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Home My WebLink AboutAmendment to Lease Agreement - Extends Lease of TRC for 3 Yrs. – Catalyst Two, LLC ELIZABETH A. MARADIK JOSEPH R. MOLNAR GARY A. GILOT ALEXANDRA DOLZ-LANE MURRAY L. MILLER 1316 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/ 235-9251 FAX 574/ 235-9171 CITY OF SOUTH BEND JAMES MUELLER, MAYOR BOARD OF PUBLIC WORKS August 22, 2023 Mr. John Jessen Catalyst Two, LLC jjessen@bradleyco.com RE: Amendment to Lease Agreement Dear Mr. Jessen: At its August 22, 2023 meeting, the Board of Public Works approved the above referenced amendment that extends the lease of the Technology Resource Center in Ignition Park for three (3) years from July 1, 2023 to June 30, 2026. Enclosed please find a copy of the amendment for your records. If you have any further questions, please call this office at (574) 235-9251. Sincerely, /s/ Theresa Heffner Theresa Heffner, Clerk Enclosures TH/lh Amendment to Lease for City of South Bend, Indiana Page 1 of 2 AMENDMENT TO LEASE AGREEMENT This is an Amendment to the Lease Agreement (“Amendment”) made and entered into by and between Catalyst Two, LLC, an Indiana Limited Liability Company (“Landlord”) and the City of South Bend, Indiana, by and through its Board of Public Works, for the benefit of its Department of Innovation and Technology, an Indiana municipal corporation (“Tenant”), originally entered into on January 1, 2019 (which lease and all existing amendments, if any, are the “Lease”). Upon execution by Landlord and Tenant, this Amendment shall become effective as of July 1, 2023. NOW, THEREFORE, in consideration of the responsibilities and mutual covenants in the Lease and in this Amendment, it is mutually covenanted and agreed by and between Landlord and Tenant the Lease is amended by adding and/or modifying the following terms: A. Term Extension. The Term of the Lease is hereby extended through June 30, 2026 (the “Renewal Term”). B. Annual Base Rent Schedule. For the Renewal Term, Tenant agrees to pay Landlord in accordance with the following modified rent schedule: Year Base Rent PSF Year Rent Monthly Rent 1 $14.01 $225,000.00 $18,750.00 2 $15.57 $250,000.00 $20,833.33 3 $17.12 $275,000.00 $22,916.67 Contemporaneously with the execution of this Amendment, Tenant will pay Landlord the Base Rent for Year 1 of the Renewal Term. Thereafter, and continuing through the remainder of the Renewal Term, Tenant will pay Landlord Base Rent annually on or before June 1. C. Basic Lease Provisions and Definitions. Common Area: The Common Area shall be defined as all shared interior space (e.g., lobbies, hallways, atriums, etc.), parking areas, isles, driveways, roadways, entrances, exits, sidewalks, service areas, landscaped areas, and other common facilities located from time-to-time within the boundaries of the real estate defined hereunder as the Building and designated by Landlord for common use and benefit of the tenants of the Building and their invitees. The composition of the Common Area, as well as any improvements therein, may be modified from time-to-time at the sole discretion of Landlord. Landlord shall specifically have the right to a) substantially change the size, location, and/or arrangement of the parking areas, b) substantially change the number of parking spaces or other parts of the Common Area, c) change any entrances or driveways which provide a means of ingress or egress from adjoining streets to the Building, and d) grant to any third party any right to use any portion of the real estate for either ingress to or egress from any property not presently constituting part of the Building. D. Event Activity. For the Renewal Term, Landlord grants to Tenant, its agents, contractors, and employees, a non- exclusive right on, in, and across the Leased Premises and Common Areas for the purpose of hosting events on the Premises or partnering with local organizations to host events and invite members of the local community (the “Activity”). This non-exclusive right to enter upon and use the Leased Premises and Common Areas for said Activity shall be at all reasonable times. In consideration for the authorization and approval by Landlord for Tenant and its designated agent(s) to enter upon and use the Leased Premises and Common Areas in conducting the Activity, the Tenant agrees to obtain any permits or other permissions required by any local government agency, and to follow any laws or regulations governing the Tenant’s activity or operation. Tenant shall also, at Tenant’s sole cost and expense, ensure that Tenant’s existing insurance coverage under the Lease shall be expanded to include any operations related to the Activity. Tenant further agrees, without limiting any indemnification terms in the Lease, to assume all liability for and expressly indemnify, defend, and hold Landlord harmless from any and all claims, losses, actions, demands, liabilities, damages, ju dgments, fines, penalties, forfeitures, settlements, expenses, attorney’s fees and costs, arising out of any instance of non-compliance with any federal, state, or local law, regulation or order (collectively “Claims”) sustained or alleged to have been DocuSign Envelope ID: B524F329-B97F-40EF-997B-D22DC8A8E86B Amendment to Lease for City of South Bend, Indiana Page 2 of 2 sustained in connection with or in any way related to the Activity, or the Tenant’s use thereof. In exchange for the right to conduct the Activity, Tenant shall, at its sole cost and expense, be responsible for keeping the Leased Premises and Common Areas in good order, repair, and condition for the duration of the Renewal Term. Tenant shall be solely responsible for any damage to property of Landlord or any third party resulting from the Activity. In the event any damage is caused to the Leased Premises and Common Areas by Tenant or its contractors, Tenant shall conduct any repairs at its sole cost and expense. The terms of this Amendment shall be read as part of the Lease. Except as specifically amended herein, the Lease remains in full force and effect as originally stated. In the event of any inconsistency in any terms or provision of the Lease and this Amendment, the terms and provisions of this Amendment shall control and govern. Any capitalized terms not defined herein shall have the meaning set forth in the Lease. LANDLORD: TENANT: Catalyst Two, LLC, an Indiana Limited Liability Company City of South Bend, Indiana by and through its Board of Public Works for the Benefit of its Department of Innovation & Technology By Great Lakes Capital Management, LLC, its manager By: Ryan Rans Its: Manager DocuSign Envelope ID: B524F329-B97F-40EF-997B-D22DC8A8E86B August 22, 2023 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 08/14/2023 Name Joseph Molnar Department DCI BPW Date 08/22/2023 Phone Extension 6022 Review and Approval Required Prior to Submittal to Board Diversity Compliance and Inclusion Officer Officer Name BPW Attorney Attorney Name Dept. Attorney Attorney Name Danielle Campbell Weiss Purchasing Check the Appropriate Item Type – Required for All Submissions Professional Services Agreement Contract Proposal Open Market Contract Amendment/Addendum Special Purchase, QPA Bid Opening Bid Award Req. to Advertise Title Sheet Quote Opening Quote Award Reject Bids/Quotes Proposal Opening C/O & PCA No. PCA Chg. Order, No. Traffic Control Resolution Other: Ease./Encroach Required Information Company or Vendor Name Catalyst Two, LLC New Vendor Yes If Yes, Approved by Purchasing No MBE/WBE Contractor MBE WBE Completed E-Verify Form Attached Yes No Project Name Amendment to Lease Agreement for the Technology Resource Center Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description This Amendment to the original Lease Agreement extends the City’s lease of the TRC in Ignition Park for three more years. For Change Orders Only Amount of Increase Decrease $ ($ ) Previous Amount $ Current Percent of Change: Increase Decrease % ( %) New Amount $ Total Percent of Change: Increase Decrease % ( %) Time Extension Amount: New Completion Date: