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South Bend Redevelopment Commission <br />Regular Meeting –September 18, 2009 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />C. Airport Economic Development Area <br /> <br />(1) continued… <br /> <br /> <br />CRN.2601 <br />Upon a motion by Ms. King, seconded by <br />OMMISSION APPROVED ESOLUTION O <br />APPROVING THE TRANSFER OF REAL PROPERTY <br />Mr. Varner and unanimously carried, the <br />CSB,I. <br />TO THE ITY OF OUTH END NDIANA <br />Commission approved Resolution No. 2601 <br />(UP&V) <br />NDERGROUND IPE ALVE <br />approving the transfer of real property to the <br />City of South Bend, Indiana. (Underground <br />Pipe & Valve) <br /> <br /> <br />(2) Lease Termination Agreement (SASCO) <br /> <br />Mr. Inks noted that this agreement will be <br />between the Redevelopment Commission <br />and Teachers Credit Union. It pertains to <br />410 W. Sample St, the former Studebaker <br />Engineering Bldg #92 at the southwest <br />corner of Franklin and Sample which was <br />originally leased to Studebaker Autoparts <br />Sales Corp. (SASCO) on 1/7/00. TCU <br />previously notified the Redevelopment <br />Commission of its intent to sell the assets of <br />SASCO on 9/15/09. TCU has also taken <br />over the lease for this property via the <br />Collateral Assignment of Lease. The Lease <br />has a term of 10 years (ending 1/7/10), but <br />has two five year renewal options. In order <br />to vacate the property for demolition in <br />preparation for Ignition Park it is necessary <br />to buy out the remaining term of the Lease. <br /> <br />The economic value of the Lease can be <br />determined by calculating the discounted <br />value of a market lease rate for ten years, less <br />the actual lease rate discounted for 10 years. <br />A market lease rate for cold storage could <br />range from $1 to $3 per square foot, <br />according to CB Richard Ellis. The staff is <br /> 13 <br /> <br />