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South Bend Redevelopment Commission <br />Regular Meeting –August 6, 2010 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />A. South Bend Central Development Area <br /> <br />(4) continued… <br /> <br />Ms. Jennings noted that the proposed base <br />rent is $1,200 per month for the first year, <br />$1,300 per month for year two, and $1,400 <br />for year three, beginning with two months <br />free rent. The rent includes Common Area <br />Maintenance (CAM). <br /> <br />Ms. Jones asked what CAM runs. Mr. Inks <br />responded that this rent assumes CAM of <br />$4/sft. <br /> <br />Mr. Varner asked the size of the space. Mr. <br />Inks responded 1,530 sft. <br /> <br />Mr. Downes asked how the rent compares to <br />what Quiznos was paying. Mr. Inks <br />responded that the rent for Brunos starts at <br />$5.41/sft and increases to$6.98 in year three. <br />Quiznos was at $9-10/sft. <br /> <br />Mr. Inks noted that CB Richard Ellis <br />researched the local market. The retail <br />market is not very good right now. We could <br />be asking the Commission to make the <br />improvements to the space, which would far <br />exceed the rental income over the three <br />years. Some properties are getting up to a <br />year free rent. We feel this rent compares <br />favorably to what the current market is <br />getting. We feel fortunate to get the space <br />filled with such a quality tenant. <br /> <br /> <br />C <br />Upon a motion by Mr. Downes, seconded by <br />OMMISSION AUTHORIZED STAFF TO PREPARE A <br />B’P <br />LEASE WITH RUNOS IZZA AT THE TERMS <br />Mr. Varner and unanimously carried, the <br />131S.MS <br />STATED FOR ICHIGAN T <br />Commission authorized staff to prepare a <br />lease with Bruno’s Pizza at the terms stated <br />for 131 S. Michigan St. <br /> 8 <br /> <br />