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South Bend Redevelopment Commission <br /> Regular Meeting—April 12, 2011 <br /> reason, KKC has requested extensions of <br /> both leases. For the Stephenson Mill lease, <br /> KKC proposes to extend the term of the lease <br /> for 35 years. For the Central High lease, <br /> which has the $299,000 purchase option at <br /> the end, KKC proposes to make a balloon <br /> payment of$100,000 when it secures its <br /> financing which would be against the <br /> purchase option now, with level amortization <br /> payments over the life of the lease extension. <br /> Subsequently, KKC came to the city and <br /> requested a term be placed in the agreements <br /> and the extensions to provide for <br /> assignability of these leases, subject only to <br /> the new tenant to be able to assume the loan <br /> obligations that KKC is working on. <br /> The current leases provide that the <br /> Commission will not reasonably withhold its <br /> consent to a request for assignment. The <br /> requested additional assignability language <br /> makes it easier for them to assign the leases, <br /> but reduces the Commission's control over <br /> the use of those properties. If we get a <br /> proposed use that's not conducive to what we <br /> believe the general development of that area <br /> should be, then we can withhold consent to <br /> the assignability of that particular lease. If <br /> they can assume the loan obligation then the <br /> assignment is automatic. At this juncture <br /> we're requesting that the Commission <br /> approve the lease extensions without the <br /> assignability clause. <br /> Ms. King asked if the assignability clause <br /> was required. Mr. Meteiver responded that it <br /> is not a deal-breaker. <br /> Ms. King asked if there were restrictions as <br /> Central High Apartments is required to have <br /> a certain percentage of low income tenants. <br /> 8 <br />