HomeMy WebLinkAbout5A1_Lease Agreement & Donation AgreementRedevelopment Commission Agenda Item
DATE: 04/23/2024
FROM: Joseph Molnar
SUBJECT: Lease Agreement & Donation Agreement
YMCA
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Separate approval of Donation Agreement and Lease Agreement with the YMCA
On March 28th 2024, the RDC approved the buyout of the former ground lease associated with Leighton
Healthplex Building, giving the City full ownership interests to that building. At that time, RDC also
approved a temporary lease agreement with Beacon Health System to remain in the ground floor of the
building for physical therapy services and the 3, 4, 5 floors for the Beacon Health and Fitness gym.
Beacon has alerted RDC staff that they will be vacating the health and fitness portion of their leased
space at the end of May.
In the meantime, the YMCA and City staff had been in discussions regarding expanding the YMCA’s
presence in South Bend to complement the existing partnership at the O’Brien Center. Upon learning of
Beacon's intent to vacate the health and fitness portion of the Leighton Healthplex Building, the City
began to discuss with the YMCA the possibility of their tenancy in the building, which ultimately led to
the two agreements being considered at this meeting.
The Lease Agreement being considered at this meeting contains a long-term commitment by the YMCA
to occupy and operate a fitness center in the Leighton Healthplex Building. In exchange for long-term
reduced rent in the space, the YMCA has agreed to donate the former YMCA on Northside Blvd. to the
RDC. RDC staff believe that the former YMCA is a good redevelopment opportunity site within the River
East Development Area.
The YMCA would lease the 3, 4, 5 floors of the Leighton Healthplex Building to operate a fitness center.
In addition to the services currently provided by Beacon, the YMCA would eventually add child watching
services in a portion of the 2nd floor of the building for parents who desire to use the YMCA's fitness
services. The YMCA would pay 1/3 of the total utility costs for the building during the term of the lease,
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: __4.25.26
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
X
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which extends through December 31, 2032. YMCA members will have full use of both the O’Brien Center
and the new downtown YMCA center as well.
Members of Beacon Health & Fitness South Bend who wish to maintain access to a downtown fitness
facility will receive an exclusive invitation to join the YMCA. City staff would operate under the current
MOU with the YMCA and receive discounted memberships.
Staff requests approval of both agreements.
INTERNAL USE ONLY: Project Code: _______________________________________________;
Total Amount new/change (inc/dec) in budget: _______________; Break down:
Costs: Engineering Amt: ______________________; Other Prof Serv Amt_________________;
Acquisition of Land/Bldg (circle one) Amt: ___________; Street Const Amt ________________;
Building Imp Amt_________; Sewers Amt_________; Other (specify) Amt: ________________
___________________________________________. Going to BPW for Contracting? Y/N
Is this item ready to encumber now? ____ Existing PO#__________ Inc/Dec $_____________
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