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, 2021. The term of the new lease agreement is proposed to be for one year, with an option to renew the lease administratively for four additional one-year periods. The proposed new lease includes some notable changes from the expiring one:
* The University agrees to a 3% rental increase for Lot A and Lot C.
* Total annual revenue is $129,448, up from $127,007.
* The City will increase the use in Lot B for the 2 weeks prior Memorial Day to accommodate opening the pool earlier. This usage includes the four northern most rows of the parking lot.
* The City and University have agreed to not increase the rental rate of Lot B to offset that increased use.
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 from two weeks prior to Memorial Day until two weeks after Labor Day. As Park staff have extended the pool schedule beyond traditional summer days, the University has worked with the City to adjust the agreement to help provide additional parking during those shoulder seasons.
The revenue derived from the lease in recognized in the Park & Recreation Services General Fund revenue budget. Annua...
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