The URL can be used to link to this page

Home My WebLink About5A1 Second Amendment to YMCA Lease (Leighton Building) - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 11/19/2025 F ROM: Joseph Molnar, Assistant Director of Growth & Opportunity SUBJECT: Second Amendment Leighton Building YMCA Lease 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: Approve the Second Amendment to the Lease for the Leighton Building with the YMCA SPECIFICS: The Redevelopment Commission acquired the Leighton Building in downtown South Bend in the spring of 2024 as part of a large development agreement with Beacon Health Systems. Soon after, the Redevelopment Commission approved a lease with the YMCA of Michiana for use of floors 3, 4, and 5 of the Leighton Building for the purposes of full-service health and fitness center. The current lease with the YMCA was partnered with a donation of the former YMCA on Northside Blvd. to the Redevelopment Commission and runs through calendar year 2031. The YMCA has successfully opened the fitness center downtown and is enjoying robust membership. Due to their success in downtown South Bend, the YMCA desires to expand their offerings in the Leighton Building and open a full-service childcare and pre-k facility on the first floor of the building. Opening new quality childcare options has been a long-standing priority of the City of South Bend. The proposed Second Amendment makes the following changes to the existing lease: •YMCA will continue to lease the entirety of floors 3, 4, and 5 and maintain the pool mechanicals and will begin leasing approximately 9,500 square feet of the first floor on May 1, 2026. This is approximately 2/3 of the usable space of the first floor. •Starting in calendar year 2026, the YMCA will reimburse the RDC one half (1/2) of all existing utility expenses for the building, this is up from the existing one third (1/3) currently. •YMCA commits to operating a full-service daycare facility on the first floor in addition to the health and fitness center on the floors 3-5 Staff recommends approval of the Second Amendment which will add a new quality daycare service to downtown South Bend in addition to furthering the City of South Bend’s partnership with the YMCA long- term. ______________ ___________Pres/V-Pres ATTEST: __________ ________Secretary Date: _____________ _______ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION November 24, 2025  SECOND AMENDMENT TO LEASE AGREEMENT This Second Amendment to the Lease Agreement is made effective as of November 24, 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 YMCA of Greater Michiana, a Michigan nonprofit corporation (“Tenant”), with offices at 905 North Front St., Niles, MI 49120 (each a “Party” and together, the “Parties”). Recitals A.The Parties entered into a certain Lease Agreement dated April 25, 2024, as amended by a First Amendment to Lease Agreement dated July 25, 2024 (together the “Lease”), in which the Landlord agreed to lease the Leased Premises to the Tenant for the purposes of operating a health and fitness center. B.Tenant desires to also offer a full-service daycare facility at the Leased Premises in 2026. C.The Parties now desire to modify certain portions of the Lease as set forth herein. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained in this Second 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 first sentence of Section 1 shall be deleted in its entirely and replaced with the following: Landlord hereby leases to Tenant and Tenant hereby leases from Landlord all of the 3rd, 4th, and 5th Floors of the Property, and, effective as of May 1, 2026 (or earlier if written notice is provided from Landlord that the space is available for occupancy sooner), a portion of the 1st Floor of the Property, comprising approximately nine thousand five hundred (9,500) square feet in size, all as further depicted in the attached Exhibit 2 (the “Leased Premises”). 2.Section 4 of the Lease shall be deleted in its entirety and replaced with the following: Tenant covenants and agrees to pay one-third (1/3) of all existing utility expenses associated with operating the Property for calendar years 2024 and 2025 of the Lease Term, including, but not limited to, expenses stemming from the Property’s electricity, water, and gas utility accounts (collectively, the “Utility Expenses”). For calendar years 2026 through 2031, Tenant agrees to pay one-half (1/2) of the Utility Expenses. Landlord will provide copies of invoices for all Utility Expenses incurred during the previous twelve (12) months of operation to Tenant on an annual basis, which will be delivered to Tenant on or before January 31st of each year, and Tenant shall pay its required share of the sum of all utility invoices presented to Tenant to Landlord on or before February 28th of each year until Tenant’s portion of all Utility Expenses incurred during the Lease Term have been reimbursed. Tenant shall also pay all other routine costs of building maintenance and daily operations incurred by Tenant during the Lease Term for the space Tenant occupies as further described in Section 10 of this Lease. In the event the Utility Expenses are not paid in full by Tenant on or before February 28th of the year it becomes due, Tenant shall also pay Landlord a late charge, which shall be equal to $25.00 per day for each day payment of Utility Expenses is late, with a fifteen (15) day grace period before late fees are charged. 3.Section 6 of the Lease shall be deleted in its entirety and replaced with the following:: For the entirety of the Lease Term, the Leased Premises shall be primarily used and occupied as a health and fitness center, with child watch services also offered on the Leased Premises to patrons utilizing Tenant’s services (the “Use”), and all other work performed by employees of Tenant in the ordinary course of their duties on behalf of, associated with, and/or affiliated with Tenant and consistent with Tenant’s Use of the Leased Premises. Effective as of May 1, 2026 (or earlier if written notice is provided from Landlord), the Use may also include a full-service daycare facility at the Leased Premises. The Leased Premises may not be used for any other purpose inconsistent with Tenant’s Use without the prior written approval of the Landlord. Tenant shall be solely responsible at all times for obtaining and maintaining all required licenses, certifications, and permits for the Use. Tenant shall ensure full compliance with all applicable laws, regulations, and safety standards, and shall bear all costs associated with any required modifications, inspections, or equipment. Tenant shall indemnify and hold Landlord harmless from any claims or liabilities arising from the Use. 4.The first sentence of Section 9 of the Lease shall be deleted in its entirety and replaced with the following: Tenant shall have access to the portions of the 2nd floor that contain pool mechanicals and shall be responsible for maintenance of the pool mechanicals while Tenant continues to lease the Leased Premises for the Use. 5.Section 21 shall be amended to replace the address that Landlord receives notices or communications under the Lease as follows: To Landlord at: Executive Director of Community Investment Department of Community Investment City of South Bend 215 S. Dr. Martin Luther King, Jr. Blvd Suite 500 South Bend, IN 46601 With a copy to: Corporation Counsel Department of Law City of South Bend 215 S. Dr. Martin Luther King, Jr. Blvd Suite 600 South Bend, IN 46601 The remainder of Section 21 shall remain unchanged. 6. Exhibit 2 shall be deleted in its entirety and replaced with Exhibit 2 attached to this Second Amendment. 7.Unless expressly modified by this Second Amendment, the terms and provisions of the Lease remain in full force and effect. 8.Capitalized terms used in this Second Amendment will have the meanings set forth in the Lease unless otherwise stated herein. Signature Page Follows IN WITNESS WHEREOF, the undersigned have executed this Second Amendment as of the date set forth after their signatures. SOUTH BEND REDEVELOPMENT COMMISSION By: Troy Warner, President Date: ________________________ ATTEST: By: Eli Wax, Secretary Date: ________________________ THE YMCA OF GREATER MICHIANA Mark Weber, Chief Executive Officer Date: _____________________________ November 24, 2025 November 24, 2025 EXHIBIT 2 Floor Plans (See Attached) First (1st) Floor Tenant shall lease from Landlord a portion of this first floor, which equals approximately 9,500 square feet, which is outlined in blue and purple in the image above. Minor adjustments to the leasable space on the first floor may be made if mutually agreed upon by the Landlord and Tenant in writing. All remaining portions of this floor not leased to Tenant shall be reserved for the Landlords exclusive use. Third (3) Floor Fourth (4th) Floor Fifth (5) Floor