Title
Resolution to Approve Amendment No. 1 to Sublease Agreement Between Washtenaw County and the City of Ann Arbor (15th District Court Offices) (8 Votes Required)
Memorandum
The attached resolution approves amendment retroactively to January 1, 2009, of the sublease between the County and the City for courtroom and office space for 15th District Court within the Washtenaw County Courthouse.
On December 15, 2006, the Washtenaw County Board of Commissioners passed Resolution No. 06-0036 approving amendment of the then current sublease which extended the lease term through December 31, 2009 and disallowing any grant of hold-over status to the City beyond the specified date.
Since that time, the City has explored several options relating to Courthouse and office space for 15th District Court. During that period, no action was taken to accept or reject the limited extension option offered by the County. The extension offer remains valid.
The sublease agreement with the County expired on December 31, 2008. The City is currently occupying the space as a hold-over tenant under the original terms of the sublease. Approval of the sublease amendment will guarantee the lease term through December 31, 2009 and establish the building operation charge for that period.
Under the terms of the Sublease, the City pays a monthly Buildings Operation Charge. That charge is calculated annually by the County based on a fiscal year (July 1-June 30) rather than a calendar year. For the period July 1, 2008 to June 30, 2009, the monthly charge was established at $26,829.50 per month/12 months total $321,954.00. This represented an increase of approximately 6% from the previous year. The Building Operation Charge for July 1, 2009 through June 30, 2010 has not yet been established by the County. It is anticipated that a similar percentage increase will be implemented.
Funding for the Building Operation Charge are included in the approved FY 09 15th District Court b...
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