Title
Resolution to Approve Fuller Park Parking Lot Land Lease with the University of Michigan (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve a land lease agreement with The University of Michigan to lease the three parking lots at Fuller Park. The existing lease expires on August 31, 2014. The term of the new lease agreement will be for two years, with the University having the option to renew the lease for one additional two-year period.
The three lots are the existing parking lot south of Fuller Road adjacent to the railroad tracks (Lot A), the paved parking lot north of Fuller Road at Fuller Park (Lot B) and the unpaved parking lot also north of Fuller Road at Fuller Park (Lot C). Lot A has been leased to the University for parking since 1993. Lots B & C have been leased since 2009.
The primary function of the three parking lots is to provide parking for park activities. The leases restrict University use during peak park use time periods. Exhibit A of the agreement contains provisions for maintenance, security and signage, and specifies the days and times of use. Lot A will be leased to the University from 4:00 am to 4:00 pm Monday through Friday. Lot B (paved lot) will be leased from 6:00 am to 5:00 pm Monday through Friday, beginning the day after Labor Day through the Friday before Memorial Day, excluding holidays. Lot C (unpaved lot) will be leased from 6:00 am to 5:00 pm Monday through Friday, excluding holidays.
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The revenue derived from the lease is recognized in the Parks & Recreation General Fund revenue budget. A 7.5% increase was negotiated in 2012. Annual revenue per terms of this lease will be $78,665.00.
Differences between the expiring lease and proposed new lease:
? The expiring lease has a section titled "Early Termination/Potential Rail Station and Local Connector." The proposed new lease replaces this section with a similar section titled "Early Termination/ Trans...
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