Title
Resolution to Approve the Fuller Park Parking Lot Land Lease with the University of Michigan (8 Votes Required)
Memorandum
Attached for your review 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, 2020. The term of the new lease agreement is proposed to be for one year, with an option to renew the lease administratively for two additional one-year periods. The proposed new lease includes some notable changes from the expiring one:
* The University agrees to a rental increase in the amount of $28,348 for the Lot A (South Lot) to reflect the change from Yellow to Blue permit.
* The University agrees to a 3% rental increase for Lot B and Lot C.
* Total annual revenue is $127,007, up from $94,248.
* The University is requesting 24/7 access to Lot A.
* A certain number of spots in Lot A will be reserved for park use only
* The City will have the ability to use Lot A for special events and weekend access.
* The North lots will have a start time of 5 am.
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 a 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 visitors and the hours that the lots are available for University use is determined with this in mind. For example, Lot B, nearest the pool is not available for University use between Memorial Day and Labor Day.
The revenue derived from the lease in recognized in the Park & Recreation Services General Fund revenue budget. Annual revenue per terms of the lease will be $127,007 for the September 1, 2020 - August 31, 2021 which is nearly a 35% increase from the cur...
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