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South Bend Redevelopment CODI omission <br />Regular .meeting ..- October 19, 2007 <br />6. NEW BUSINESS (CONY.) <br />B. South Bend Central Development Area <br />(8) continued... <br />right now. LePeep has been able to sae its <br />lease payments over the last six years, except <br />for two nion.ths. .hut they have not been .in a <br />Position to cover some CANT reconciliation <br />charges and maintenance charges. The total <br />on those, including the two months back rent, <br />is 1, ' he lease renewal itself will <br />reduce the rest for the space from 1. 0.50 per <br />sft to $9.37 per sft or about $3 00 per month <br />decrease. The CAM would increase on a <br />monthly basis by about $200. The net <br />decrease in rent and CAM is about per <br />month. <br />Mr. Inks noted that part of the proposal for <br />the renewal is to waive the CAM <br />reconciliation, maintenance and two months <br />of rent totaling 2 1,000 and. that the first year <br />of the new lease the rent would be at half the <br />new rate. The final thing is a % additional <br />rent on revenue exceeding $600,000. While <br />we're providing some incentive to keep <br />LePeep as a tenant, should the business <br />become very successful over the term of the <br />lease, the Commission would stand to benefit <br />from that success. LePeep will use these <br />concessions over the next year to refocus on <br />their business wi. th the intent to increase and <br />improve their operations and profitability. <br />Where are other reasons, besides their <br />refocusing. There are some coming <br />improvements in the downtown that will <br />probably be adding additional clientele or <br />customers for their business. R.E..'s new <br />hotel could be complimentary in supporting a <br />PTO <br />