ICANN Resolutions » Brussels Office Lease Renewal

Important note: The Board Resolutions are as reported in the Board Meeting Transcripts, Minutes & Resolutions portion of ICANN's website. Only the words contained in the Resolutions themselves represent the official acts of the Board. The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.

Brussels Office Lease Renewal

Resolution of the ICANN Board
Meeting Date: 
周日, 4 二月 2018
Resolution Number: 
2018.02.04.05 – 2018.02.04.06
Resolution Text: 

Whereas, ICANN has maintained a Regional Office in Brussels, for more than a decade.

Whereas, the lease for the current Brussels Regional Office expires in 2021.

Whereas, ICANN organization has evaluated the options to negotiate a reduced rate for the existing lease subject to committing to three more years, or to move to another suitable location.

Whereas, ICANN org has recommended that the Board authorize the President and CEO, or his designee(s), to take all actions necessary to execute the updated lease for the current office facility in Brussels, as reflected in the Reference Materials, and make all necessary disbursements pursuant to that lease.

Whereas, during its meeting on 24 January 2018, the Board Finance Committee (BFC) reviewed the financial implications of the options evaluated for the ICANN Regional Office in Brussels.

Whereas, the BFC has determined that the proposal for updating the lease of for the existing Brussels Regional Office is reasonable and properly reflected in the draft FY19 Operating Plan and Budget.

Resolved (2018.02.04.05), the Board authorizes the President and CEO, or his designee(s), the take all necessary actions to execute the updated lease for the current office facility in Brussels, as reflected in the Reference Materials, and make all necessary disbursements pursuant to that lease.

Resolved (2018.02.04.06), specific items within this resolution shall remain confidential for negotiation purposes pursuant to Article 3, Sections 3.5(b) and 3.5(d) of the ICANN Bylaws until the President and CEO determines that the confidential information may be released.

Rationale for Resolution: 

To support its globalization strategy, ICANN established an office in Brussels early on in its history to better service its stakeholders. To further show ICANN's commitment to its globalization strategy, and meet the demand for increased focus on serving European stakeholders through the Brussels Regional Office, ICANN organization undertook to evaluate the cost-effectiveness of the current lease for the Brussels office. ICANN org conducted a market review and an analysis of updating the current lease versus relocating to several other locations, and finds updating the lease for the current facilities to be a more viable and cost-effective solution.

In November 2017, ICANN org invoked an option for early termination of the Brussels Regional Office lease, which lead to a discussion with the landlord about the current lease terms. The landlord eventually offered to reduce lease payments from annual payments of [REDACTED FOR NEGOTIATION PURPOSES] to annual payments of [REDACTED FOR NEGOTIATION PURPOSES], subject to entry into an updated lease with early termination option in six years (2024) and a final termination date of 2027.

In total, once property tax and other charges are included, the annual commitment (incentives included) would amount to [REDACTED FOR NEGOTIATION PURPOSES] compared to the current arrangement at [REDACTED FOR NEGOTIATION PURPOSES], or an overall saving of just over 12 percent.

In addition, the landlord has pledged a contribution of [REDACTED FOR NEGOTIATION PURPOSES] for the potential costs of renovating the office, which would enable ICANN org to consider functional improvements to the office, such as creating a larger meeting room space, better suited to being used to host ICANN workshops, or policy working groups, for example.

The Board reviewed ICANN org's and the Board Finance Committee's recommendations for renewing the current lease for an additional three years at a reduced rate as offered by the landlord and the determination that the proposal met the financial and business requirements of the organization.

Taking this decision is both consistent with ICANN's Mission and in the public interest as having a Regional Office in the Brussels region helps serve ICANN's stakeholders in a more efficient and effective manner.

There will be a financial impact on ICANN to renew the current lease for an additional three years. This impact is currently included in the FY19 Draft Operating Plan and Budget that is pending Board approval.

This decision will have no direct impact on the security or the stability of the domain name system.

This is an Organizational Administrative function that does not require public comment.