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HomeMy WebLinkAbout6C(4) Letter of Intentc C_<<~ CBRE (Bradley C8 RICHAR6 FLLIS 202 S. h/iichiyan Street Suite 900 South Bend. IN 4660 574-237-6000 574-237-6001 Fax August 17, 2009 Mr. Don Inks 106 N. Main St. South Bend, IN 46601 RE: Letter of Intent to Lease space at 121 S. Michigan Street Dear Don: we^~~~n~.cbre.cam/southbend Below please find an outline reflecting the tei-~ns necessary for the Redevelopment Commission to enter into lease negotiations. If these tei7ns are acceptable to you, please sign the LOI and return along with business plan and financials. All terms outlined below are subject to final review and approval of the Redevelopment Commission. We look forward to working with you. TENANT: Spark Fine Stationary BUSINESS USE: Retail sale of stationary, gifts and related items. PROPERTY: 121 S. Michigan Street South Bend, IN 46601 PREMISES: 1,423 Square Feet in the Michigan Street Shops at the address specified above. TERM: Three (3) years, commencing upon Lease Execution. Possession shall September 1, 2009 or upon execution of a temporary occupancy agreement. OPTION: Two (2) Three-year tei-~ns. Rent increase for each tlu•ee year te~7n will be capped at $1.00 p.s.f per year. RENT: The annual Modified Gross Rent shall be as follows: Year 1: $1 126 per square foot per year Year 2: $12.26 per square foot per year Year 3: $13.26 per square foot per year COMMON AREA MAINTENANCE (CAM): Tenant shall pay its pro-rata share of Common Area Maintenance "CAM" charges in addition to Base Rent as further defined in a lease. CAM charges will be based on actual expenses to maintain the property, including Real Estate Taxes and property insurance, which are incui-~-ed for each operating calendar year, estimated to be approximately Five Dollars and Twenty Six Cents ($5.26) per square foot per year. CAM charges are included in the above Modified Gross Rent. RENT COMMENCEMENT: Rent shall commence 90 days after Tenant is granted possession. INSURANCE: Tenant will cai-~y insurance for liability and on personal propeiTy and its improvements to the Premises in amounts and types further defined in the lease document. UTILITIES: Tenant shall bare all utility costs for its Premises, which shall be separately metered and billed directly to Tenant. DELIVERY OF SPACE: Landlord shall deliver the space in clean condition with HVAC, electrical and plumbing in good working order. LEASE GUARANTEE: The financial tei7ns of the lease shall be personally guaranteed by the Tenant for the first year of the initial Lease Term. FINANCIALS: The Redevelopment Commission requires all Tenant applicants to provide a copy of Tenant's financials. Please include a copy of your financials with your response. MAINTENANCE RESPONSIBILITIES: Tenant shall be responsible for all Interior Maintenance. Landlord shall be responsible for exterior Connnon Area Maintenance however, such costs and expenses shall be billed back to Tenant on a prorate basis as prescribed in the lease. TENANTS WORK: Tenant shall be responsible for all work associated with the storefront. Tenant will also be responsible for the build-out of all Tenant improvements including, interior build-out, fixtures, signage, etc. Tenant shall be pei7nitted to modify, remove, or construct interior partition walls subject to landlord's approval. LANDLORD'S WORK: Landlord shall fix or replace existing weather proofing seal at the bottom of the front door and shall ensure that the display windows are sufficiently & properly sealed. DEPOSIT: An amount equal to the first month's base rent and CAM as security deposit shall be due upon signing of a lease. SIGNAGE: Tenant shall be allowed to place its sign on the facade of the building. Said sign shall comply with all municipal code regulations and Landlord's signs specifications and written approval of Landlord shall be obtained prior to any sign installation. PARKING: Free two-hour parking is available on the street. Additional parking is available in the adjacent garage at hourly and monthly rates. Note that this letter is not a binding legal agreement, nor shall it be construed as a legal offer to lease. Neither Landlord nor Tenant shall have any obligation resulting fi•om the terms and conditions contained herein, nor shall any obligation or liability be incurred by either party until and unless a lease is signed and fully executed by both parties. Respectfully, CB Richard Ellis John Mester Associate, Brokerage Services Landlord: Date: Tenant: Date: • ~aakkeeping and Accounting Senriees • Sma[t Business Cosisulting • 1'ax ate#urn Freparatian Auk 1st I8, 2©09 To Gt~'l7o~n It 111a}f Concern: RE.: Joys Helmuth, Spark Design Studio, LLC Dear Reader, Nfy husband and I ow~a the building at 2 i 9 N. Hill Street, the present home of Spark l' ine Stationery and Spark Design Studio, Joya has leased a portion of the building from us since March 20U~. She has bcen a model tenant. ~~'e have not had ally problems with her c;ithcr in connection «~ith renG'utiHty payments or proper maintenance of the property. She has been courteous with a.ny requests she makes ot'us as ~~ell as any requests we make of her. She always gives us advance notice of any special functions she has pla~u~ed far her business. ~~'e really appreciate this in that eve also live in the building. 1Ve understand her need to relocate and ~i~ish her the ~rery best. If you have any questions about Joya, as our tenant, please feel free to contact rne. Very trul}~ yours, c- Glenda G. Lamont