HomeMy WebLinkAbout5B2 First Amendment to Lease Agreement (East Bank Learning Center) - SignedSouth Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Redevelopment Commission Agenda Item
D ATE : 9/2/25
FROM: Erin Michaels – Property Development Manager
SUBJECT: First Amendment to Commercial Lease with East
Bank Learning 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 Commercial Lease between the RDC and East
Bank Learning Center
SPECIFICS: The Redevelopment Commission approved a purchase agreement for the former Oaklawn building
located at 425 E Madison on November 25, 2024 and the RDC was assigned as Lessor to the Commercial Lease
with the current tenant, the East Bank Learning Center.
The East Bank Learning Center and RDC staff wish to amend the Commercial Lease to add or revise the following
terms:
- Clarify the leased space for the East Bank Learning Center
-Either party may terminate this Commercial Lease with eighteen (18) months written notice
- Clarify the Maintenance and Repairs responsibilities of the Lessor and Lessee
-Update the annual rent increases to 2.5%
-Update renewal terms to allow Lessee to renew lease for a twenty-four (24) month term provided they
notify Lessor eighteen (18) months prior to the expiration of the Lease.
o Rent during the renewal period to increase at a rate of 2.5% for the first twelve (12) month
period of the renewal term and 2% for the second twelve (12) month period of the renewal term
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
September 11, 2025
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FIRST AMENDMENT TO COMMERCIAL LEASE
This FIRST AMENDMENT TO COMMERCIAL LEASE (the “First Amendment”) is
made and entered into effective on the 11th day of September, 2025 (“Effective Date”), among
EBLC, LLC, an Indiana limited liability company (the “Lessee”) and the City of South Bend,
Indiana, Department of Redevelopment, by and through its governing body, the South Bend
Redevelopment Commission (collectively, the “Lessor”) (Lessee and Lessor are hereinafter
collectively referred to as the “Parties”, and each individually is hereinafter referred to as a
“Party”).
RECITALS
WHEREAS, Lessee and Oaklawn Psychiatric Center, Inc. (“Oaklawn”) entered into that
certain Commercial Lease dated October 1, 2017 (the “Original Lease”), and subsequently
executed an Addendum modifying certain terms, made effective on October 4, 2023 (the
“Addendum”) (the Original Lease, together with the Addendum, is hereinafter referred to
collectively as the “Commercial Lease”), a true and accurate signed copy of which is attached
hereto, and fully incorporated by reference, as Exhibit “1”;
WHEREAS, on April 1, 2025, Oaklawn transferred its ownership of the property located
at 425 E. Madison St., which contains the property that is the subject of the Commercial Lease, to
the South Bend Redevelopment Commission (“Lessor”) and assigned the Commercial Lease to
Lessor by way of the execution of that certain Assignment of Recorded Lease dated April 1, 2025
and recorded as Document Number 2025-07251 in the Office of the Recorder of St. Joseph County,
Indiana on April 2, 2025; and
WHEREAS, Lessee and Lessor each desire to amend the Commercial Lease in certain
respects, while leaving the remaining terms and provisions of the Commercial Lease unchanged,
as further set forth herein.
NOW THEREFORE, Lessee and Lessor agree as follows:
1.Recitals. The above recitals are incorporated by reference and fully made part hereof.
2.Definition of Terms. All defined terms as used herein shall have the same meaning as set
forth in the Commercial Lease, unless separately defined herein. Capitalized Terms used
in this First Amendment shall have the same meanings set forth in the Commercial Lease,
except as otherwise stated herein.
3. Amendments. The Parties hereby agree that the following amendments shall be the only
amendments to the Commercial Lease:
i.Paragraph 1, titled “Property Rented” shall be deleted in its entirety and
replaced with the following:
1. Property Rented. Lessor hereby leases to Lessee, and Lessee agrees to
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lease from Lessor, a portion of the real estate located at 403. E.
Madison Street, South Bend, Indiana. The legal description of such
real estate is Lot 4A East Bank Replat 12/13 NP#4334 06-2811. The
portion thereof being leased by Lessee (hereinafter referred to as the
“Premises”) is shown on the attached Exhibit 2 and commonly known
as 425 E. Madison Street, , South Bend, Indiana. The square footage
of the Premises is stipulated by the parties to be approximately 6,075
square feet.
ii.Paragraph 2, titled “Term” is hereby deleted in its entirety and replaced
with the following:
“2. Term. This Commercial Lease shall commence as of the Effective
Date and shall continue through September 30, 2028 (the “Term”). Either
Party may terminate this Commercial Lease at any time by providing to the
other party written notice delivered no later than eighteen (18) months prior
to the termination date.”
iii.
Paragraph 6, titled “Maintenance and Repairs” is hereby deleted in its
entirety and replaced with the following: “6. Maintenance and Repairs.
Lessor agrees to maintain the following in good working order and repair at
Lessor’s sole cost and expense for the duration of the lease Term: all interior
and exterior maintenance and/or repairs including, but not limited to, the
maintenance and/or repairs of all doors, windows, roofs, gutters and
downspouts, HVAC, mechanicals, electrical, plumbing and plumbing
fixtures, and foundation at the Premises herein being leased by Lessee.
Lessor shall have the right at reasonable times, and with at least twenty-four
(24) hours written notice, to enter the Premises to inspect the same, and
make repairs, alterations, or modifications as deemed appropriate by Lessor,
and as approved by Lessee. Lessee shall be responsible for all routine
cleaning and janitorial service of the interior of the Premises. Lessee shall
be responsible for all repairs and/or maintenance required as a result of the
negligence, misconduct, or other actions of Lessee, its agents, employees,
and invitees, including damages or expenses arising as to the Premises due
to violations of the use restrictions set forth above.”
iv.Paragraph 4, titled “Rental” is hereby deleted in its entirety and replaced
with the following provision:
“4. Rental. Lessee shall pay to Lessor, as rental for the leased Premises through
the end of the Term, the sum of $8,748.00 per month, payable on the first day of
each month of the Term. The monthly rental shall increase by 2.5% per year,
including Amendments and the Renewal Terms. All such payments shall be made
to the address of Lessor set forth in paragraph 23 below, or as otherwise directed
by Lessor to Lessee in writing.”
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v.Paragraph 10, titled “Taxes and Assessments” shall have the text “415”
deleted and replaced with “403” with the remainder of the Section
remaining unchanged.
vi.Paragraph 23, titled “Notices” shall have the Lessor contact information
replaced with the following:
If to Lessor: City of South Bend
Attn: Erin Michaels
227 W Jefferson Blvd, Suite 1400 S
South Bend, IN 46601
With a copy to: South Bend Legal Department
Attn: Corporation Counsel
227 W. Jefferson Blvd., Ste. 1200S
South Bend, IN 46601
vii.The fourth paragraph of the Addendum shall be eliminated, and a new
Paragraph 25 shall be inserted into the Commercial Lease, titled “Renewal,”
which states as follows:
“Renewal. At the end of the Term, Lessee may renew this lease for a period
of twenty-four (24) months (the “Renewal Term”), provided that Lessee
provides Lessor with its written intent to renew not less than eighteen (18)
months prior to the expiration of the Term. Such Renewal Term shall be
subject to the same terms and conditions as set forth herein, except for rent,
which shall increase on an annual basis by two and one half percent (2.5%)
from the rental rate during the Term starting on the date the Renewal Terms
begins, and by another two percent (2%) starting on the date which is the
one year anniversary of the commencement of the Renewal Term through
the end of the Renewal Term. In the event Lessor engages in discussions
with prospective purchasers of the Premises during the Term, Lessor agrees
it will use commercially reasonable efforts to involve Lessee in such
discussions to allow Lessee to consider any and all prospects for a longer
term lease following the expiration of the Term, or the Renewal Term, as
applicable.”
4.Commercial Lease Enforceability: With the exception of the amendments to the
Commercial Lease contemplated by this First Amendment, all other terms and provisions
of the Commercial Lease remain unchanged and in full force and effect, and the Parties
hereby expressly reaffirm their respective obligations under the Commercial Lease. To the
extent a conflict exists between the Commercial Lease and this First Amendment, the terms
of this First Amendment shall control.
5.Unless expressly modified by this First Amendment, the terms and provisions of the
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Lease remain in full force and effect.
6. This First Amendment will be governed and construed in accordance with the laws of the
State of Indiana.
7. 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
instrument. Any electronically transmitted version of a manually executed original shall
be deemed a manually executed original.
Signature Page Follows
September 11, 2025
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IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to
Commercial Lease to be effective as of the Effective Date regardless of when executed below.
“LESSEE”:
EBLC, LLC
By:
Name: Keith Kleppe, Managing Member
Date:
“LESSOR”:
CITY OF SOUTH BEND, INDIANA,
DEPARTMENT OF REDEVELOPMENT, BY
AND THROUGH ITS GOVERNING BODY, THE
SOUTH BEND REDEVELOPMENT
COMMISSION
By:
Troy Warner, President
ATTEST: ___________________________
Eli Wax, Secretary
Date: _____________
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EXHIBIT 1
Commercial Lease & Addendum
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EXHIBIT 2
The Premises