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� C (-2-) ,pb,ayi,� Community & Economic Development , Iu5 1200 County -City Building, 227 West Jefferson, South Bend. Indiana 46601 -1830 - Phone 574/235 -9371 - Fox 574/235 -9021 To: South Bend Redevelopment Commission From: Don Inks Subject: Curtis Products Letter of Intent — Bosch Site Date: November 26, 2012 Attached is a Letter of Intent (LOI) — Summary of Lease Terns for the lease of the Bosch site to Curtis Products. Curtis Products would have a 12 year lease with the first two years at no rent, and subsequent years at market or slightly above. Curtis Products would also have the option to buy the site for $1,350,000 at any time during the first two years. The LOI also provides for the Redevelopment Commission to provide $250,000 for improvements to the building to be determined in conjunction with Curtis Products. The Redevelopment Commission is being asked to approve the terms of this LOI and authorize proceeding to the preparation of a Lease for the site. Bosch will be returning possession of the site to Redevelopment at the end of this year. The target date for Curtis Products to take possession is May 1, 2013. There will be an interim period where Redevelopment will be responsible for the site, and at our next meeting a proposal for property management services will be brought before the Commission. Our annual holding costs for this site have been estimated at about $650,000, including security, maintenance, utilities and property taxes. While there is no rent in the first two years of the lease, these holding costs will be avoided, except during Redevelopment's interim holding period. These costs have been budgeted for in 2013. Average appraised values for the site were $1,967,000 to purchase and $1.63 per square foot to lease. The Option Purchase Price to Curtis Products of $1,350,000 represents a savings to Curtis of ~ Wb Do Today Makes A DhYerence t