Staff Report
Date:

February 23, 2026

To:

Council Committee on Housing & Economic Development

Prepared by:

Justin Ezell, Assistant City Manager
[email protected]
(925) 671-3155

Subject:

Proposed Public-Private Partnership for Concord Center for
Connectivity at 2000 Clayton Road

Report in Brief
Lattice Industries, Inc., through its nonprofit affiliate The Data Institute, proposes a
partnership with the City of Concord to acquire and redevelop the former Bank of
America Technology Center at 2000 Clayton Road into the Concord Center for
Connectivity, a regional innovation hub focused on advanced data services, AI-driven
infrastructure, and workforce training. The proposed project would transform the
400,000-square-foot facility at 2000 Clayton Road into a Tier IV-ready resilience hub
that provides shared AI and data services, cybersecurity operations, and workforce
training programs. The estimated cost ranges from $125 million to $250 million, phased
over acquisition, facility upgrades, and Net Zero improvements. Lattice Industries is
seeking City participation through a Joint Powers Authority or direct financing.
Recommended Action
Receive the staff report, discuss its contents, and provide feedback to staff on any
additional information or analysis the Committee would require to formulate a
recommendation on next steps.
Background
The property at 2000 Clayton Road has been vacant since 2023 and was originally
purpose-built for secure data operations. Its prime location near BART and major
highways makes it ideal for redevelopment. The vision for the Concord Center for
Connectivity includes an AI Factory and high-performance computing clusters, a Dataas-a-Commodity Marketplace, a cybersecurity operations center, AR/VR workforce
training facilities, and research and innovation labs. The project is expected to generate
200 to 400 construction jobs, create more than 100 permanent positions, and provide

Page 1 of 43

Committee Staff Report
Agenda Item No. 2.a
February 23, 2026

thousands of annual workforce training opportunities. These outcomes support
Concord’s long-term economic vitality and downtown revitalization goals.
Analysis
The project will be implemented in three phases: acquisition and initial upgrades,
expansion of AI and marketplace capabilities, and Net Zero energy improvements. The
facility’s hardened structure, redundant systems, and 14–15MW power capacity make it
uniquely suited for this purpose. Funding options include forming a Joint Powers
Authority (JPA) with Diablo Valley College (DVC) to issue tax-exempt lease revenue
bonds through either the California Statewide Communities Development Authority
(CSCDA), a City-only financing approach using similar bonds, or issuing bonds secured
by the non-profit corporation formed by Lattice to own and operate the project. The last
funding option would require Lattice to obtain a major bank letter of credit or a financial
guarantee from a credit-worthy entity to guarantee the bond commitment of the nonprofit. Under all three funding options, the plan would be for the non-profit entity to
refinance the project’s debt and relieve the obligations of the City, JPA, and Lattice’s
guarantor, as the case may be, once the Center itself is creditworthy.
While Lattice Industries has proposed the potential formation of a Joint Powers
Authority DVC, discussions to date have remained at the staff level and, to our
knowledge, have not been formally presented to the Governing Board of the Contra
Costa Community College District. Although DVC staff have expressed interest in the
workforce training and related opportunities associated with this proposal, that interest
is currently limited to staff. City of Concord staff have not yet met with the Contra Costa
Community College District President to initiate formal discussions. As with the City of
Concord’s internal processes, individual departments (or in this case, DVC) may explore
ideas, but no proposal can advance without formal consideration and approval by the
governing board.
Property tax impacts are also an important consideration. Currently, the City receives
just over $600 per year in property tax revenue from 2000 Clayton Road because the
site lies within a former redevelopment area. If the property were sold for approximately
$26 million, the City’s share of annual property tax revenue would increase to an
estimated $28,000. However, this increase would not occur until the City’s Successor
Agency dissolves, a process that wouldn’t be completed before 2027 and is dependent
on the sale of all remaining redevelopment properties, including the White Picket Fence
and Oak Street parcels. Until that time, property tax revenue will remain minimal.
Moreover, even this projected $28,000 annually would not be realized if the property is
owned by a 501(c)(3) nonprofit organization. Given these limitations, the City must
place greater emphasis on alternative revenue sources and broader economic benefits
of the proposed project, including workforce development, operational cost savings for
public agencies, and potential revenue-sharing arrangements.

Page 2 of 43

Committee Staff Report
Agenda Item No. 2.a
February 23, 2026

Lattice Industries proposes that the Concord Center for Connectivity would position
Concord as a regional leader in technology and innovation, offering shared AI and data
services, cybersecurity infrastructure, and advanced workforce training programs.
These benefits extend beyond the City to regional agencies, educational institutions,
and private partners, creating a scalable and financially sustainable model for
modernization.
Financial Impact
The capital investment for the Concord Center for Connectivity is estimated at $125
million to $250 million, phased across acquisition, facility upgrades, and Net Zero
improvements. Financing would be structured primarily through tax-exempt lease
revenue bonds, either via a Joint Powers Authority with Diablo Valley College or through
a City-only financing approach. These mechanisms would enable Concord to leverage
long-term debt financing without immediate General Fund exposure, while creating
opportunities for revenue offsets through sublease agreements with The Data Institute,
participation in shared service agreements, and marketplace operations.
Property tax considerations are also relevant. Currently, the City receives just over $600
annually in property tax revenue from 2000 Clayton Road because the property is
located within a former redevelopment area. If the site were sold for approximately $26
million, the City’s share of annual property tax revenue would increase to an estimated
$28,000; however, this increase would not occur until the City’s Successor Agency
dissolves, a process that wouldn’t be completed before 2027 and dependent on the sale
of all remaining redevelopment properties, including the White Picket Fence and Oak
Street parcels. Until dissolution, property tax revenue will remain minimal. Moreover,
even this projected $28,000 per year would not be realized if the property is owned by a
501(c)(3) nonprofit organization. Taken together, these constraints reinforce the
importance of evaluating the broader economic impacts of the proposed project,
including workforce development, operational cost savings for public agencies, and
potential revenue-sharing arrangements.
Public Contact
The Agenda was posted and DVC staff have been invited to attend and participate in
the discussion.
Attachments
1. Project Overview prepared by Lattice Industries
2. Cost Benefit Analysis prepared by Lattice Industries
3. Regional Technology Servicing Budget Analysis prepared by The Data Institute
4. Letter of Support from Nvidia
5. Letter of Support from Dell
6. Letter of Support from LTTS

Page 3 of 43

Attachment 1

Data-as-a-Commodity (DaaC®) Hub &
Member-Mutual Marketplace Developers

Opportunity Overview
Q1 2026

Page 4 of 43
©2026 Lattice Industries, Inc.

All Rights Reserved.

Lead Developer
Lattice Industries, Inc.
Data-as-a-Commodity (DaaC®) Hub & Member-Mutual Marketplace Developers
Legal Agent and Developer for The Data Institute, a 501(c)(3) research institute

Regional Resilience Hub
/ˈrē-jə-nəl ri-ˈzil-yəns həb/
noun
A community-serving cooperative facility
that delivers shared AI-ready technology,
immersive training, and secure data services
to strengthen regional coordination, next
generation workforce readiness, and longterm economic resilience.

©2026 Lattice Industries, Inc. All Rights Reserved.
©2026 Lattice Industries, Inc. All Rights Reserved.

Data By the People, For the People

Page 5 of 43
2

Project Vision:
A Next Generation, Regional
Innovation & Training Hub
The Hub’s Key Features:
• AR/VR – Virtual & Augmented Reality
Simulations
• Centralized Member AI & Data Services
• Connected, Secure R&D Labs
• Civic Intelligence Center (CIC )
• Data-as-a-Commodity (DaaC®) Marketplace
• Connected Event Space
• Innovation Exhibit Spaces
• Educational AI Tours
Page 6 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.
©2026 Lattice Industries, Inc. All Rights Reserved.

3

The Hub’s Partner-Operator
& Anchor Tenant
The Data Institute
A 501(c)(3) Research Institute

the
Data Institute

Cooperative Innovation For the Next Generation

The Hub’s Partnership Mission:
Be a public-first, self-sustaining regional
operation that delivers digital equity,
creates workforce opportunity, and
helps regions plan & deploy intelligent
innovation at scale.

Data by the People, For the People

Page 7 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.
©2026 Lattice Industries, Inc. All Rights Reserved.

4

Concord Center for Innovation
A Regional Resilience Hub
& Civic Intelligence Center
Brief Overview of The Hub

Page 8 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

Concord Center for Innovation
Next Generation Innovation & Training Hub (The Hub)
With Onsite Civic Intelligence Center (CIC )
“The Hub” Project (CA) Details:
• Concord, CA
• San Francisco Bay Area (NE)
• 400,000 sq ft of Connected Facilities
• 6-Story T4 Technology Center
• Built in Mid-1980s for Bank of America
• Fully Redundant Systems
• 14MW Electricity Access
• 7MW Generator Backup Power
• Water Available
• Purpose-Built, Hardened Facilities

Page 9 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.
©2026 Lattice Industries, Inc. All Rights Reserved.

6

The Hub
Next Generation
Resilient Innovation & Training Hub
With Onsite Civic Intelligence Center

Page 10 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

The Hub’s Features
Resilient Innovation & Training Hub
• AR/VR – Virtual & Augmented Reality Simulations
• Centralized Member AI & Data Services

• Connected, Secure R&D Labs
• Civic Intelligence Center (CIC )
• Data-as-a-Commodity (DaaC®) Marketplace
• Connected Event Space
• Innovation Exhibit Spaces
• Educational AI Tours

Page 11 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.
©2026 Lattice Industries, Inc. All Rights Reserved.

8

The Hub’s Training Facilities
Workforce Readiness
Augmented & Virtual Reality (AR/VR) Training Campus
• AI Simulator Stations
• AR/VR Immersion Training
• Certificate Programs
• Academic / STEM Programs
• Occupational Training Programs

Page 12 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.
©2026 Lattice Industries, Inc. All Rights Reserved.

9

The Hub’s Next Generation Ecosystem
Virtual & Augmented Reality (VR/AR) Programs
“Almost Hands-On” Workforce Training & Certificate Programs

Page 13 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

10

The Hub’s Next Connected Event Space
Interactive Lecture Arena & Connected Event Space
with Conference & E-Sports Competition Areas

Page 14 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

11

The Hub’s Member Services
Data-as-a-Commodity (DaaC®) Services for Members
Public Agency & Academic Discount Member Programs

DaaC® Member Mutual Marketplace
Member Institutions receive dedicated,
cooperatively priced, data transaction and
analytics services, plus exclusive access to:
• DaaC® Exchange & Clearinghouse
• Secure, AI-Ready Testing Facilities
• Connected Training Center
• Exhibit Spaces

Page 15 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.
©2026 Lattice Industries, Inc. All Rights Reserved.

12

The Hub’s DaaC® Marketplace
Dedicated, Cooperatively-Priced AI-Ready Services

Data Science & Analytical Services

Edge Computing Services
Information/Reporting Services

Co-Location Storage Services
Contract Management Services

Exchange
Member
Transaction
Clearinghouse
Clearinghouse

Page 16 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

13

The Hub’s Sustainability & Resilience
Self-Sustaining, Revenue-Generating Shared Services Operation
HUB SYSTEM Revenue: Servicing Fees

➢ $500,000 Annual Membership Fee
➢ Includes the following:
- Member Hub Access and Data Services*
- Discounted Data / AI-as-a-Service Fees
- Discounted Training & Exhibit Space Rentals

HUB DATA Revenue: Monthly Subscriptions
➢ Metadata Subscriptions
➢ Public Report Servicing
➢ Research Subscriptions

HUB FACILITY Revenue: Facilities Fees

➢ AI-connected Research Labs
➢ Secure Compartmentalized Information Facilities (SCIFs)
➢ Tier IV Data Storage (Uptime Institute® Certified)
➢ HPE Processing for AI-as-a-Service
➢ Other Hub Facilities (Exhibits, AR/VR Training, Etc.)
*Per The Data Institute’s cooperative charter, the value of membership’s includes base services worth more than the membership cost.

Page 17 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.
©2026 Lattice Industries, Inc. All Rights Reserved.

14

The Hub’s Civic Intelligence Center (CIC )
Civic Data Management & Information Reporting
Data Management at the Edge
Intelligence Agents

AI/ML layer

Edge Computing Facilities

Computation layer

API Gateways, Data Bus

Data layer

Lidar, Sensors, Cameras

AV layer

5G/6G, Wi-Fi, Bluetooth

Connectivity layer

Power Grid, Battery, Solar

Power layer
Page 18 of 43

©2026 Lattice Industries, Inc. All Rights Reserved.

15

Development Plan

THE HUB

Growth Plan
Financial Plan & Pro forma

Page 19 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

The Hub’s Development – PPP Financing Advantage
As a public private partnership (PPP), the Hub can leverage regional incentives
as well as public tax-exempt financing at advantageous rates

• Prioritize construction and capacity
• Durable operating cash flows support taxexempt financing for buildings and
equipment.
• Stable returns over a 10 - 30-year horizon.

PHASE II

Hub is structured as a long-life
public infrastructure asset:

PHASE I

Example Debt Structure
Tranche 1 (Mo. 6) – Building Acquisition & Fit-Out
Revenue Bond Issue: $30M, funding @ Month 6
Financing: 30-year, tax-exempt @ 5%
Monthly debt service ≈ $161K
Tranche 2 (Mo. 18) – Equipment Refinance
Revenue Bond Issue: $100M, funding @ Month 18
Financing: 10-year, tax-exempt @ 5%
Monthly debt service ≈ $1.06M
Total Mo. Debt Service Post Month 18 ≈ $1.2M
Page 20 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

17

The Hub’s Growth – Cumulative 5 Yr Impact
Moderated Growth Case with 10% Sponsor-Partner Share
Even under moderated assumptions, the Hub generates over $400 million in operating value
within 5 years, while returning meaningful, recurring capital to public partners.
Financial Impact Over First 5 Years
Total Revenue: ≈ $495 million
Less: Total Expenses: ≈ $89 million
Total Net Operating Income (NOI): ≈ $406 million
Total Partner / Public Share (10%): ≈ $40.6 million

✓ Covers debt service comfortably
✓ Builds operating reserves
✓ Establishes long-term financial independence
✓ Validates the public-private financing structure

Page 21 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

18

The Hub’s Pro forma – 10 Year Growth

$250
$225
$200
$175
$150
$125
$100
$75
$50
$25
$0

Revenue ($M)
Expenses ($M)
NOI ($M)

10% Partnership

1

2

3

4

5

6

7

8

9

Millions ($)

Hub Pro forma - 10 Year in Millions ($)

10

Years in Operation
(through Year 10)
©2026 Lattice Industries, Inc. All Rights Reserved.

Page 22 of 43
19

The Hub’s Development Plan
Project Tasks

Description

Partnership Execution

Formation to own Hub
Create Special Purpose Entity
(Center of Innovation)

Acquisition/Occupation

The PPP leases the Facility
Completes initial installations

Operational Upgrades

Security Enhancements
Training (AR/VR)
Lecture spaces integrated

Member Space Updates
(In Operation)

Updates to Modernize Space
Secure Compartmentalized
Information Facilities (SCIFs)
Installed

Technology Asset Refinancing
Innovation Campus
Infrastructure

PPP leverages revenue for remaining
Campus infrastructure

Date

Milestone(s)
•
•
•
•

Training & Services partnerships
PPP formation begins
Public issuer financing
Offer to buy submitted

•
•

Equipment install for base
operations (1-AI factory)
Cloud services established

06.2026 – 08.2026

•
•
•

High security upgrades
AR/VR facilities installed
Operations commence

08.2026 - 03.2027

•
•
•

Upper floors renovations
SCIFS and AI Labs
Efficiency monitors installed

•

Major equipment, windows,
fixtures replacement / windows
for efficiency carbon project

02.2026 - 05.2026

06.2026 – 08.2026

06.2027 - 12.2028

Page 23 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

20

The Hub’s Project Timeline
Core Services
Established

Public
Financing
Bond Issued
Month 6

Building Improvements &
Operational Upgrades

Month 12

Partnership Execution
Month 1

Month 8

Bond Approval

Member Space
Updates

Month 18

Acquisition /
Occupation

Smart Monitoring for System
Carbon/Efficiency

Month 24

Facility
Upgrades

Debt Refinance
Carbon Offsets

Month 36

Efficiency
Upgrades

Page 24 of 43
©2026 Lattice Industries, Inc. All Rights Reserved.

©2026 Lattice Industries, Inc. All Rights Reserved.

21

Contact Us

[email protected]
[email protected]

The Data Institute, a 501(c)(3) Research Institute

[email protected]
Page 25 of 43

22

APPENDIX

Hub Operations – Pro forma 10 Year Summary

Year

Revenue ($M)

Expenses ($M)

NOI ($M)

10% Partnership
Share ($M)

1

55.4

15.4

40.0

4.0

2

74.8

16.5

58.4

5.8

3

97.3

17.6

79.7

8.0

4

121.6

18.9

102.7

10.3

5

145.9

20.2

125.7

12.6

6

167.8

21.6

146.2

14.6

7

184.6

23.1

161.5

16.1

8

203.1

24.7

178.3

17.8

9

223.4

26.5

196.9

19.7

10

245.7

28.3

217.4

21.7
Page 26 of 43
23

©2026 Lattice Industries, Inc. All Rights Reserved.

APPENDIX

Hub Projects – Additional Information
• DI Regional Data Management Assessment
• DI Regional IT & Training Servicing Budget Analysis
• (Optional) Partner-Focused Business Case(s) Summary(ies)
•
•
•
•

1-Page Regional Hub Executive Summary
Project Team (Lattice & Data Institute) Biographies
Industry Research & Support Team - Partner Biographies
Financial Advisory Team - Partner Biographies

• Hub Initiative Letters of Support
• PPP Hub MOU

Page 27 of 43
24
©2026 Lattice Industries, Inc. All Rights Reserved.

Attachment 2
Concord City Council Committee – Briefing Document
COST BENEFIT ANALYSIS - 2000 Clayton Road
I. Executive Summary
Lattice Industries, Inc. is leading an effort to upcycle 2000 Clayton Road building.
Lattice has determined that converting the building into a regional resilience Hub is the
best opportunity for Concord community. Lattice has concluded that the City is a
necessary partner to upcycle that at-risk property.
The property is highly at risk of default, based on current market conditions. Due to its
current state as a purpose-built 400,000 sq.ft. data processing and technology center,
the lack of competitive energy resources for that size space and the age of the core
MEP systems makes original purpose of the building no longer viable at full utility.
Additionally, a very complex campus management agreement, whereas the 2000
Clayton building manages utilities for all 4 buildings on the campus makes it very
expensive and subsequently unattractive to commercial developers in its current state.
The 2000 Clayton Road property (sold in 2018 for $68M) is currently available at $25
million but requires a minimum of $10+ million in mandatory MEP modernization to
become leasable and economically competitive. The core systems of the building
(Building D) are responsible for the utilities of the entire campus (4 Buildings total); a
portion of the $10M investment is to separate those systems and their liability from the
Building D.
Without intervention:
•
•
•
•
•

The asset will remain functionally obsolete.
The buyer pool remains severely limited.
The property risks prolonged vacancy or distressed sale.
The City receives limited tax or economic activity benefits.
The City risks a negative “spill-over” effect in its downtown district.

With a structured public-private partnership to operationalize the space:
•
•
•
•
•

The site can be repositioned into a Next-Generation Innovation & Training
Hub.
Revenue bonds can finance capital improvements.
Service contracts and municipal commitments can support bond underwriting.
The City can catalyze long-term economic and infrastructure value downtown.
New jobs to operate the Hub can be created for additional taxation.

Page 28 of 43

Attachment 2
The proposed Hub (Concord Center of Innovation) represents an opportunity for the
City of Concord to facilitate the community stakeholders’ workforce and technology
needs:
•
•
•
•
•

Modernize existing IT and training services it already funds
Upgrade civic technology operations and systems for local business efficiency
Leverage tax-exempt revenue bond for long-term capital financing
Strengthen regional workforce development with industry & academic
collaboration
Generate long-term economic participation revenue from institutional Members

II. Current Financial Reality (As-Is Condition)
Asking Price: $25,000,000 or $62.50/SF (~400,000 SF)
Required Capital Improvements (MEP): $10,000,000+ (minimal improvements)
Effective Total Basis: $35,000,000 or $87.50/SF (~400,000 SF)
However:
• Required capital is defensive, not additive.
• Assets cannot support hyperscale data center conversion.
• Electrical capacity <15 MW (insufficient for Hyperscalers requiring 60–100 MW+).
• Private institutional buyers discount heavily due to risk and obsolescence.
Implied Market-Clearing Price (Private Market): Est. $12M–$15M range ($30–
$38/SF)
This indicates an implied risk:
• The current $25M pricing is not aligned with pure private market underwriting
based on primarily needed improvements.
• Without repositioning, liquidity risk remains high.
III. Why This Matters to the City
If the asset declines or remains underutilized:
• Reduced property tax growth.
• Lower employment density.
• Blight risk for surrounding commercial corridors.
• Loss of competitive positioning in regional business economy.
Conversely, repositioning provides:
• High-wage technical employment.
• Regional resilience infrastructure.
• Institutional data services revenue.
• Attraction of AI, mobility, and public infrastructure partnerships.

Page 29 of 43

Attachment 2
IV. Proposed Upcycling Strategy
Partnership to Transform the Campus Into:
Regional Resilience & Institutional Data Hub
Operated through:
• The Data Institute (501c3)
• Special Purpose Entity (SPE)
• Member-mutual or cooperative governance structure
Member Program Uses May Include:
• AI-enabled public infrastructure analytics
• AR/VR emergency preparedness training
• Edge compute services (non-hyperscale)
• Cloud services for public agencies
This repositions the asset from:
Obsolete Technology Campus → Regional Infrastructure Asset
V. Revenue Bond Structure Overview
Proposed Capital Stack
Source

Role

Revenue Bonds

Finance acquisition + MEP upgrades

Service Contracts Provide predictable revenue streams
City Incentives

Credit enhancement / feasibility support

Private Equity

Subordinate risk capital

Revenue bonds would be supported by:
• Committed public service contracts
• Anchor tenancy agreements
• Institutional subscriptions
• Potential lease-back or service guarantees
VI. Revenue Share Participation Options
The City may consider support mechanisms in whole or part to achieve up to a 10%
revenue share based on the net operating income of the Hub:
Option 1: Committed Service Contracts (Non-Cash Support)
City commits to:
• Multi-year data service contracts
• Resilience analytics services

Page 30 of 43

Attachment 2
Infrastructure monitoring services
Impact:
• Creates predictable revenue floor.
• Enhances bond creditworthiness.
• Reduces borrowing cost.
Lowest direct fiscal exposure.
•

Option 2: Tax Incentives
Examples:
• Property tax abatement (temporary)
• Infrastructure improvement credits
• Sales tax sharing for buildout materials
Impact:
• Improves early-stage cash flow.
• Reduces lease-up pressure.
• Preserves long-term tax base.
Moderate exposure, performance contingent.
Option 3: Credit Enhancement / Guarantee
City may:
• Provide partial revenue (e.g. service contracts) backstop
• Guarantee minimum occupancy revenue
• Support bond reserve requirements
Impact:
• Significantly lowers bond interest rate.
• Enables larger upfront capital pool.
• Accelerates project feasibility.
Higher exposure, but structured guarantees can be capped and time limited.
VII. Economic Rationale for Municipal Support
1. Avoids Asset Distress Cycle
Prevents prolonged vacancy and declining valuation spiral.
2. Preserves and Enhances Tax Base
Upcycled assets produce:
• Higher assessed value
• Employment density
• Ancillary commercial activity
3. Aligns With Digital Infrastructure Strategy
Positions city as:
• AI-forward municipality

Page 31 of 43

Attachment 2
Regional data governance leader
• Infrastructure innovation hub
4. Converts Private Obsolescence into Public Utility
Rather than: Vacant office campus
Creates: Revenue-generating institutional infrastructure
•

VIII. Risk Mitigation Strategy for the City
To protect municipal interests (optional):
• Phase capital deployment.
• Tie incentives to performance milestones.
• Require anchor contracts before bond issuance.
• Establish independent oversight board.
• Cap guarantee exposure.
• Require minimum private equity contribution.
This is not:
• A bailout of private real estate.
• A speculative technology bet.
• A large direct capital grant.
This is:
• Revenue based on the modernization of services the City already funds.
• Strategic use of tax-exempt bond financing.
• Creation of a long-life public infrastructure asset.
• Participation in revenue upside without full ownership risk.
IX. Comparative Scenario: No Action vs Partnership
Scenario

Outcome

No Action

Property owner of 2000 Clayton building is likely repricing to
distressed levels, slow resale, minimal economic growth

Private Sale
Only

Opportunistic investor, uncertain repositioning

Public-Private
Upcycle

Strategic infrastructure conversion, revenue bonds supported by
service demand and facilities usage, public revenue share option

The City of Concord can:
1. Anchor a Regional Resilience Hub.
2. Offer cooperative pricing for shared AI & ITS services for public, academic and
small business stakeholders.
3. Reduce long-term IT and training costs.
4. Strengthen bond underwriting without major direct capital.

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Attachment 2
5. Participate in long-term operational revenue.
6. Position Concord as a regional leader in civic AI and workforce resilience.
This is a low-disruption, high-leverage strategy.
X. Strategic Conclusion
At its current condition and pricing, the property is economically constrained in the
private market. However, through structured public-private partnership:
• The required $10M MEP modernization becomes infrastructure investment rather
than sunk cost.
• Revenue bonds convert capital burden into structured repayment.
• Service contracts create predictable cash flow (public & private).
• The City transforms a declining office asset into a long-term institutional
innovation campus drawing business to the city core.

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Attachment 3

Regional Technology Servicing Budget Analysis
City of Concord & Contra Costa County Region
December 2025
Purpose
This section evaluates the technology servicing expenditures of municipalities and
academic institutions near and in Contra Costa County, to establish a baseline
understanding of current public-sector digital investment across the region. The analysis
supports the case for a regional shared services hub, data governance modernization,
workforce training accelerator and economies of scale through a coordinated digital
infrastructure and data utility model.
Because Contra Costa County publish consolidated “technology budgets”, this analysis
combines publicly available financial context with benchmark-based estimates derived
from comparable counties and established public-sector IT spending norms.
Contra Costa County serves approximately 1.15 million residents and includes nineteen
incorporated cities. Fragmented digital service delivery currently results in duplicative
systems, elevated operating costs, and inconsistent cybersecurity and data governance.
Based on benchmark-based analysis consistent with public-sector best practices,
decentralized technology, payments, and training expenditures across Contra Costa County
and ten participating cities are estimated to total $70–$150 million annually. A coordinated
shared services approach could conservatively generate $15–$40 million per year in
recurring operational improvements without new taxes.
1. City of Concord — Technology Servicing
The City of Concord is the largest municipality in Contra Costa County, serving
approximately 130,000 residents, and functions as a principal employment, transportation,
and service center within the Contra Costa County region.
As a full-service city, Concord delivers a broad range of mission-critical, resident-facing
services—including public safety, land use permitting, infrastructure maintenance, and
financial administration—that rely on secure, continuously available digital systems. These
services represent essential operating functions of the City.
Technology Service Structure
The City operates centralized and departmental information technology functions
supporting:

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1

•
•
•
•
•
•
•

Network infrastructure and telecommunications
Cybersecurity and system integrity
Enterprise applications and databases
Permitting, licensing, and planning systems
Geographic Information Systems (GIS)
Data management, reporting, and analytics
Server, cloud, and infrastructure operations

Consistent with municipal budgeting practices, technology expenditures are embedded
across multiple departments and funds rather than consolidated into a single budget line
item. These expenditures support:
•
•
•
•
•
•

Administrative Services / Information Technology
Police and Fire systems
Community Development and permitting platforms
Public Works asset management
Finance, Treasury, and revenue systems
Human Resources and workforce platforms

Estimated Annual Technology Servicing Expenditure
Based on benchmarking of California cities with comparable population, service complexity,
and digital maturity, municipal technology servicing expenditures typically represent
approximately 2.0%–4.0% of operating expenditures.
Applying this range to Concord’s operating profile yields an estimated annual technology
servicing expenditure of:
Approximately $8 million – $15 million per year
This level of total technology and servicing spending reflects recurring, non-discretionary
operating costs necessary to maintain service continuity, regulatory compliance, and
cybersecurity.
Credit-Relevant Observation
From a credit perspective, Concord’s technology servicing expenditures represent stable,
recurring operating obligations, not discretionary programs. However, these expenditures
are jurisdiction-specific and are not structured to support:
•
•
•
•

Regional interoperability
Coordinated cybersecurity operations
Shared data governance
Unified service platforms across jurisdictions

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2

As a result, Concord currently incurs stand-alone operating costs that could be partially
reallocated under a shared services framework without reducing service levels, supporting
predictable, contract-based payments aligned with essential municipal operations.
2. Contra Costa County — Technology Servicing
Contra Costa County serves approximately 1.15 million residents and operates as a fullservice general-purpose county providing justice, public safety, health and human services,
infrastructure, and administrative functions. The County’s operations are supported by
enterprise-scale digital systems that are essential to daily service delivery.
Technology Service Structure
Contra Costa County maintains centralized enterprise information technology functions
that support:
•
•
•
•
•
•

Justice and public safety systems
Health and Human Services platforms
Financial management and ERP systems
Geographic Information Systems (GIS)
Data storage, integration, and analytics
Cybersecurity and network operations

Technology expenditures are distributed across multiple departments and funds and are not
reported as a single consolidated budget line item, reflecting standard county accounting
practices.
Estimated Annual Technology Servicing Expenditure
Benchmarking large California counties with similar population, service mix, and regulatory
responsibilities indicates that technology servicing expenditures typically range from 1.5%–
2.5% of operating expenditures attributable to general governmental and shared services.
Applying this benchmark to Contra Costa County’s operating profile results in an estimated
annual technology servicing expenditure of:
Approximately $30 million – $45 million per year
These expenditures are ongoing and essential, supporting statutory obligations, public
safety, and federally and state-mandated programs.
Credit-Relevant Observation
From a lender perspective, Contra Costa County’s technology servicing expenditure
represents highly stable, non-discretionary operating costs. However, these investments are

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3

optimized for internal county operations rather than coordinated regional service delivery.
This structure limits:
•
•
•
•

Cross-jurisdictional data sharing
Unified cybersecurity monitoring
Economies of scale in licensing and platforms
Standardized service interfaces with cities

Accordingly, a portion of the County’s existing technology servicing expenditure could be
restructured through service agreements under a regional shared services model, providing
predictable, appropriation-based payments without increasing overall operating cost levels.
3. Implications for Shared Services and Data Governance
Based on comparable regional shared-services initiatives, consolidation of technology
services can reasonably produce 15%–30% savings without reducing service quality.
Estimated Annual Regional Savings Potential
$12 million – $15 million annually
These savings represent operational efficiencies within existing technology, payments, and
training expenditures and do not rely on new revenue sources or reductions in statutory
services.
4. Additional Operational Benefits
In addition to direct cost savings, a shared services model would deliver:
•
•
•
•
•
•

County-wide cybersecurity coordination and threat monitoring
Standardized data governance and audit controls across departments and cities
Shared analytics and AI infrastructure supporting justice, health, and infrastructure
systems
Improved interoperability with municipal systems and regional partners
Enhanced system resilience and disaster recovery capabilities
Reduced duplication in software licensing, infrastructure, and vendor contracts

From a lender and bond-investor perspective, these outcomes support stable operating
performance, reduced operational risk, and the feasibility of predictable, appropriationbased service payments under a regional shared-services framework.
5. Additional Inclusion: Estimated Contra Costa County & Participating Cities
Workforce Training Spend

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4

Overview
This section estimates the annual workforce training and professional development
expenditures across Contra Costa County and participating cities, using widely accepted
public-sector budgeting heuristics and conservative scaling assumptions. The analysis is
intended to establish an order-of-magnitude baseline for evaluating shared training services
and regional workforce development opportunities.
Training Budgeting Assumptions
Two standard public-sector training budgeting approaches are applied:
1. Training as a Percentage of Payroll
• Public and institutional employers typically allocate approximately 1%–3% of payroll
to workforce training and professional development. (Source: ERC and public-sector
HR benchmarks)
2. Per-Employee Learning Spend
• National benchmarks for direct learning and development expenditures average
approximately $1,254 per employee annually (2024). (Source: HIGH5 Strengths /
national L&D benchmarks)
Regional Workforce Scaling Assumptions
To translate these benchmarks into regional dollar estimates, the following assumptions are
applied:
1. Service Population
• Contra Costa County population: ~1.15 million
• Participating cities (subset of incorporated cities): significant share of service delivery
and staffing
• Combined service footprint: county + city operations
2. Local Government Workforce Intensity
• Rule of thumb for local government employment: ~12–18 employees per 1,000
residents (Excludes school districts; includes county departments, city services,
courts, public safety, public works, and human services)
• Estimated total workforce (County + Cities): ~22,000 to 25,000 employees
3. Payroll Context
• Average state and local government wages and salaries: approximately $39–$42 per
hour, or ~$82,000–$87,000 annually at 2,080 hours. (Source: U.S. Bureau of Labor
Statistics)

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Method A: Per-Employee Training Spend
Assumptions
• Employees: 22,000–25,000
• Training
spend
per
employee:
$800–$1,500
annually
(Conservative-to-robust public-sector range; midpoint aligns with $1,254
benchmark)
Estimated Annual Training Spend
• Low: 22,000 × $800 =~ $17.6 million/year
• Mid (Planning Case): 23,500 × $1,254 =~ $29.5 million/year
• High: 25,000 × $1,500 =~ $37.5 million/year
Planning Range:
Approximately $18 million – $35 million annually
Method B: Training as a Percentage of Payroll
Estimated Payroll Base
•
•

22,000–25,000 employees × ~$82,000–$87,000 annually
Estimated total payroll: ~$1.8 billion – $2.2 billion

Training Allocation Scenarios
•
•

1% of payroll: $18 million – $22 million per year
2% of payroll: $36 million – $44 million per year

Planning Range:
Approximately $18 million – $30 million annually
Estimated Regional Workforce Training Spend — Contra Costa County & Cities
Based on both methodologies, a reasonable and conservative estimate for collective annual
workforce training expenditure across Contra Costa County and participating cities is:
Approximately $20 million – $30 million per year
This equates to:
•
•

~$0.8M – $1.5M per major jurisdiction, or
~$1,000 – $1,300 per employee annually, consistent with national benchmarks.

Credit and Policy-Relevant Observation
From a financial and operational perspective, workforce training expenditures represent
existing and recurring operating costs essential to service delivery, regulatory compliance,

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6

and workforce resilience. These expenditures are currently distributed across departments
and jurisdictions, limiting scale efficiencies and coordination.
A shared services or regional training framework would enable:
•
•
•
•
•

Cost-effective delivery of standardized training
Improved compliance and credentialing
Shared curriculum and digital platforms
Reduced duplication across agencies
Predictable, appropriation-based service payments

These characteristics support the feasibility of multi-year service agreements tied to
essential operating functions without increasing aggregate public-sector spending.
6. Strategic Conclusion
The combined technology servicing footprint of and the surrounding cities in Contra Costa
County are:
•
•
•
•

Large enough to justify a regional shared-services model
Fragmented enough to create measurable inefficiencies
Uneven enough to leave smaller counties exposed
Strategically positioned for modernization through a data utility/shared-services hub.

A regional digital infrastructure approach would allow Concord and other participating
jurisdictions in Contra Costa County and beyond to reallocate existing spending more
efficiently, improve service quality, and strengthen long-term resilience without increasing
general fund tax burdens. By adding additional Cities or Joint Power Authorities such as the
to the Hub’s ownership, efficiencies and pricing power improve. Through estimations based
on existing mid-sized communities in Concord, the range for potential ITS spend is
somewhere between $17M-$23M and the potential training spend is between $10M-$20M.
If those service contracts were centralized and cooperatively negotiated and serviced, the
debt service would be more than taken care of, and the revenue share would accelerate the
Rte. 30 infrastructure build-out. Simultaneously the workforce development in that area
would spur economic growth for the region, that will increase the tax base.

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7

Attachment 4

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Attachment 5

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Attachment 6

2035 Lincoln Highway, Suite #3002 Edison, NJ – 08817, USA
1/27/2026
City of Concord, California
Attn: City Council Committee / City Leadership
1950 Parkside Drive
Concord, CA 94519
RE: Letter of Support – Concord Center for Connectivity & Data-as-a-Commodity Marketplace
Dear Members of the Concord City Council Committee,
On behalf of L & T Technology Services, LTD, I am pleased to express our strong support for the
City of Concord’s efforts to advance the Concord Center for Connectivity and the first-of-its-kind
Regional Resilience Hub for workforce development and centralized services, in partnership with
Lattice Industries and The Data Institute.
We believe this initiative is both timely and necessary, as AI and advanced digital systems are
rapidly reshaping global competitiveness, and regions that invest now in modern data and
infrastructure foundations will be best positioned to lead. This project will support economic
development, responsible data stewardship, and expanded participation from public agencies and
academic institutions—ensuring they remain competitive in a world increasingly driven by data and
AI.
We encourage the City of Concord to move forward in supporting this initiative and we commend
the City’s leadership in taking a forward-looking approach to regional resilience, innovation, and
workforce readiness.
Sincerely,

Madhav Komaragiri
Vice President
Smart World - Americas
L&T Technology Services

https://www.ltts.com/

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