HomeMy WebLinkAbout6C(2) Letter of IntentG~ ~- C z~
To: Redevelopment Commission
From: Staff - Debrah Jennings, Property Manager
Subject: Letter of Intent for UAN Cultural & Creative, Ltd
Date: December 3, 2010
Please find attached a Letter of Intent for an art gallery known as, UAN Cultural & Creative, Ltd.
The gallery is interested in leasing 123 S. Michigan Street for one year beginning January 15, 2011,
with 60 days rent abatement.
The annual Modified Gross Rent is $ 19,000. per year which also includes Common Area
Maintenance, Real Estate Taxes and Insurance. Tenant is responsible for payment of all utilities.
Tenant shall have the option of two (2) one (1) year lease renewals provided they are in good
standing. Modified Gross Rent for lease renewals is subject to negotiation.
For your information and comparison, please find attached the rent and CAM of current
Redevelopment Retail tenants.
Staff is recommending approval of the Letter of Intent for this retailer.
Thank you.
H? W PDATA correct memo.doc
CBRE
CB RICHARD ELLIS
November 29, 2010
South Bend Redevelopment Commission
1200 County-City Building
227 W. Jefferson Blvd
South Bend, IN 46601
RE: Letter of Intent to Lease space at 123 S. Michigan Street
Dear Debrah and Don:
101 N. Michigan Street
Suite 300
South Bend, IN 46601
574-237-6000
574-237-6001 Fax
www.cbre.com/southbend
Below, please find an outline reflecting the terms the UAN Cultural & Creative Art
Gallery is prepared to proceed with Lease negotiations at the above referenced location.
TENANT: UAN Cultural & Creative, Ltd
BUSINESS USE: An international art gallery and sales of related
products used to promote cultural exchange and
awareness.
PROPERTY: former Cort Furniture
123 S. Michigan Street
South Bend, IN 46601
PREMISES: 1,530 Square Feet located between LePeep and
Spark Design Studio in the Michigan Street Shops
at the address specified above.
TERM: One (1) year and two (2) months, commencing 60
days after Lease execution and Tenant's possession,
which is estimated to be January 15, 2011.
RENT ABATEMENT: Tenant shall have 60 days of abated rent after lease
execution and Landlord Delivery to complete set-
up, Tenant Improvements, re-modeling, etc.
RENEWAL OPTION: Provided Tenant is not in default of any of the terms
of the Lease, Tenant shall have the two (2), one (1)
year options to renew the lease on the same terms as
provided in the Lease except that the Modified
Gross Rent shall be subject to negotiation.
MODIFIED GROSS RENT:
The annual Modified Gross Rent shall be $19,000
per year ($1,583/month) $12.42 per square foot per
year, inclusive of Common Area Maintenance
(CAM), Real Estate Taxes and Insurance.
INSURANCE: Tenant will carry insurance for liability and on
personal property and its improvements to the
Premises in amounts and types further defined in
the lease document.
UTILITIES: Tenant shall bare all utility costs for its Premises,
which shall be separately metered and billed
directly to Tenant.
DELIVERY OF SPACE: Landlord shall deliver the space "as-is".
LEASE GUARANTEE: The financial terms of the lease shall be personally
guaranteed by the Tenant.
MAINTENANCE
RESPONSIBILITIES: Tenant shall be responsible for all Interior
Maintenance which shall be further defined in the
Lease.
DEPOSIT: First month's Rent as well as a security deposit
equal to the first month's Rent shall be due upon
lease signing.
SIGNAGE: Tenant shall be allowed to place its sign on the
facade of the building at Tenant's sole cost and
expense. Said sign shall comply with all municipal
code regulations and Landlord's signs specifications
and written approval of Landlord shall be obtained
prior to any sign installation.
Note that this letter is not a binding legal agreement, nor shall it be construed as a legal
offer to lease. Neither Landlord nor Tenant shall have any obligation resulting from the
terms and conditions contained herein, nor shall any obligation or liability be incurred by
either party until and unless a lease is signed and fully executed by both parties.
Respectfully,
CB Richard Ellis
Autumn Psaros
Senior Associate ~ Retail Brokerage Services
Landlord: Date:
Tenant: Date: