6C (1) - Laserfiche WebLink

Home Browse Search

DEPARTMENT OF REDEVELOPMENT South Bend, Indiana Policy for Early Termination of a Lease INTRODUCTION The purpose of this policy is to set forth the conditions under which the South Bend Redevelopment Commission will consider an early termination of a lease in either the Michigan Street Shops or the Wayne Street Retail Space. The conditions required to release a tenant from the original lease ensure that the tenant has paid all rent and other financial obligations and is not relocating to another storefront within the South Bend Central Development Area. Voluntary "move outs" in Commission owned retail spaces have occurred primarily due to tenants acknowledging their businesses cannot be sustained. In lieu of incurring further debt and falling behind on rent, tenants are encouraged to work with the Commission to vacate the space under amicable terms before the lease term expires. This Policy allows the Commission to avoid the necessity of collection efforts, and the costs associated therewith, and allows the Commission to re -lease the space being vacated by the tenant. This Policy further recognizes the Commission's willingness to be flexible and work with tenants that have made a good faith effort, kept current on their rent and have given the Commission notice of their need to vacate before the lease term expired. POLICY Under the following conditions, the South Bend Redevelopment Commission will consider an Early Termination of Lease upon the Tenant's request. The Tenant has occupied the space for at least one year. 2. The Tenant is current on all payments due to the South Bend Redevelopment Commission, including, but not limited to, Rent and Common Area Maintenance (CAM). 3. Rent paid shall be at least sufficient to cover any cost of tenant improvements and leasing commissions paid by the South Bend Redevelopment Commission. 4. The condition of the space at move out must conform to the requirements of the lease. 5. The tenant and all guarantors of the tenant agree not to relocate to another space within the South Bend Central Development Area for a period of not less than one year from the date of the Early Termination of Lease agreement.