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South Bend Redevelopment Commission <br /> Regular Meeting—July 26, 2011 <br /> 6. NEW BUSINESS (CONT.) <br /> C. South Bend Central Development Area <br /> (3) Lease with Girbaud Hines and Sonja <br /> Young dba Vesuvio's Pizza for the Wayne <br /> Street Garage retail space. <br /> Ms. Jennings noted that at its July 12 meeting <br /> the Commission approved the terms of a <br /> lease for Vesuvio's Pizza for the Wayne <br /> Street Garage retail space. The lease has a <br /> three-year term beginning August 25, 2011, <br /> for the Redevelopment Retail property <br /> located at 117 E. Wayne Street. The rental <br /> terms are: Year 1-Monthly Rent $1,500, <br /> (Annually, $18,000); Year 2-Monthly Rent <br /> $1,750 (Annually, $21,000); Year 3-Monthly <br /> Rent $2,000 (Annually, $24,000). After year <br /> three Vesuvio's has the option to renew the <br /> agreement for one year. Tenant will be <br /> responsible for payment of all utilities <br /> including property taxes. Staff recommends <br /> approval. <br /> Mr. Varner questioned if places like <br /> Vesuvios would be interested in a longer <br /> term lease. Instead of a one-year agreement, <br /> why not a five-year or ten-year agreement for <br /> stability reasons? Ms. Jennings responded <br /> that that's been done in the past, but the city <br /> has not held tenants to that duration, and isn't <br /> likely to now that we have the early lease <br /> termination. <br /> Ms. King asked if it's the lessee that doesn't <br /> want the longer term lease or is it just our <br /> procedure or policy? Mr. Inks responded <br /> that it is not the Commission that is opposed <br /> to the longer term lease. The lessee is <br /> nervous about signing a long term lease. <br /> 9 <br />