Laserfiche WebLink
South Bend <br />Redevelopment Commission <br />227 West Jefferson Boulevard, Room 1308, South Bend, Indiana <br />Redevelopment Commission Agenda Item <br />DATE: 5/14/2025 <br />FROM: Erin Michaels, Property Development Manager <br />SUBJECT: Renewal of Lease with Haunt of Hounds, LLC for <br />Fatbird <br />Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. <br />* Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the <br />authorization of the expenditure of such funds shall be void and of no effect. <br />PURPOSE OF REQUEST: Approval of proposed renewal of lease with Haunt of Hounds, LLC for the restaurant <br />Fatbird <br />SPECIFICS: C. In January of 2022, the Commission transferred the Palais Royale to the South Bend <br />Redevelopment Authority (“RDA”) to effectuate a certain lease rental revenue bond transaction that would <br />finance a portion of improvements to the Property. As part of this transaction, RDA leased back to Commission <br />through a certain Lease Agreement dated as of December 1, 2021 all of its right, title, and interests in the <br />Property and expressly provided the authority to Commission to enter into agreements with other parties for the <br />operation of the Property. <br />The Redevelopment Commission approved a lease with Haunt of Hounds, LLC for the restaurant Fatbird on July <br />1, 2020 located in the Palais Royale at 103 W Colfax Ave. Haunt of Hounds, LLC then provided notice to the <br />Commission that they wished to exercise the renewal option in the lease to extend the term to June 30, 2025. <br />The proposed lease between the RDC and Haunt of Hounds, LLC would continue this partnership with the <br />following terms: <br />-Lease Term: July 1, 2025 – June 30, 2028 <br />-Rent increase of 3% annually from base rent of $2,971.00/month <br />o July 1, 2025 – June 30, 2026 Rent: $3,060.13/month <br />o July 1, 2026 – June 30, 2027 Rent: $3,151.93/month <br />o July 1, 2027 – June 30, 2028 Rent: $3,246.50/month <br />-Common Expenses increased to $1,000/month <br />o Prior lease was $975/month <br />-First month’s rent waived due to HVAC issues that occurred in December of 2024 <br />Renewal of the Fatbird Lease will continue the activation of the Palais Royale storefront which adds a significant <br />amount of vitality to downtown South Bend while also providing appropriate rental revenue for the space. <br />_________________________Pres/V-Pres <br />ATTEST: __________________Secretary <br />Date: ____________________ <br /> APPROVED Not Approved <br />SOUTH BEND REDEVELOPMENT COMMISSION <br />May 22, 2025 <br />