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(604, South Bend Redevelopment Commission <br />Regular Meeting — December 16, 2005 <br />6. NEW BUSINESS (CONT.) <br />B. South Bend Central Development Area <br />(2) Commission approval requested for Letter <br />of Intent for property located at 123 S. <br />Michigan St. in the South Bend Central <br />Development Area. (CORT Furniture) <br />Mr. Williams noted that CB Richard Ellis has <br />submitted a letter of intent on behalf of <br />CORT Furniture for 123 S. Michigan St. <br />where it is the current tenant. The Letter of <br />Intent proposes a lease rate of $9.85 per sft <br />($1,255.88 /month) in 2006, increasing $0.25 <br />annually for four years. The average rate <br />over the five years of the term is $10.50 /sft, <br />which is the current market rate. CORT has <br />been a model tenant during its current lease. <br />►'` Ms. Greene noted staff is trying to <br />standardize its leases, making them tenant- <br />friendly while still protecting the City and <br />Commission. Unlike the Quizno's lease, the <br />CORT lease will expire December 31, 2005 <br />without an option to renew. Staff requests <br />approval of a term and base rate to be <br />incorporated into a standard form of lease <br />which will be presented to the Commission <br />for approval at its next meeting. <br />Upon a motion by Mr. Downes, seconded by <br />Mr. Hojnacki and unanimously carried, the <br />Commission approved the terms of lease <br />with CORT Furniture and authorized staff to <br />prepare a new lease with those terms to be <br />approved at the January 3, 2006 meeting. <br />L <br />COMMISSION APPROVED THE TERMS OF LEASE <br />WITH CORT FURNITURE AND AUTHORIZED <br />STAFF TO PREPARE A NEW LEASE WITH THOSE <br />TERMS TO BE APPROVED AT THE JANUARY 3, <br />2006 MEETING <br />