City Property Committee selects LaFrance affiliate for lease of 26 Union Street; committee authorizes execution

The New Bedford City Property Committee voted to select National Downtown Club LLC, an affiliate of LaFrance Hospitality, as the successful proposer for a lease of the city-owned property at 26 Union Street (the former National Club) and recommended that the city authorize the mayor and city solicitor to execute the lease.

The committee accepted the proposal and separately recommended approval of a lease structured as a five-year initial term with three five-year renewal options. Committee discussion and the proponent’s counsel made clear that the options would be exercised at signing if needed for financing, producing an effective 20-year term. Councilors approved selection of the proposal by roll call (11–0) and later recommended approval of the lease and authorization to execute it (10–1).

Why it matters: The duration of the lease is central to the project’s financing. Proponents said lenders require a 20‑year term to underwrite the work planned for the building; some committee members expressed concern about the city being committed effectively for two decades without a mechanism to reclaim the property other than typical default remedies.

What the committee heard and decided - Clerk Lawrence read the file history: the mayor’s communication about soliciting proposals was referred to the committee on 06/08/2023; the RFP draft and related follow-ups were recorded on 06/12/2023, 07/25/2023 and 07/31/2023; the committee voted to amend lease-term language and the property was declared not needed for municipal purposes on 10/12/2023; the matter was tabled on 02/12/2025 and removed from the table at this meeting. - Purchasing Director Molly Gilfeather Rodriguez told the committee the RFP process had been completed and presented the LaFrance proposal. The proposal specifies a five-year initial lease with three five‑year renewal options. - Committee members pressed for clarity on whether the city would be able to “claw back” the property if it chose not to continue after a renewal period. Councilor Morad asked, “What’s the clawback if in year 10 we don’t wanna renew?” Solicitor Jakes and purchasing staff said there is no special city clawback provision in the draft lease; the city’s remedies would be those tied to a tenant default on rent or other lease terms. - Attorney John Markey, representing LaFrance and National Downtown Club LLC, said the party providing capital for exterior and leasehold improvements requires a 20‑year coterminous arrangement with the lease. Markey told the committee that the project includes two separate loans — one to the tenant for interior work and another to the investor for exterior/leasehold improvements — and that the lender for the exterior work has insisted on a 20‑year term. - Markey and committee members acknowledged there was not a bank letter presented at the meeting verifying the lender’s requirement; Markey said he relied on counsel and his clients’ representations during negotiation.

Formal actions and outcomes - Motion to select the proposal submitted by National Downtown Club, LLC (an affiliate of LaFrance Hospitality) as the successful proposal for the RFP for 26 Union Street: moved by Councilor Ian Abreu, seconded by Councilor Leo Choquette. Roll-call vote recorded in the meeting as 11 yes, 0 no. Outcome: approved. - Motion that the City Property Committee recommend approval of the lease pursuant to the selected proposal and that the city council authorize the mayor and city solicitor to execute the lease: moved by Councilor Ian Abreu, seconded by Councilor Bergau. Roll-call vote recorded in the meeting as 10 yes, 1 no. Outcome: approved; the motion authorizes the mayor and city solicitor to execute the lease as proposed.

Clarifying details from the meeting - Lease term: five‑year initial term with three five‑year renewal options (total possible term = 20 years). Committee was told the renewal options may be exercised at signing to satisfy financier requirements. - Clawback: committee was told there is no separate clawback clause; the city’s recourse would be typical default remedies if the tenant breaches the lease. - Financing: counsel for the proponent said lenders for the exterior/leasehold improvements require a 20‑year coterminous arrangement; a bank letter was not presented at the hearing. - Property: 26 Union Street, formerly known as the National Club; the matter originated in a mayoral communication and an RFP process starting in 2023.

What’s next: By committee vote the city council was recommended to approve the lease and authorized the mayor and solicitor to execute it. Committee members asked staff and legal counsel for the record of negotiations and for any supporting lender documentation; those items were discussed but not submitted at the meeting.