6A3 - Laserfiche WebLink

Home Browse Search

OYO 4� Department of Community Investment Joe Memorandum Tuesday, November 12, 2013 TO: City of South Bend Redevelopment Commission FROM: Debrah Jennings - Cl Staff SUBJECT: Lease 119 S. Michigan St. / Yummy Cupcakes Yummy Cupcakes, franchise owner Lawrence Katz has submitted a proposal to lease space located at 119 S. Michigan St. in the South Bend Central Development Area (SBCDA) with the following terms. Synopsis of Proposed Lease: • Lease Term five (5) years, with the option of two— five year lease renewals; • Initial rent is $8.00 per sq. ft., totaling $4,800.00 for six months of year one (due to 180 day rent commencement clause in proposal) and $9,600.00 year 2 -5; • Common Area Maintenance and real estate tax will be billed at $5.53 per sq. ft. totaling $3,318.00 for six months of year one and $6,636.00 year 2 -5; • Tenant will take procession of space in "as is condition"; • Owner will provide three (3) parking permits for Leighton Parking garage at no cost to tenant and (3) parking permits at a reduced rate of $30.00 each per month. The proposed lease will produce $73,062.00 during the 5 year lease agreement. The Commission will incur $14,400.00 for parking over the 5 year lease. If executed, the lease will net $58,662.00 during the 5 year lease period. The proposed lease will have private investment in the Michigan Street shop space of $24,000.00 (estimated $20.00 psf. @ 1200 sf ) The lease with Yummy Cupcakes will be paying the taxes and the CAM expenses, which the SBPD lease was not paying. Community Investment is in support of this national retail business locating in Downtown South Bend and believes the business is a good fit for the Michigan Street shops. In order to execute the Yummy Cupcakes lease the Commission will have to approve the termination of lease requested by the Downtown SBPD. The Commission may then approve the proposed lease with Yummy Cupcakes. Upon approval of this agreement, Redevelopment Retail will continue to maintain 100% occupancy. Staff recommends approval of • Approval of Lease with Yummy Cupcakes / Lawrence Katz / Irish Cupcakes [Zt W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574- 235 -9621 1 SOUTHBENDIN.GOV