12-19-08 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting –December 19, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… lease payments being $38,532, staff 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. C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM CBREM ICHARD LLIS FOR ANAGEMENT OF Mr. Varner and unanimously carried, the RRP, EDEVELOPMENT ETAIL ROPERTIES WITH A Commission accepted the proposal from CB - THIRTYDAY OPPORTUNITY TO TERMINATE IF AN Richard Ellis for Management of AGREEMENT CAN BE NEGOTIATED ON THE Redevelopment Retail Properties, with a MLRR ASTER EASE OF EDEVELOPMENT ETAIL P thirty-day opportunity to terminate if an ROPERTIES agreement can be negotiated on the Master Lease of Redevelopment Retail Properties. 12