Title
Resolution to Approve Acceptance of a $275,000.00 Payment from the YMCA to Resolve All Outstanding Financial Obligations Between the City and YMCA Regarding the Former YMCA Site at 350 S. Fifth Ave
Memorandum
Attached for your review and action is a resolution to approve receipt of a $275,000 payment from the YMCA. This payment resolves all outstanding financial obligations between the YMCA and City as they relate to the City’s purchase of the former YMCA site at 350 S Fifth Ave., Ann Arbor, Michigan.
In April 1995, the City provided financial assistance to the YMCA in order for the YMCA to continue to operate and manage the residency program (SRO housing) at the YMCA site at 350 S. Fifth Ave. In providing this assistance the City entered into a management agreement with the YMCA which provided for the City’s right of first refusal to purchase the YMCA. An additional term of the management agreement was that if the YMCA were to sell the property, the YMCA would repay the City from the proceeds of the sale all funds advanced to support the residency program from January 1, 1988, which, at the time was $1,918,000. This amount was to be reduced over time by certain amounts as specified in the management agreement. In December 2003, the City exercised its right of first refusal and purchased the former YMCA building. Consistent with the terms of the management agreement, the YMCA agreed to reimburse the City $483,678 over 10 years, which was the amount still owed to the City from the original $1,918,000.
Subsequent to the City’s purchase of the site in 2003, the YMCA continued to operate and manage the SRO housing per a lease agreement until October 2005, at which time the City closed the facility because it was uninhabitable. Over the course of the next few months the City provided ongoing, off-site temporary housing for the former YMCA residents. During this period, the YMCA provided staffing to assist the City with managing the housing at vari...
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