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To: Redevelopment Commission <br />From: Staff — Debrah Jennings, Property Manage a <br />Subject: Bombay Boutique Lease Amendment <br />Date: April 26, 2011 <br />Bombay Boutique has been a retailer in the downtown South Bend area since 2006. As with several <br />retailers experiencing a slump in business, Bombay was no exception, and as a result the business <br />fell behind in their monthly rental payments. Bombay has requested a rent concession for one year, <br />which is the duration of their lease term. <br />Bombay acknowledges $4,839.84 delinquent rent owed to date. They would like to make monthly <br />payments of $403.32 for the next twelve (12) months on the delinquency. Bombay has also <br />requested a reduction in their base rent and Common Area Maintenance to a total of $10,000.00 per <br />year ($833.33 per month). Currently their base rent is $1,159.00 per month, and (CAM) is $495.69 <br />per month, for a total monthly rent and CAM of $1,654.69. <br />With the new Lease Amendment Bombay Boutique agrees to pay $1,236.65 per month (833.33 rent <br />and CAM plus $403.32 delinquent rent) commencing on May 1, 2011 and ending on April 30, 2012. <br />Additionally, Bombay agrees to pay 10% in extra rent on gross sales over $100,000.00 annually. <br />Bombay will be required to forward cash sales accounting monthly. <br />As an incentive for Bombay to pay as agreed $1,427.08 in late fees is not be included in the <br />delinquent rent however, if they do not follow the terms of the amended agreement the late fees will <br />be restored to the account and the terms will revert from the amendment to original lease terms. <br />In summary, with our long time relationship with Bombay and in view of their recent financial <br />problems due to the economy we would like to keep Bombay as one of our downtown South Bend <br />businesses. <br />Staff recommends approval of the proposed Lease Amendment. <br />HAWPDATA \correct memo.doc <br />