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HomeMy WebLinkAbout6A(4)To: Redevelopment Commission From: Staff — Debrah Jennings, Property Manager Subject: LePeep of South Bend Date: May 10, 2011 LePeep, a retail in Downtown South Bend is buying out their business partner and seeking a loan and Security Agreement from 1st Source Bank. Because, the South Bend Redevelopment Commission is the owner and Lease Holder of the property located at 127 S. Michigan Street, 1st Source Bank requires Redevelopment Commission's consent and signature on the Assignment of Lease by Lessee and Disclaimer and Waiver of Interest in Real Estate. Also, attached is LePeep's 0h Amendment of their lease. The existing lease is not officially expiring until October 31, 2012. However, as part of the partner buy -out a five (5) year lease must be executed. LePeep's 4th Lease Amendment Lease term begins June 1, 2011 with an annual base rent of $24,000.00 and ends October 31, 2017 with annual base rent of $3,000.00. Staff recommends approval HAWPDATA \correct memo.doc FOURTH AMENDMENT TO LEASE BETWEEN The SOUTH BEND REDEVELOPMENT COMMISSION AND LE PEEP OF SOUTH BEND, INC. DATED MAY 10, 2011 THIS FOUTH AMENDMENT TO LEASE is made and entered into this 10`h day of May, 2011 by and between the South Bend Redevelopment Commission ( "Landlord ") and Le Peep of South Bend, Inc. ( "Tenant "). WHEREAS, Landlord and Tenant are parties to an agreement entitled "Lease" dated and made effective October 20, 2000, as amended by the First Amendment to the Lease between the Landlord and Tenant dated February 13, 2003, and by the Second Amendment dated November 7, 2007, and the Third Amendment dated November 1, 2008 (collectively "the Lease ") related to the Premises located at 127 South Michigan Street, South Bend, Indiana as more particularly described in Exhibit A; and WHEREAS, the term of the Lease expires at 12:00 midnight, Eastern Standard Time on October 31, 2012; and WHEREAS, Landlord and Tenant desire to extend the term of the Lease and to modify the terms of the Lease as hereinafter set forth. NOW, THEREFORE, in consideration of the mutual promises and obligations set forth herein, the parties make this Fourth Amendment to the Lease as follows: I The following provision is added to and modifies "SECTION 3.1. THE TERM" by inserting at the end of the first paragraph, the following: The Parties agree that the Term of this Lease shall be and hereby is extended for a period of Sixty (60) months to commence on November 1, 2012 and expire at 12:00 Midnight, Eastern Standard Time, on October 31, 2017. 2. The following provision is added to and modifies "SECTION 4.2. RENTAL" by inserting at the end of the first paragraph, the following: Notwithstanding the foregoing, effective June 1, 2011, Tenant's Base Rental shall be as follows: Date Y... Jun 1, 2011 - •. range Oct 31, 2012 $ PSF 7.49 Annually .. _ $24,000.00 Monthly $ 2,000.00 Nov 1, 2012 - Oct 31, 2013 $ 8.24 $26,400.00 $ 2,200.00 Nov 1, 2013 - Oct 31, 2014 $ 8.99 $28,800.00 $ 2,400.00 Nov 1, 2014 - Oct 31, 2016 $ 9.74 $31,200.00 $ 2,600.00 Nov 1, 2015 - Oct 31, 2016 $ 10.49 $33,600.00 $ 2,600.00 Nov 1, 2016 - Oct 31, 2017 $ 11.24 1 $36,000.00 1 $ 3,000.00 In addition to the foregoing, effective November 1, 2007, Tenant hereby agrees to pay to Landlord an amount equal to six percent (6.00 %) of Gross Sales in excess of Six Hundred Thousand and 00 /100 Dollars ($600,000) [hereinafter "Percentage Rent "] during each Lease Year, as further defined herein. Tenant will be liable to Landlord for Percentage Rent in addition to the Base Rental and Minimum Rental, without previous demand. On or before the fifteenth (15th) day of each month during the Term, Tenant will furnish Landlord a statement signed by Tenant showing the amount of gross sales for the preceding month. For the purpose of calculating Percentage Rent, annual gross sales shall be taken from January 1 to December 31, with Percentage Rent calculated there from and due on or before forty-five (45) days after the end of the Lease year. In the event the Lease is terminated prior to the end of the Lease year, the foregoing Percentage Rent due shall be prorated by dividing the annual gross revenue threshold based upon a three hundred sixty (360) day year. 3. "SECTION 6.2. MAINTENANCE OF MECHANICAL EQUIPMENT AND PLUMBING" is deleted in its entirety and replaced with the following: Within a reasonable period after receipt of written notice from Tenant, Landlord, at Landlord's cost and expense, will make necessary repairs to electrical and plumbing systems, and utility supply lines (i.e. gas, electric, water) to the Building which do not exclusively serve the Premises. Tenant is prohibited from performing any maintenance services to any of the aforesaid systems itself or from hiring any contractors or persons to repair the same. If, in Landlord's reasonable discretion, such repairs are due to the actions or negligence of Tenant, its subtenants, concessionaires, employees, agents, invitees, licensees, visitors or contractors, Landlord shall promptly send to Tenant an invoice for the expense of such repair, which shall be paid by Tenant within thirty (30) days after mailing or delivery of such notice to Tenant. Landlord shall also maintain the heating and air conditioning systems which serve Tenant's Premises which costs shall be paid by Tenant as part of its Common Expenses. Tenant will, at Tenant's sole cost, maintain, repair, replace and keep in good condition and operating order the plumbing and electrical systems and fixtures, and all equipment located inside the Premises or exclusively serving the Premises. All repairs made by Tenant will be made by contractors or installers previously OA approved by Landlord and in accordance with governmental codes. Maintenance, repair and replacement of mechanical equipment and plumbing exclusive to the Premises will be Tenant's sole responsibility throughout the entire Term of this Lease. 4. The Parties acknowledge and agree that except as modified herein, all terms and conditions of the Lease remain in full force and effect. This Amendment may be executed in counterparts, all of which shall be deemed originals. The undersigned persons executing and delivering this Amendment on behalf of the Tenant represent and certify that they are the duly elected officers of Tenant and have been fully empowered, to execute and deliver this Amendment and that all necessary corporate action has been taken and done. IN WITNESS WHEREOF, the parties have caused this Fourth Amendment to Lease to be executed for and on their behalf on the day and year first written above. LANDLORD: SOUTH BEND REDEVELOPMENT COMMISSION Signature Printed Name and Title TENANT: LE PEEP OF SOUTH BEND, INC. Signature Printed ame and Title Date Date 4 ATTEST: STATE OF INDIANA ) ) SS: ST. JOSEPH COUNTY ) Before me, the undersigned, a Notary Public, in and for said County and State, personally appeared , known to me to be the , of the South Bend Redevelopment Commission and acknowledged the execution of the foregoing Fourth Amendment to Lease. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal on the day of ,20 Notary Public Residing in St. Joseph County, IN My Commission Expires: ATTEST: STATE OF INDIANA ) ) SS: ST. JOSEPH COUNTY ) . Before me, the undersigned, a Notary Public, in and for said County and State, personally appeared of Le Peep of South Bend, Inc. and acknowledged the execution of the foregoing Fourth Amendment to Lease. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal on the day of .20 . My Commission Expires: 5 Notary Public Residing in , IN EXHIBIT A The Premises consists of Retail Area Nos. 3 and 4, commonly referred to as 127 S. Michigan Street, South Bend, Indiana, which comprises of 3,203 square feet located on the ground level of the Leighton Center Parking Garage, commonly referred to as the Michigan Street Shops, South Bend, Indiana, which shops are more particularly described as follows: A parcel of land located in the Original Plat of the Town of South Bend, Leighton Plaza Replat, and a part of the Northwest Quarter of Section 12, Township 37 North, Range 2 East, Portage Township, City of South Bend, St. Joseph County, and described as follows: Beginning at the intersection of the North right of way line of Jefferson Blvd and the West right of way line of Michigan Street; thence North along said West right of way line of Michigan Street a distance of 220 feet, more or less; thence West parallel with said North line of Jefferson Blvd, a distance of 53 feet, more or less; thence South parallel with said West line of Michigan Street to the North line of said Jefferson Blvd; thence East along said North line of Jefferson Blvd to the place of beginning. Containing 0.268 acres, more or less, subject to all legal easements and rights of way. Said description is the land occupied by the existing store fronts in the Leighton Plaza Building fronting on Michigan Street in downtown South Bend.