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South Bend Redevelopment Commission <br />Regular Meeting -November 21, 2008 <br />6. NEW BUSINESS (CONT.) <br />B. South Bend Central Development Area <br />(1) continued... <br />location are down slightly (about 2%). <br />While cash flow has improved it is still not <br />positive. LePeep has shared its income <br />statements with us, on a confidential basis, so <br />that we could confirm their operating <br />performance. <br />We believe LePeep has been and continues to <br />be a valuable retail establishment in the <br />downtown, and that it can be a viable <br />business going forward. However, given <br />their current operating situation, they are <br />requesting an additional amendment to their <br />Lease in order to lower rent for the next year. <br />The proposal is to go from the first year lease <br />rate of $4.68 to $7.49 per square foot ($2,000 <br />per month). Years three through 5 would <br />remain at the current specified lease rate of <br />$9.37 per square foot. We have discussed <br />this proposal with CB Richard Ellis our <br />property manager and they have <br />recommended we approve this proposal, <br />especially in light of the current economy <br />and leasing environment. <br />Staff recommends approving the proposal <br />effective November 1, 2008 (the beginning <br />of the second lease year). This will retain a <br />long term tenant, a valuable downtown <br />business and enhance its viability to remain <br />so. <br />Mr. Varner asked if staff had asked for an <br />extension of the lease along with the reduced <br />rent. It makes a long term tenant a longer <br />7 <br />