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South Bend Redevelopment Commission. <br />Regular Meeting —April 26, 2011 <br />Ms. Jennings reported that due to the <br />depressed economy, Bombay Boutique, a <br />long -time downtown South Bend retailer is <br />experiencing a slump in business. As a result, <br />Bombay Boutique fell behind in its monthly <br />rental payments and has requested a rent <br />concession for one year, which is the <br />duration of its lease term. Bombay <br />acknowledges $4,839.84 in delinquent rent <br />owed to date. They would like to make <br />monthly payments of $403.32 for the next <br />twelve (12) months on the delinquency. <br />Bombay has also requested a reduction in its <br />base rent and Common Area Maintenance <br />(CAM) to a total of $10,000 per year <br />($833.33 per month). Currently its base rent <br />is $1,159 per month, and CAM is $495.69 <br />per month, for a total monthly rent of <br />$1,654.69. <br />With the new Lease Amendment, Bombay <br />Boutique agrees to pay $1,236.65 per month <br />($833.33 rent and CAM) and $403.32 <br />delinquent rent commencing on May 1, 2011, <br />and ending on April 30, 2012. Additionally, <br />Bombay agrees to pay 10% in extra rent on <br />gross sales over $100,000 annually. Bombay <br />will be required to forward cash sales <br />accounting monthly. <br />As an incentive for Bombay to pay as agreed, <br />$1,427.08 in late fees will not to be included <br />in the delinquent rent; however, if they do <br />not follow the terms of the amended <br />agreement, the late fees will be restored to <br />the account and the terms will revert from the <br />amendment to original lease terms. <br />Staff recommends approval of the proposed <br />Lease Amendment. <br />Oj <br />