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Parcel 39a, Charlestown navy yard lease commencement agreement summary online

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PARCEL 39A. CHARLESTOWN NAVY YARD LEASE COMMENCEMENT AGREEMENT
SUMMARY

Within 30 days of Tentative Designation, the designated developer and the Boston
Redevelopment Authority (BRA) will enter into a Lease Commencement Agreement
containing the conditions of Final Designation. The Lease Commencement
Agreement will be based on the terms and conditions specified below, which will
become effective upon Final Designation.



PROPERTY:

LESSOR:

LESSEE:

TERM:

RENEWAL:

FINAL
DESIGNATION:



LEASE

COMMENCEMENT

DATE:

RENT:



Parcel 39A at the Charlestown Navy Yard, as designated by
Lessor

Boston Redevelopment Authority

Dover Properties Limited Partnership

65 years

None

Not more than 180 days from the execution of the Lease
Commencement Agreement, subject to extension by mutual
agreement of Lessor and Lessee.

Simultaneous with Final Designation.



A. Option Payment: $.15 per land square foot per year, to
increase by $.15/GSF per year at each 3 month interval, will
commence one month from date of Tentative Designation
and will continue until the start of construction. In
addition, the developer will make a payment equal to $.15 per
LSF per year for the period from March 1 , 1 987 to July 1 ,
1988.

B. Base Rent During Construction: 50 percent of the
operational period Base Rent, or $.50 per GSF per annum
payable monthly in advance, will commence at the start of
construction and will continue until the Lease Commencement
date.

C. Base Rent: $1 .00 per GSF of the improvements to the
property per annum payable monthly in advance, will
commence on the Lease Commencement date.

D. Percentage Rent: 15 percent of annual net cash flow
payable monthly in advance based on a budget prepared
annually and submitted to Lessor not less than 60 days prior
to the beginning of each fiscal year. Annual net cash flow
shall be calculated by subtracting the following items from
effective gross income: certified operating expenses, real



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MAINTENANCE
FEE:



SECURITY
FEE:



HOUSING

ASSISTANCE

CONTRIBUTION:

DESIGN
GUIDELINES
AND REVIEW:



SUBORDINATION:



FINANCING:



estate taxes, Base Rent, and an annual amount equal to 12.5%
of certified total project costs. Within 90 days of the end
of each fiscal year Lessee shall submit a calculation of
Percentage Rent for that year certified by a CPA acceptable
to Lessor and shall make a payment or receive a credit of
Percentage Rent based on the certified statement. Until the
annual Percentage Rent amount is certified, and payments
and credits are allocated, the monthly Percentage Rent
payment in any fiscal years shall be no less than one-twelfth
of the fiscal year.

$.05 per GSF of the improvements to the Property per annum
will commence simultaneously with execution of Lease
Commencement Agreement and thereafter is subject to an
escalation formula for the remainder of the Lease. All
redevelopers within the Historic Monument Area of the
Charlestown Navy Yard will be required to contribute this
amount to maintain the public areas therein.

$.05 per GSF of the improvements to the Property per annum
will commence simultaneously with the execution of Lease
Commencement Agreement and thereafter is subject to an
escalation formula for the reminder of this Lease. All
redevelopers within the Historic Monument Area of the
Charlestown Navy Yard will be required to contribute this
amount for building security in the Navy Yard.

The Developer agrees to contribute the sum of three hundred
sixty thousand ($360,000) dollars to a Housing Assistance
Fund to benefit the Charlestown Community.

A. Lessee must adhere to the Design Guidelines issued
September 1986 as part of the request for proposals
(attached).

B. Lessee must adhere to BRA Design Review Procedures
(attached).

C. Lessee must adhere to the BRA Harbor Park Plan.

D. Lessee acknowledges Design Review Procedures will
encompass BRA approval of both exterior and interior
buildings design.

Lessor's fee interest in the Property will not be
subordinated. Lessor's Base Rent will not be subordinated.
Percentage Rent will not be subordinated. In the event of a
foreclosure, the Lessor may defer Percentage Rent for a
period of time sufficient to allow lender to cure.

Any initial permanent financing may not exceed certified
total project costs.



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Digitized by the Internet Archive

in 2010 with funding from

Boston Public Library



http://www.archive.org/details/parcel39acharles00bost



REFINANCING:

SALE:

ALIENATION:



ESTOPPEL
CERTIFICATE:



CONSTRUCTION
OF IMPROVEMENTS:



BOOKS AND
RECORDS



AFFIRMATIVE
ACTION:



REAL ESTATE
TAXES:

LIABILITY:



Lessor will receive as Additional Rent 15% of net refinancing
proceeds upon refinancing.

Lessor will receive as Additional Rent 15% of net sales
proceeds upon sale.

Lessee may not dispose of its interest in the project for five
years after issuance of a final certificate of occupancy.
Thereafter, Lessee may not dispose of its interest in the
project without the written consent of Lessor, such consent
not to be unreasonably withheld.

Lessor agrees to provide any lender that notifies the Lessor
of its mortgage interest with an Estoppel Certificate granting
such lender notice of default and right to cure as may
reasonably be required.

Lessee must make improvements on the Property in
accordance with plans and specifications approved by Lessor
as part of Lessee's Final Designation within 18 months of
such Designation.

Lessee must provide Lessor with a statement of project costs
computed in accordance with the Land Lease, certified by a
CPA, and approved by the Lessor, within 1 20 days of
issuance of a final certificate of occupancy. Lessor will use
industry standards as a guide to Lessor's approval.

In addition to the reports required for the Percentage Rent
calculation, Lessee must provide Lessor with a statement of
operation certified by a CPA, and approved by the Lessor,
within 90 days of the close of each fiscal year. Lessor will
use industry standards as a guide to Lessor's approval.

Lessee must comply with Mayor's Executive Order concerning
Affirmative Action goals for construction employment,
permanent employment and minority business contracting.
The Lessor will assist the Lessee in meeting these goals.

The Property will be fully taxable by the Assessor of the
City of Boston at applicable rates.

Lessor and the City of Boston will not incur any expenses in
the development of the Property. The Property will be
leased in an "as is" condition. Lessee will pay for the cost
of any utility relocation not paid by any utility company.



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Online LibraryBoston Redevelopment AuthorityParcel 39a, Charlestown navy yard lease commencement agreement summary → online text (page 1 of 1)