RFP to Lease Building 125 in Charlestown Navy Yard at Boston National Historical Park

SUMMARY OF LEASING OPPORTUNITY This Request for Proposals (RFP) provides the opportunity for any interested individual or organization, hereinafter referred to as Offeror to submit proposals to the National Park Service (NPS, Lessor ) to lease NPS property at National Parks of Boston for a Commercial Use under the following general terms and conditions. The selected offeror ( Offeror , you , your ) will have exclusive negotiation rights to enter into a lease based on the attached Sample Lease (See Attachment A). Elements of your proposal may be incorporated into the Lease at Lessor s discretion. Overview of Property Offered for Lease Building 125 is located at 125 Baxter Road, Charlestown, Suffolk County, Massachusetts. The building contains approximately 10,188 square feet of interior space. The land assignment includes approximately 3,493 square feet of adjacent land surrounding the building, approximately 217 square feet for the HVAC enclosure located on the north side of the building, and the adjacent approximately 1,072 square foot parking lot located to the east of the building which has parking for nine (9) vehicles, one (1) of which must be designated for accessible parking. Constructed in 1905, Building 125 is a historic two-story red-brick structure which originally served as the Navy Yard paint shop. Positioned between Dry Docks 1 and 2 to facilitate hull painting operations, it was integral to the yard s mission of constructing and refitting naval vessels and was among the first buildings at the site to include an electric elevator as part of its original design. Starting in 2016, Building 125 underwent major renovations to convert the former Navy Yard paint shop into loft-style office space. The building is constructed on piles, with concrete encased steel foundation girders, brick bearing walls, and steel framed concrete floors and roofs. Large windows provide natural light to the interior. An adjacent dock and patio will be offered as an optional component to the lease. The dock is approximately 125 feet long by 18 feet at the widest point. The adjacent patio is approximately 2,470 square feet. The optional component will also include three (3) parking spaces. One (1) slip on the dock will be reserved for the park s law enforcement vessel, with 24/7 access to the gangway. The patio has been most recently used by the current tenant for special events. The building sits on Pier 3 in the historic Charlestown Navy Yard. When the Navy Yard closed in 1974 after nearly 175 years of serving the fleet, 30 acres became part of Boston National Historical Park. The yard is the permanent berthing place for two historic naval vessels, USS Constitution and USS Cassin Young. Buildings within the park house interpretive exhibits, visitor information, the USS Constitution Museum, park administration, and staff housing. The navy yard attracts over 1,000,000 visitors annually. One hundred (100) acres of the Navy Yard have been the focus of reuse in partnership with the private sector, under the purview of the Boston Planning Department. Completed and ongoing work includes rehabilitation of historic structures and construction of new facilities for office, healthcare, residential, and retail uses, with a commitment to maintain an open and accessible waterfront. Allowed Uses of the Lease Premises Building 125: Commercial/office/retail/flex use, excluding restaurants or other types of businesses that have a substantial food service component. Optional dock and patio: Commercial/industrial/private watercraft docking. Key Information About This Leasing Opportunity Deferred Maintenance: Despite recent major interior renovations, the roof of Building 125 needs to be replaced. Preference will be given to offerors that propose to oversee this project. The NPS has 100% fully scoped design and construction documents that can be made available to you upon request. A rental payment offset will be made available if a Lessee completes the work. Please contact bost_permits@nps.gov to request these documents. Building Codes and Zoning: The Lease Premises are owned by the Federal Government and are not subject to the zoning regulations or building codes of Boston, Massachusetts. However, the NPS will expect any work done on the property, where relevant, to meet the standards set forth by the 2024 ICC family of Codes and all codes referenced in those codes. For fire codes, follow all codes referenced in NPS Director s Order #58 and NPS Reference Manual #58. For accessibility, work must meet the ICC Codes and the Architectural Barriers Act Accessibility Standard (ABAAS). Additionally, Certificates of Occupancy are issued by the NPS Building Code Official. Historic Preservation: Construction design, authorization, regulatory compliance, and permitting will be required to comply with one or several of the following: the Secretary of the Interior's Standards and Guidelines; National Historic Preservation Act (NHPA) and Section 106 compliance; National Environmental Policy Act (NEPA); NFPA 914 Code for Protection of Historical Structures. Please note that your proposal may trigger compliance processes in accordance with one or more of the laws, regulations or policies listed above. The cost of any such compliance process as well as the costs of plan check, code review and construction inspections will be borne by the Lessee. Dock & Adjacent Patio: If an offeror is interested in utilizing the dock and adjacent patio space, they must include their intended uses for these elements and the additional rent they are willing to pay in their proposal. If the dock and adjacent patio will not be utilized by the selected offeror at lease commencement, they may be added to the lease at a later date for additional rent upon mutual agreement between the NPS and the Lessee or may be offered for lease at a later date through a competitive solicitation. Jurisdiction The Lease Premises are subject to concurrent jurisdiction. Under concurrent jurisdiction, Federal and State governments share the governmental authority, and unless otherwise stated, the laws of both governments are applicable. The Lessee must comply, at its sole cost and expense, with all Applicable Laws and Requirements (including Federal, State, and local laws, rules, regulations, requirements, and policies) in fulfilling its obligations under the Lease. It is the responsibility of the Lessee to determine whether it is subject to specific taxes and assessments and abide by those applicable statutes. Any comments made by the NPS in this RFP do not alter those responsibilities, if any, nor should they be construed to take a position nor express a view on behalf of the Lessee. Term of the Lease The term of the lease will be negotiated with the selected Offeror. The term shall be as short as possible, while considering the financial obligations of the lessee and other factors related to determining an appropriate lease term. No lease shall have a term of more than 60 years and the NPS anticipates a term of 10 years for this opportunity. Offered term lengths over 10 years must be justified by the cost of improvements as part of your proposal. The lease term will commence as soon as possible following the expiration of the current lease on 12/31/2026, and selection of the best offer pending completion of any required compliance work. Rent NPS is required under 36 CFR Part 18 to receive, at a minimum, Fair Market Value Rent (FMVR). The FMVR determination has considered restrictions the NPS has placed on the use of the property and terms of the lease that limit the value and/or the highest and best use of the property and any requirements under the lease for the lessee to restore, rehabilitate or otherwise improve the leased property. The amount of rent will be negotiated subsequently with the selected offeror, provided that the final rent must at least equal the FMVR as determined by the NPS. Rent Payment Offsets may be considered for expenditures on capital investments made to improve the property. These Rent Payment Offsets may substantially reduce rent payments. The minimum FMVR for this opportunity has been determined to be $24/square foot NNN ($244,512/year). Insurance During the term of this Lease, the Lessee shall maintain General Liability, Property & Casualty, Worker s Compensation & Employer s Liability, and Business Interruption & Extra Expense insurance in amounts set by the Lessor. Further information regarding insurance requirements can be found in Attachment A: Sample Lease. Lessee s insurance coverage amounts will be periodically reviewed by the Lessor. These reviews will ensure the Lessee has appropriate coverage in light of any changing circumstances. Utilities The Lessee is solely responsible for all utilities including telephone, cable, and internet access. Subject to advance written approval by the Lessor of any utility service, the Lessee at its sole expense shall make all arrangements with…