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u\V\ %a Department of
Community
IB65
Memorandum
Wednesday, January 23, 2013
Investment
A- (-,v-)
TO: Redevelopment Commission
FROM: Don Inks
SUBJECT: Termination of Parking Lot (Part of 217 S. Main St) Lease with Holladay Property
Services, Inc.
The attached map shows the location of the parking lot This property was acquired by
Redevelopment in May 2000. Holladay had been leasing it for parking from the previous owner and
entered into what was believed to be a temporary agreement (we were in the middle of negotiating a
development for the site) on 12/3/01 to continue leasing from Redevelopment for $385 per month,
on a month to month basis, the same price paid to the previous owner. Holladay continued to make
payments through February 2004, then stopped.
As we have pursued this over the years, Holladay has claimed they were told they did not have to
pay. Until recently we have not had enough information to confirm or deny Holladay's claim. This
week we received information which has allowed us to confirm that Holladay was told (in early 2003)
the lease would be modified so they would no longer be required to pay.
In January or February 2003 John Phair met with Jon Hunt (then Executive Director, Department of
Community & Economic Development) and Karl King (Redevelopment Commissioner). The meeting
was precipitated by our pending development of the site for an office building. As part of our
preparation for this development we were in the process of vacating alleys running throughout this
block, except for the southern half of the alley running north and south. The alley vacations limited
access to the parking and the development itself would have eliminated the parking. At the meeting,
Jon Hunt and Karl King agreed to seek a modification of the lease to allow Holladay to use the
parking lot without payment to Redevelopment, but Holladay would remain responsible for
maintenance.
Jon Hunt passed away in February 2003, before he could direct staff to prepare the lease
modification for Redevelopment consideration. We have confirmed with Karl King that Holladay's
claim of this meeting is true and the outcome of the meeting was to seek modification of the lease to
cease requirements for payment by Holladay.
Accordingly, this request of the Redevelopment Commission is to terminate the lease for this parking
lot. A copy of the original lease, dated 12/3/01, is attached for your reference.
227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574- 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV