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Home My WebLink AboutLease Renewal - LePeep of South Bend1316 COUNTY -CITY BUILDING 227 W.JEeFERSON BOULEVARD SOUTH BEND_ INDIANA 46601-1830 CITY OF SOUTH BEND PETE BLITTIGIEG, MAYOR BOARD OF PUBLIC WORKS December 22, 2016 Margaret Dalta LePeep of South Bend, Inc. 127 S Michigan South Bend, IN 46601 RE: Lease Renewal — Dear Ms. Dalta: PRONE 574/235--9251 FAX 574/235-9171 The Board of Public Works, at its meeting held on December 22, 2016, approved the renewal of the Lease for 127 South Michigan Street in the amount of $207,708.48 for six (6) years. Enclosed please find a copy of the agreement for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, IC.0 ')1111LA�- Linda M. Martin, Clerk Enclosure c: Aaron Kobb, Community Investment GARY A. GILOT SUZANNA M. FRITZBERG ELIZABETH A. MARADIK JAMEs A. MUELLER THERESE J. DORAU BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 12/20/16 Name Aaron Kobb Department Community Investment BPW Date 12/22/16 Phone Extension 5823 Attorney Name Ben Dougherty Controller review is required for all Contracts $5,000.00 or more Controller ❑ and greater than one year in length per the City Purchasing Policy Purchasing ❑ Professional Services Bid Opening Quote Opening Chg Order No. Ease./Encroach. Other: Lease Renew: Contract ❑ Bid Award ❑ Quote Award ❑ C/O & PCA No. ❑ Traffic Control Company or Vendor Name LePeep ❑ Yes New Vendor ❑ No MBE/WBE Contractor ❑ MBE ❑ WBE Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description Amount of of South Bend, Inc Proposal ❑ Req. to Advertise ❑ PCA ❑ Resolution I-1 Claim If Yes, Approved by Purchasing ❑ Title Sheet Completed E-Verify Form Attached ❑ Yes ❑ No $207,708.48 (six year lease term total) Lease renewal between landlord and tenant for the space located in the Michigan Street Shops 127 South Michigan St Increase Decrease Previous Amount Current Percent of Change: New Amount Total Percent of Change: Time Extension: Dispersal After Approval Copy Original ❑ ® Aaron Kobb (2 Originals) ❑ ❑ ❑ ❑ FIFTH AMENDMENT TO LEASE This Fifth Amendment To Lease (this "Fifth Amendment") is entered into as of December 22, 2016 (the "Effective Date"), by and between the City of South Bend Board of Public Works, as successor -in -interest to the South Bend Redevelopment Commission pursuant to that certain Assignment And Assumption Of Garage -Related Agreements dated September 27, 2016 (the "Landlord") and Le Peep of South Bend, Inc. (the "Tenant"). RECITALS A. Landlord and Tenant are parties to that certain Lease dated October 20, 2000, and recorded on October 25, 2000, as Document No. 0049944 in the Office of the Recorder of St. Joseph County, Indiana, as amended by the First Amendment to Lease dated February 13, 2003, the Second Amendment to Lease dated November 2, 2007, the Third Amendment to Lease dated November 1, 2008, and the Fourth Amendment to Lease dated May 10, 2011 (collectively the "Lease") related to the Premises located at 127 South Michigan Sheet, South Bend, Indiana. B. Pursuant to Section 3.1 of the Lease, as amended, the term of the Lease will expire at 12:00 midnight, Eastern Standard Time, on October 31, 2017. C. Landlord and Tenant desire to extend the term of the Lease and to modify certain other terms of the Lease as set forth in this Fifth Amendment. NOW, THEREFORE, in consideration of the mutual promises and obligations set forth in the Lease and in this Fifth Amendment, the Landlord and Tenant agree as follows: follows: A new section, denominated Section 1.3, is inserted into the Lease and reads as SECTION 1.3. RIGHT OF FIRST REFUSAL. Landlord hereby grants Tenant the right of first refusal to lease the suite immediately adjacent to and south of Suite 129 in the Building, which consists of approximately 1,056 square feet (the "ROFR Space"). If and when the ROFR Space becomes available for lease, Landlord will notify Tenant in writing that the ROFR Space is available, and Tenant will have fifteen (15) days from the date Landlord gives notice in which to exercise its right to lease the ROFR Space. In the event Tenant exercises its right to lease the ROFR Space, Landlord will lease the ROFR Space to Tenant upon terms agreeable to Landlord as determined in Landlord's sole discretion. 2. Section 3.1 of the Lease is deleted in its entirety and replaced by the following provision: SECTION 3.1. THE TERM. The "Commencement Date" of this Lease is May 1, 2001. The term of this Lease (the "Term") will continue from the Commencement Date until December 31, 2021, unless earlier terminated in accordance with the provisions of this Lease. 3. Effective January 1, 2017, the table set forth in Section 4.2 of the Lease is deleted in its entirety and replaced by the following table: PSF Annual Monthly 1/1/17—12/31/18 $10.49 $33,600.00 $2,800.00 1/1/19 — 12/31/20 $10.80 $34,608.00 $2,884.00 1/1/21 — 12/31/21 $11.13 $35,646.24 $2,970.52 4. The last two paragraphs of Section 4.2 of the Lease are deleted in their entirety. Accordingly, commencing on January 1, 2017, Tenant will have no obligation to pay Percentage Rent, as previously defined in Section 4.2 of the Lease. In addition, Landlord hereby waives and will not seek to collect Percentage Rent, as previously defined in Section 4.2 of the Lease, due to Landlord on account of Tenant's gross revenues generated in 2015 or 2016. 5. Except as expressly modified by this Fifth Amendment, all terms and conditions of the Lease remain in full force and effect. Except for the waivers specifically stated in Section 4 of this Fifth Amendment, Landlord's execution of this Fifth Amendment does not constitute and will not be construed to constitute a waiver or release of any unpaid obligations of Tenant as of the Effective Date of this Fifth Amendment, which will remain due and owing in accordance with the terms of the Lease. 6. Capitalized terms will have the meanings set forth in the Lease unless otherwise defined in this Fifth Amendment. This Fifth Amendment may be executed in counterparts, all of which shall be deemed originals. 8. The undersigned persons executing and delivering this Fifth Amendment on behalf of the parties represent and certify that they are duly authorized to execute and deliver this Fifth Amendment for his or her respective party and that all necessary corporate action has been taken and done. 9. The parties agree to record this Fifth Amendment in the Office of the Recorder of St. Joseph County, Indiana, following its execution by both parties. Tenant will bear all recordation costs. [Signature page follows.] IN WITNESS WHEREOF, the parties have executed this Fifth Amendment To Lease to be effective as of the Effective Date stated above. CITY OF SOUTH BEND BOARD OF PUBLIC WORKS AdA- Garyry Gilot, President Therese Doran, Mefnber Suzanna Fritzberg, Member Elizabeth Maradik, Member Jame/Mueller, Member ATTEST: (%�4Aa ('-� i sda Martin, Clerk LE PEEP OF SOUTH BEND, INC. �Si* i itu'e Printed Name Ynd Title Date STATE OF INDIANA ) ) SS: ST. JOSEPH COUNTY ) Before me, the undersigned, a Notary Public, in and for said County and State, personally appeared of the South Bend Board of Public Works and acknowledged the execution of the foregoing Fifth Amendment To Lease. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal on the day of My Commission Expires: STATE OF INDIANA ) ) SS: ST.JOSEPH COUNTY ) 2016. Notary Public Residing in St. Joseph County, IN Before me, the undersigned, a Not - Public, in and for said County and State, personally appeared Y�Qi'lt�e CCa�`P� of Le Peep of of South Bend, Inc. and acknowledged the execution of the foregoing Fifth Amendment To Lease. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed 0 official seal on the Z)a day of �QkJ�iyY�e�� , 2016. SI L, 6-m V Notary Public Residing in St. Joseph County, IN My Commission Expires: ,Z ZC-)2� Yrtrr1nuruin ,\0 V.M•GRq 4000.000003839765968.003 :` og'�p,•�io C ;% ;:ESN SPgY PUBLI'•, NOIARY SEP� _ •: 4