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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – May 22, 2025 <br /> <br />5 <br /> <br />back to Commission through a certain lease agreement dated as of <br />December 1, 2021 all of its rights, title, and interests in the property <br />and expressly provided the authority to Commission to enter into <br />agreements with other parties for the operation of the property. <br /> <br />The Redevelopment Commission approved a lease with Haunt of <br />Hounds, LLC for the restaurant Fatbird on July 1, 2020 located in the <br />Palais Royale at 103 W Colfax Ave. Haunt of Hounds, LLC then <br />provided notice to the Commission that they wished to exercise the <br />renewal option in the lease to extend the term to June 30, 2025. <br />The proposed lease between the RDC and Haunt of Hounds, LLC, <br />would continue this partnership with the following terms: <br /> <br />Lease Term: July 1, 2025 – June 30, 2028 <br />Rent increase of 3% annually from base rent of $2,971.00/month <br />• July 1, 2025 – June 30, 2026 Rent: $3,060.13/month <br />• July 1, 2026 – June 30, 2027 Rent: $3,151.93/month <br />• July 1, 2027 – June 30, 2028 Rent: $3,246.50/month <br />• Common Expenses increased to $1,000/month <br />• Prior lease was $975/month <br />• First month’s rent waived due to HVAC issues that occurred <br />in December of 2024 <br /> <br />Renewal of the Fatbird Lease will continue the activation of the Palais <br />Royale storefront, which adds a significant amount of vitality to <br />downtown South Bend while also providing appropriate rental revenue <br />for the space. <br /> <br />Secretary Wax asked if there have been evaluations done to determine <br />the market rate for rental tenants. Mr. Molnar stated that the RDC staff <br />have conducted informal investigations of what other restaurants are <br />paying, and this is slightly under the market rate, and this is due to <br />property improvements can take longer being property owned by the <br />city government. <br /> <br />Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by <br />Eli Wax, the motion carried unanimously; the Commission approved <br />the Sublease Agreement as presented on May 22, 2025. <br /> <br />5. Bid Specifications for Disposition of Property (4022 Old Cleveland Rd.) <br /> <br />Joseph Molnar, Assistant Director of Growth and Opportunity, <br />presented items 5A5-7 together to begin the disposition process of <br />4022 Old Cleveland Rd. RDC acquired property located at 4022 Old <br />Cleveland Road through a certain Real Estate Purchase Agreement <br />executed on October 10, 2024. This purchase was made with the