Foundry Consortium Sublease Clause Samples
Foundry Consortium Sublease. The CRA needs to execute a sublease with the nonprofit Foundry Consortium so that they may assume the role of independent operator and manager of the building. The sublease, which aligns with the Term Sheet previously approved by the CRA and Foundry Consortium boards, will supersede the Memorandum of Understanding (MOU) that now governs the working relationship between the CRA and Foundry Consortium. Additionally, the Foundry has four office suites, the rental income of which will support a significant portion of the site’s annual operating budget. Tenants have been identified for three of the four suites. Deep Genomics and Break Through Cancer are leasing market rate suites and have fully executed leases. Breakthrough Greater Boston won the lottery for the below market rate suite; their lease is expected to be executed in coming days. The fourth suite is under serious consideration by a prospective tenant. CRA staff expect bring a vote to the CRA Board of Directors regarding the final office suite in May 2022.
Foundry Consortium Sublease. Five-year Term with the option to extend by five (5) years. • All square footage within the Foundry Property falls under one of three categories: Community Reservation Space, Commercial Office Space, and Common Areas. • The Foundry Consortium will promote and curate community programs to serve the mission of the Foundry (the Program). In order to carry out the Program, the Foundry Consortium has full access to the Premises defined as Community Reservation Space and the Furniture, Fixtures and Equipment provided by the City and the CRA. • The Foundry Consortium is responsible for management and maintenance of entire Foundry Property. • There is no rent due to the CRA from the Foundry Consortium. • The CRA will create and hold Operating and Capital Reserve accounts in accordance with its Master Lease with the City of Cambridge. • The CRA will lease office space and use the income to support operating expenses via payment of the Management Fee to the Foundry Consortium, and support other Foundry related expenses in accordance with the Governing Documents. • The CRA will pay the Foundry Consortium an annual Management Fee, informed by the annual budget that the Foundry Consortium provides to the CRA for approval. • The CRA will provide the Foundry Consortium with $100,000 in start up funds during Spring 2022 to support personnel expenses prior to the Foundry’s public opening. • The Foundry Consortium may collect fees in exchange for providing Community Reservation Space to the public. • The CRA reserves the right to use space at no cost for public meetings and events. • Income collected from the property (whether by the CRA or Foundry Consortium) will be:
(a) used to support the Program;
(b) invested in additional improvements to the Property to support the Program;
(c) used to pay administrative costs of the Foundry Consortium and CRA in managing its responsibilities under the Governing Documents; or
(d) deposited in the Reserve Fund accounts. • The Foundry Consortium can make “minor” improvements (as defined in the sublease) without CRA approval; other improvements must first gain CRA approval, and potentially City approval. • Improvements may be paid for by the Capital Reserve, subject to CRA and, in some circumstances, City of Cambridge approval. • The CRA will pay any real estate taxes levied. CRA staff are submitting requests for tax abatements to the extent permitted by law. Taxes are expected on the commercial/office space portion of the building. • Th...