Fire Proof Safe....
I once worked for a printing company who decided that the mainframe backups should be kept in a fire proof safe at the other end of the large site.
A second hand fire proof safe was purchased and installed in the warehouse on a wooden pallet (so it could be easily moved if required) surrounded by millions of copies of the coming years calendars and other paper and cardboard items.
I could never work out if the IT Manager simply didn't take backup storage seriously or he wasn't right in the head. As far I recall there was never any test restores either so option two might be correct in his case.