Section 10-B5503. FACILITY COVENANTS

 

5503.1Prior to entering into a lease agreement, prospective tenants of an incubator facility shall do the following:

 

(a)Execute a First Source Employment agreement pursuant to the D.C. Code §1-1163 et seq. (1981); and

 

(b)Contract with the District to maintain its principal place of business within the District for a minimum of ten (10) years following its move from the business incubator.

 

5503.2Each lease shall contain at a minimum the following provisions:

 

(a)Leasehold improvements which are to be made by the tenant and those to be made by the management of the facility;

 

(b)Tenant responsibility for the cost of office renovations and maintenance;

 

(c)Types and amounts of insurance to be carried by tenants; and

 

(d)Provisions regarding the goods and services that are to be provided by the targeted business, including the rate and form of compensation to be received for goods and services provided to the internal tenant businesses.

 

5503.3A business shall not remain a tenant at an incubator facility for more than five (5) years.

 

5503.4Periodic evaluations of tenant businesses shall be made to assess the tenant's level of development and determine whether the business should graduate or remain in the incubator facility.

 

5503.5The assessment shall be based upon the following factors;

 

(a)Actual and projected cash flows;

 

(b)Return on investments; and

 

(c)Other financial analyses for measuring the profitability of the business.

 

5503.6The assessment outlined in §5503.5 shall be in the sole discretion of OBED.

 

source

Final Rulemaking published at 34 DCR 3159, 3161 (May 15. 1987).