2. A Minutes 12-19-08 - Laserfiche WebLink

Home Browse Search

South Bend Redevelopment Commission Regular Meeting — December 19. 2008 6. NEW BUSINESS (CONT.) B. South Bend Central DeNclopment Area (4) continued... lease payments being $38.532. statt'didn't feel that covered the Commission's costs to the extent necessary. The retail monies all go into a separate fund where they are restricted for use on the retail properties as well as maintenance of the plaza for Leighton Center. Our expenses for maintaining the plaza are close to $50,000 per year. By excepting this proposal, we would be going from a slightly better than break even position to a master lease paying $38,000, leaving us $12,000 short for plaza maintenance. In addition, we would still be at risk for capital expenses in the retail spaces. As much as the Commission would like to be out of the retail management business, we can't recommend accepting that offer. CB Richard Ellis is agreeable to continue to negotiate the Master Lease. If we can negotiate a suitable Master Lease, the Management Agreement that that will be terminated and the Master Lease will be brought to the Commission for approval. If not, the Management Agreement will remain operative. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal fi-orn CB Richard Ellis for Management of Redevelopment Retail Properties, with a thirty -day opportunity to terminate if an agreement can be negotiated on the Master Lease of Redevelopment Retail Properties. 12 CON I M ISS ION ACCEP I ED THE PROPOSAL FROM CB RICHARD GLLIS FORMAN AGEMFNT OF REDEVELOPMENT RETAIL PROPER] IES. WITH A THIRTY -DAY OPPORTUNITI' TOTERMINATE IF AN AGREEMENI- CAN BE NEGOTIATED ON THE MASTER LEASE OF REDEVELOPMENT RETAIL PROPERTIES