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Ethics Board Docket No. 2020-131 <br /> Page 5 of 14 <br /> authorized RI to identify and develop physical locations for the program through a lease. The <br /> Services Agreement further provided that RI shall be responsible for all costs associated with the <br /> acquisition of the physical plant, whether through purchase or lease, and that RI shall identify, <br /> obtain, and develop the physical location(s) for the operation of the program. <br /> 12. <br /> At the January 21,2020,meeting of the BCHI Board,RI recommended the selection of the <br /> Subject Property, owned by HRG, as the site for the BCHI program. Such recommendation was <br /> based on statements by RI with respect to cost savings and renovation timelines. Mr. Temple was <br /> not in attendance at such meeting;the members of the BCHI Board at the January 21,2020 meeting <br /> unanimously approved such site location. <br /> 13. <br /> Upon learning that RI had selected the Subject Property, owned by HRG, as the site for the <br /> BCHI program, Mr. Temple resigned as a member of the BCHI Board,by letter dated January 22, <br /> 2020, <br /> 14. <br /> On February 1, 2020, following Mr. Temple's resignation from the BCHI Board, HRG <br /> entered into a Lease Agreement (the "Lease AgreemenY') with RI to provide a location for RI to <br /> operate the services to be provided to BCHI. BCHI was not a party to the Lease Agreement. The <br /> Lease Agreement provided that in the event of the termination of the relationship between RI and <br /> BCHI, RI would have the right to terminate the lease upon written notice. The Lease Agreement <br /> established a term of 5 years and provided that RI would pay HRG the annual base rent of over <br /> $200,000 per year. The Lease Agreement provided RI the option to renew the lease for up to two <br /> additional five-year terms if its agreement with BCHI remained in place. <br />