Committee backs restructuring of BioBat incubator and lease amendment

Jamie Horton, senior vice president for special projects and business operations, presented a staff proposal to amend the BioBat sublease and reconstitute BioBat Inc. to stabilize the life‑sciences incubator at the Brooklyn Army Terminal.

Horton said the 2006 joint venture between NYC EDC and SUNY Research Foundation had struggled with leasing growth; after a 2019 amendment and subsequent pandemic‑era losses, EDC issued a default notice in 2024 and withdrew a previously announced $50,000,000 capital award. "We are presenting a restructuring of BioBat, which entails an amendment of the existing sublease between NYC EDC and BioBat and the reconstitution of the nonprofit corporation BioBat Inc," Horton said.

Hazel Balaban, vice president in asset management and manager of the Brooklyn Army Terminal, outlined the core business terms: BioBat would surrender the dock level, first and third floors—reducing its premises from 206,400 square feet to approximately 44,000 square feet—and convert to a standard landlord–tenant lease with a 10‑year term and two 5‑year renewal options. Balaban said there would be no further leasing milestones, EDC will hold a security deposit at lease execution, and base rent will not be conditioned on BioBat having excess revenue.

Balaban also described a capital and timing package intended to give the nonprofit runway: EDC will contribute up to $5,000,000 toward tenant improvements and provide more than 12 months of rent abatement that begins after reconfiguration work is complete; staff estimated construction would finish by next summer and the abatement period would give BioBat roughly an 18‑month runway so base rent would begin by June 2027. "EDC is providing more than 12 months rent abatement period to allow for BioBat to ramp up leasing activities," Balaban said.

Committee members questioned the scope and repurposability of the capital work, whether tenants currently occupy the space and what corporate assets remain. Staff said one subtenant remains in the fully built‑out area and that corporate assets are primarily cash on hand and equipment; staff confirmed the lease amendment and surrender agreement return some floors to EDC while leaving a consolidated, leasable second‑floor footprint for BioBat.

Chair moved approval of staff’s recommendation to amend the sublease, enter into the surrender and reconstitution agreements, and execute related documents; a voice vote was taken, members answered "aye" and the motion passed. The committee will forward its recommendation to the board for final action.