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Board agrees to let lease start March 1 while issuing RFP for operator of DRI-funded facility
Summary
The board approved allowing a lease to commence March 1 for the Bonaccio space at 36 Inc. despite unfinished landlord work and directed staff to issue an RFP to find a private operator; state officials have indicated potential reimbursement from DRI funds.
The board voted to allow the lease for the commercial space at 36 Inc. to begin March 1 even though some landlord work remains unfinished, while the board and city prepare a request for proposals to find a private operator for the facility.
The move, prompted by a request from the tenant/owner Bonaccio, was presented by Speaker 1, who said the lease had required the landlord to complete certain fit-out work once the remainder of the building was occupied. Speaker 1 said the city and the LDC want flexibility to solicit private partners and not require a full fit-up before leasing the space. “They said, Yes. But we need can we go ahead and then begin the rent, the lease, for the space as of March 1,” Speaker 1 said.
The board’s action is procedural: it relieves the tenant of the immediate obligation to finish landlord work and allows rent to commence, while staff will publish an RFP to solicit operators. Speaker 3 said the state is aware of the change and that staff have had multiple conversations with state economic development officials; Speaker 3 reported ESD staff view the plan favorably and indicated the state may reimburse a significant portion of DRI-related costs. “I think our end goal is to have them reimburse us for almost everything and pull back a small amount until we can find some partnership,” Speaker 3 said.
Board members stressed they want a private partner to propose how it would use the space rather than have the city predetermine its use. Speaker 2 said the intent is to “white box” the interior to make it easier to attract operators and avoid overdeveloping the space for a single use.
The board also discussed establishing a review committee to evaluate RFP responses; Speaker 2 confirmed such committees must meet publicly and follow open-meeting rules. Speaker 1 said staff will share the RFP draft with members when it is ready and asked for volunteers to serve on the review committee.
Next steps: staff will finalize the RFP, convene a review committee composed of board members, and return to the board with proposals and any recommended agreements. The board’s amendment allowing rent to commence March 1 was recorded as approved during the meeting.
