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HomeMy WebLinkAbout5A8 First Amendment to Network Operating Center Lease (Union Station) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 8/8/2025 FROM: Erin Michaels – Property Development Manager SUBJECT: First Amendment – 1547 CSR – South Bend, LLC Network Operating Center Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. * Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. PURPOSE OF REQUEST: Approval of Proposed First Amendment to Network Operating Center Lease with 1547 SCR – South Bend, LLC SPECIFICS: The Redevelopment Commission acquired the property located at 320 W South Street, more commonly known as Union Station, through a Purchase Agreement dated July 25th 2024. As a part of this acquisition the Redevelopment Commission was transferred the rights and obligations of a Network Operating Center Lease (the “Lease”) with 1547 CSR – South Bend, LLC (the “Tenant”). The Tenant is also the owner of the adjacent property located at 506 W South Street and operates a data center in this building which shares a wall and entrance with Union Station. The Tenant is working to separate the data center facility from Union Station and construct their own entrance. In the interim the Tenant is occupying space and maintaining security at the entrance to Union Station per the terms of the Lease. The Tenant has requested an extension of the termination date of the Lease to allow for the additional time needed for construction to separate the data center facility from Union Station. Per the Lease the termination date is August 19, 2025. The proposed First Amendment would extend this termination date to August 19, 2026 to allow the additional time needed to fully separate the buildings. The Tenant would continue to provide 24/7 security and property supervision for Union Station through the extended length of the Lease. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION August 14, 2025  FIRST AMENDMENT TO LEASE AGREEMENT This First Amendment to Networking Operating Center Lease (“First Amendment”) is made effective as of August 14, 2025 (the “Effective Date”) by the City of South Bend, Indiana, Department of Redevelopment, acting by and through its governing body, the South Bend Redevelopment Commission (the “Landlord”) and 1547 CSR – South Bend, LLC, a Delaware limited liability company (“Tenant” and collectively with the Landlord, the “Parties”). Each of the Parties may be referred to in this Amendment as a “Party.” Recitals A.Tenant and Union Station Properties Holding LLC entered into a certain Network Operating Center Lease dated August 20, 2024 (the “Lease”) to set forth Tenant’s access rights and use of the network operating center currently existing at the property located at 506 West South Street in South Bend, Indiana as well as its security obligations thereto. B.Union Station Properties Holding LLC transferred and assigned all of its rights and obligations under the Lease to the South Bend Redevelopment Commission as Landlord under a certain Assignment and Assumption of Leases and Licenses dated August 20, 2024. C.The term of the Lease is currently set to terminate on August 19, 2025. D.Tenant has requested to extend the termination date of the Lease to account for additional time needed for construction related to their use, and Landlord believes an extension of the Lease term is in the best interests of the health, safety, and welfare of the City and its residents. E.The Parties therefore now desire to modify certain portions of the Lease as further set forth herein. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained in this First Amendment and the Lease and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows: 1.The phrase “August 19, 2025” shall be deleted from Section 4 and replaced with the phrase “August 19, 2026”. 2.Unless expressly modified by this First Amendment, the terms and provisions of the Lease remain in full force and effect. 3.Capitalized terms used in this First Amendment will have the meanings set forth in the Lease unless otherwise stated herein. 4.The recitals set forth above are hereby incorporated into the operative provisions of this First Amendment. 5.This First Amendment will be governed and construed in accordance with the laws of the State of Indiana. 6.This First Amendment may be executed in separate counterparts, each of which when so executed shall be an original, but all of which together shall constitute one and the same Docusign Envelope ID: 0C9CC615-571B-417F-93CA-0CA522DAD4D8 instrument. Any electronically transmitted version of a manually executed original shall be deemed a manually executed original. Signature Page Follows Docusign Envelope ID: 0C9CC615-571B-417F-93CA-0CA522DAD4D8 IN WITNESS WHEREOF, the undersigned have executed this First Amendment as of the date set forth after their signatures. “LANDLORD” SOUTH BEND REDEVELOPMENT COMMISSION By: Troy Warner, President ATTEST: Eli Wax Secretary Date: _____________ “TENANT” 1547 CSR – South Bend, LLC a Delaware Limited Liability Company By:___________________________ Its__________________________________ Date:_______________________ Docusign Envelope ID: 0C9CC615-571B-417F-93CA-0CA522DAD4D8 Authorized Signatory 8/6/2025 August 14, 2025