AN ACT RELATIVE TO THE DEPARTMENT OF PUBLIC HEALTH IN THE CITY OF BOSTON.
Whereas , The deferred operation of this act would tend to defeat its purpose, which is to authorize forthwith certain long-term leases for offices of the department of public health in the city of Boston, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Chapter 269 of the acts of 1998 is hereby amended by striking out section 1 and inserting in place thereof the following section:-
Section 1. The commissioner of the division of capital asset management and maintenance, in consultation with the department of public health, may, notwithstanding the first to the fifth paragraphs, inclusive, but subject to the sixth paragraph of section 40G of chapter 7 of the General Laws, and subject to the provisions of this act, negotiate and enter into a lease or leases for a term not to exceed 20 years for premises to be occupied for use as offices by the department of public health in the Dudley Square Economic Redevelopment District in the city of Boston, hereinafter referred to as the project. The lease or leases so negotiated shall provide for an option to be exercised by the commissioner to extend said lease or leases for an additional term of not more than ten years for all or any portion of such land, buildings, and improvements as may be selected by said commissioner pursuant to sections 40E to40F, inclusive, said sixth paragraph of said section 40G, and sections 40H to 40L, inclusive, of said chapter 7, and section 3 of this act. Said district, as delineated by the Boston redevelopment authority, includes all the land, buildings and improvements bounded on the northeast by Melnea Cass boulevard between Harrison and Shawmut avenues; on the southwest by St. James street between Warren and Washington streets; on the northwest by Shawmut avenue through Shawmut avenue to Shawmut avenue extension through to Washington street between Melnea Cass boulevard and St. James street. Included in said district shall be the land, buildings and improvements adjacent to, but outside of said boundaries, as well as all of the land, buildings and improvements within said boundaries.
For purposes of this act, the word "division" shall mean the division of capital asset management and maintenance, the word "commissioner" shall mean the commissioner of said division, the word "department" shall mean the department of public health, and the word "agency" shall mean the Massachusetts Development Finance Agency.
SECTION 2. Section 2 of said chapter 269 is hereby amended by striking out clause (b) and inserting in place thereof the following clause:- (b) that the total occupancy cost, including rent and all other charges, paid by the commonwealth under the lease shall not exceed $38.25 per usable square foot in the first year of the lease, and any subsequent increase in the annual cost of the lease shall be limited to the extent of the actual increase in operating costs, as defined by the lease; provided, that no such increase in the annual cost of said lease shall be attributable to capital repairs or improvements.
SECTION 3. Said section 2 of said chapter 269 is hereby further amended by striking out clause (h) and inserting in place thereof the following seven clauses:-
(h) that the lease shall provide for a total of 400 secure parking spaces in a parking garage appurtenant to the project for use by the employees of and visitors to the department; provided, however, that said garage shall be situated within 1000 feet of the project and if situated more than 300 feet from the project, the lease shall provide the department with the right to require free shuttle service from the owner;
(i) that the lease shall provide for an option for the commissioner to enter into the lease or leases with the developer or owner, as the case may be, of the property at 9 to 17 Warren street and at 2260 to 2272 Washington street in the Dudley Square Economic Redevelopment District, or if said property is acquired, financed by or otherwise the subject of any other agreements of or with the Massachusetts Development Finance Agency, to enter into a lease or leases with said agency;
(j) that the lease shall include an option for the commonwealth to purchase the leased premises and the building in which they are located from the lessor for $1;
(k) that the lease payment shall include the cost of a payment in lieu of taxes agreement with the city of Boston which shall not exceed $250,000 per year, and which shall be used by the city of Boston to fund improvements in the Dudley Square Economic Redevelopment District; provided, however, that such investment in the area shall not supplant routine or scheduled maintenance, salaries, utility, or the costs of other city services incurred by said city in said district;
(l) that the lease shall be conditioned on the commitment by the city of Boston to fund any costs of the developer or the landlord, as the case may be, that are necessary to cover the development costs, including improvements, renovations, transaction costs, and reasonable return on investment, in the event that said costs exceed $38.25 per usable square foot of space;
(m) that the lease shall be conditioned on the payment by the city of Boston of such amounts and in such form as specified in the Memorandum of Agreement dated June 24, 1999; and
(n) that the lease shall contain such other terms as shall be required by the commissioner.
SECTION 4. Said section 2 of said chapter 269 is hereby further amended by striking out the second and third sentences.
SECTION 5. Said chapter 269 is hereby further amended by inserting after section 2 the following section:-
Section 2A. At the discretion of the secretary of administration and finance, the lease or leases authorized by this act may include, in addition to the provisions established in section 2, an option pursuant to which the Massachusetts Development Finance Agency may purchase the leased premises and the building in which it is located. The purchase price thereof shall be negotiated by the agency and the lessor at the time the option is exercised, with the approval of the secretary of administration and finance. If the lease or leases contain such an option, the following terms shall be included: (1) said option may be exercised no earlier than the commencement of the lease term and no later than 24 months after the commonwealth's occupancy of the leased premises; (2) if the agency exercises said option, in no event shall the total occupancy cost paid by the commonwealth exceed the amount established by clause (b) in section 2; and (3) upon the conclusion of the lease term and any extensions thereof, the commonwealth shall have the option to purchase the leased premises and the building in which the agency is located from the agency for $1.
If said option is exercised, for the purposes of any tax exempt bonds to be issued to finance the leased premises, including the purchase thereof and any and all renovations and improvements as contemplated hereunder, said bonds shall be issued by the agency pursuant to chapter 23G of the General Laws and for said purpose, the project shall be considered an institution under said chapter 23G. If said agency exercises said option and purchases the leased premises, notwithstanding the provisions contained herein, said agency shall not have any of the obligations, duties or liabilities of lessor, owner or landlord, and all of said obligations, duties and liabilities shall remain with the person or persons, including, if applicable, the commonwealth, from whom said agency purchased the premises pursuant to the exercise of said option.
SECTION 6. Section 4 of said chapter 269 is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- Such lessor shall be responsible for, and shall indemnify the commonwealth from and against, all costs and liabilities associated with the environmental condition of the properties in which the leased premises are located; provided, that in the event such lessor, or the city of Boston, is unable to satisfy the terms of this section, the commonwealth may exercise a termination clause which shall be established in the lease.
SECTION 7. Said chapter 269 is hereby further amended by adding the following section:-
Section 5. For the term of the lease, including any extension periods, and in the event that the commonwealth or the agency exercises, pursuant to section 2A, an option to purchase the leased premises and the building in which the agency is located, neither the commonwealth nor the agency shall be deemed to be a responsible party, as defined by chapter 21E of the General Laws, for any response actions required at the leased premises or at the Modern Electroplating site, so-called.
SECTION 8. Notwithstanding any other general or special law to the contrary, the commissioner of the division of asset management and maintenance may enter into negotiations with owners of properties in the city of Boston in which, as of May 1, 1999, the commonwealth leases space for use by the department of public health to extend or otherwise modify leases to facilitate the timely occupancy of a new facility in Dudley Square, on terms and conditions as the commissioner deems to be in the interest of the commonwealth, subject to the approval of the secretary of administration and finance.
SECTION 9. The Memorandum of Agreement dated June 24, 1999 among and between the department of public health, the division of capital asset management and maintenance, the executive office of administration and finance, the Boston Redevelopment Authority, and Raymond Dudley LLC, as it may be amended from time to time, shall establish the rights and obligations of the parties thereto to the extent not determined by this act. The parties shall amend said memorandum forthwith to incorporate the provisions of this act and to add the Massachusetts Development Finance Agency as a party to said memorandum.
SECTION 10. As a condition of requiring the department of public health to occupy new premises at Dudley Square, the secretary of administration and finance shall negotiate an agreement with the department of public health to make available an amount sufficient to purchase or lease equipment and office furnishings for the occupancy of said premises in an amount not to exceed $2,700,000. Any lease or lease-purchase agreement established for this purpose shall not exceed a term of seven years and the amount payable thereunder shall not exceed said $2,700,000, not including the costs of financing said lease or lease-purchase. Fulfilling the terms of said agreement shall not require an appropriation to be made by the general court from the operating funds of the commonwealth.
SECTION 11. Sections 1 to 6, inclusive, of this act shall take effect as of August 10, 1998.