HomeMy WebLinkAboutagenda report 2015 0312 rdc 06b3ITEM: 6.B.(3)
Department of
Community Investment
Memorandum
Monday, March 09, 2015
TO:
FROM:
SUBJECT:
Redevelopment Commission
Brock Zeeb, Director of Economic Resources
Yummy Cupcakes/ 1st Amendment to Lease
Yummy Cupcakes is requesting to restructure its lease agreement. Yummy incurred significantly higher
construction and startup costs. Because of construction delays and unforeseen renovations, Yummy was
unable to take advantage of the current lease's first four month stabilization period.
Attached is the proposed lease amendment payment schedule:
Important notes are:
• Term remains 5 years
• Total payments during the term increase by $5,000 (over 5 yrs.}
In effort to be flexible with a new tenant and to give the business an opportunity to take root and become
an anchor in downtown, staff requests approval of this lease amendment.
227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 I P: 574-235-9371 I FAX: 574-235-9021 I SOUTHBENDIN.GOV
FIRST AMENDMENT TO LEASE
This First Amendment To Lease (the "First Amendment") is made and entered into
effective February_, 2015, (the "Effective Date") by and between the City of South Bend,
Indiana, Department of Redevelopment, by and through its governing body, the South Bend
Redevelopment Commission ("Landlord"), and Irish Cupcakes, Inc. d/b/a Yummy Cupcakes, an
Indiana corporation, of 58727 Baugo Cove Drive, Elkhart, Indiana 46517 ("Tenant").
Background
A. Landlord and Tenant entered into that certain Lease dated November 14, 2013
(the "Lease"), for premises located at 119 S. Michigan Street, South Bend, Indiana, and more
particularly described in the Lease (the "Premises"); and
B. Landlord and Tenant desire to amend and modify certain terms and provisions of
the Lease.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained in the Lease and this First Amendment, and in accordance with Section 14.5 of the
Lease, the Lease is hereby amended as follows:
1. Each capitalized term used in this First Amendment shall have the meaning stated
in the Lease, unless otherwise defined in this First Amendment.
2. Section 1.2 of the Lease is deleted in its entirety and replaced with the table set
forth below. The terms stated in the table set forth below will be
in effect for each payment of
Base Rent after the Effective Date of this First Amendment, and Tenant will have no right to
claim any refund or offset of any amount paid to Landlord before the Effective Date of this First
Amendment. It is provided, however, that, notwithstanding anything to the contrary in the Lease
or this First Amendment, no Base Rent will be due for the months of February, March, April, or
May of2015.
1.2. Base Rent.
Lease Years
2
3
4-5
6-10
11 -15
3. In Section 5.2 of the Lease, the phrase "as defined in Section 5. 7(a)" is deleted
and replaced with the phrase "as defined in Section 5.8(a)."
4. The following Article XV is inserted immediately following the end of Article
XIV:
ARTICLE XV.
REPORTING REQUIREMENTS.
15.1 Required Reporting. Within thirty (30) days after the conclusion of each
quarter-year period during the Term of the Lease, Tenant will submit to Landlord a
certified report concerning Tenant"s operations and financial performance during the
previous quarter-year period (each, a "Quarterly Report"). In each Quarterly Report,
Tenant will provide (a) Tenant's then-current interim or annual financial statements, as
the case may be, including (i) balance sheet, (ii) income statement, and (iii) statement of
cash flows; (b) Tenant's discussion of its current operations; and (c) Tenant's projection
of revenues for the upcoming quarter-year period. Tenant will certify in each Quarterly
Report that its contents are true and accurate. For purposes of Tenant's obligations under
this Section 15 .1, the quarter-year periods are defined as follows: "Q l" means the period
from January 1 to March 31; "Q2" means the period from April 1 to June 30; "Q3"
means the period from July 1 to September 30; and "Q4" means the period from October
1 to December 31. The first Quarterly Report due to Landlord under this Section 15 .1
will be due within thirty (30) days after the conclusion ofQl of2015.
15 .2 Default. Any failure by Tenant to perform its obligations under Section
15.1 to Landlord's reasonable satisfaction, which is not cured within five (5) days of
notice of such failure from Landlord, will constitute an Event of Default under the Lease.
5. All terms and conditions of the Lease will remain in full force and effect unless
expressly modified by this First Amendment.
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
instrument.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment To
Lease as of the Effective Date.
CITY OF SOUTH BEND, INDIANA,
DEPARTMENT OF REDEVELOPMENT,
BY AND THROUGH THE SOUTH BEND
REDEVELOPMENT COMMISSION
By:
Printed: ----------
Title:
~----------
ATTEST
By:
Printed: ----------
Title:
---=--~--~~~~~~-
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IRISH CUPCAKES, INC.,
an Indiana co.rporati_Q:tl,