Franklin Building: Master Lease Approved for renting commercial space

Watertown Local Development Corp. will lease the available commercial space at the Franklin Building and find tenants for the space for 30 years.

The corporation's board of directors approved a master lease with Public Square Developers LP. Neighbors of Watertown will be the general partner.

"We're responsible for recruiting, getting people in there and working out leases, but Neighbors is responsible for managing the property," WLDC Chief Executive Officer Donald W. Rutherford said.

The agreement commits WLDC, also known as Watertown Trust, to pay $61,074 to Public Square Developers each year. That covers rent, taxes, some utilities and maintenance for the 12,000 square feet of commercial space on the first floor. About 3,000 square feet is common area, including a historic sidewalk that runs through the building and cannot be rented.

Justin Sorensen / Watertown Daily Times

Con Tech Building Systems workers replace flooring Monday in the old YWCA gymnasium in the Franklin Building, Public Square.

The renovation also will provide 16 residential units on upper floors, served by an elevator. Those rentals will be controlled by Neighbors.

The $7.8 million Franklin Building project is expected to be completed around the end of this year.

Watertown Trust attorney W. James Heary said the Trust could pursue taking utilities off the list of services provided by Neighbors. Changes in the service or cancellation of the agreement requires approval of both entities and the state's Housing Trust Fund Corp., which is funneling grants and tax credits to pay for the project.

"If we say it's revenue-neutral, it will pro-bably be OK," Mr. Heary said.

Board member and City Manager Mary M. Corriveau said, "If they are going to be separately metered, they shouldn't be in the rent payment."

The Trust now needs to work out a separate agreement with Neighbors for the group to manage the commercial space.

A committee of Watertown Trust board members will finalize rental rates for the commercial space. To break even on the $61,000 payments to Neighbors, the Trust will have to charge $6.80 per square foot.

"Of the space available, some is obviously much more desirable than others," Mrs. Corriveau said.

There are five available storefront spaces and interior office space.

Renting the commercial space "is our only obligation, which is a substantial one to the success of the Franklin Building," Mr. Heary said.