Title
Resolution to Recommend Approval of the Fuller Park Parking Lot Land Lease with the University of Michigan (8 Votes Required)
Memorandum
Attached for your review and recommendation 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, 2016. The term of the lease agreement will be for one year, with an option to renew the lease for one additional one-year period. The proposed new lease retains the same language as the expiring agreement with minor operational amendments.
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 and 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 is recognized in the Parks & Recreation General Fund revenue budget. A 2.5% increase was negotiated in 2015 as part of an administrative renewal. Annual revenue per terms of this lease will be $88,837 - an increase of 28% since 2009.
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.
Staff
Prepared by: Josh Landefeld, Interim Parks and Recreation Manager
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, On September 29, 1993, an agreement was entered into between the City of Ann Arbor and University of Michigan for the establishment and operation of a parking lot on City-owned property at Fuller Park, located south of Fuller Road;
Whereas, The parking lots north of Fuller Road have been leased to the University since 2009;
Whereas, The lease generates significant revenue for the Parks & Recreation General Fund;
Whereas, It is the desire of the City and the University to continue the lease arrangement;
Whereas, The term of the agreement shall be one years, with an option to administratively renew the lease for one additional one-year term; and
Whereas, The Park Advisory Commission recommends that City Council approve the Fuller Parking Lot Lease with the University of Michigan;
RESOLVED, That City Council approve a lease of parking lots on the City-owned property at Fuller Park for one-year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the lease after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to execute the one-year administrative renewal lease if deemed in the best interest of the City and to take such other actions necessary to implement this Resolution.
As Amended by Ann Arbor City Council on August 15, 2016