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40 C 0) 4- C0 <br />5pU7p8 <br />O� ,Phi�li;l�i O <br />2 Department of <br />9 Community <br />r <br />uu <br />Memorandum <br />Thursday, March 21, 2013 <br />TO: Redevelopment Commission <br />FROM: Don Inks <br />Investment <br />SUBJECT: Bosch Lease Termination and Environmental Indemnity Agreements <br />In August of 2000, Robert Bosch Corporation (Bosch) entered into a 20 year lease for property <br />located at 401 N. Bendix. Under the terms of that lease, in the event Bosch terminated the lease <br />before the 20 term was completed, Bosch would be subject to certain Repayment Amounts and <br />Lease Termination Penalties. In addition, Bosch upon leaving the site was also required to enter into <br />an Environmental Indemnity Agreement with the City. Bosch exited the site and terminated the lease <br />on 12/31/12. <br />Lease Termination Aareement <br />In accordance with the lease, Bosch is agreeing to the following: <br />1. A lease termination penalty of $1,327,083.33. <br />2. A repayment amount of $746,071.71, which will allow the City to repay funds borrowed from <br />local and State sources to complete the original project. <br />3. Payment over time of an Indiana Development Finance Authority loan with a current balance <br />of $538,508.13. This loan will be repaid in accordance with the original repayment <br />schedule. <br />Environmental Indemnity Agreement <br />1. Bosch is agreeingto indemnify the City for any environmental issues arisingfrom its <br />occupancy of the site between 4/1/96 and 12/31/12. <br />2. The City is agreeing to indemnify Bosch for any environmental issues arising after 12/31/12 <br />not due to Bosch's occupancy. <br />227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 -235 -9311 I hAA: 5r4- zen -WZI I aUUI"Duvu,n.wv <br />