Title
Resolution to Approve a Five-Year Lease Agreement with the Ann Arbor Public Schools for the Eberbach Cultural Arts Building (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to approve a five-year lease agreement with the Ann Arbor Public Schools (AAPS) for Eberbach Cultural Arts building at 1220 Wells Street for use as a public recreation facility. This lease will replace the existing lease with AAPS for the building, which expires on March 31, 2024. Per the draft lease agreement, AAPS will pay the City $1.00 per year in rent and make capital facilities payments annually for each year of this lease.
The Eberbach Cultural Arts building is owned by the City and part of the Park system. The AAPS Recreation and Education Department has used the Eberbach Cultural Arts building exclusively for various cultural arts programming for over 30 years. Prior to 2009, the City had paid for all maintenance and capital expenses associated with the building and grounds. This proposed lease agreement will continue to provide for AAPS to cover the operating, maintenance, and anticipated capital expenses associated with the building and grounds during this lease period.
In exchange for the $1.00 annual rent payment, AAPS will be responsible for maintaining the premises in a condition that is satisfactory to the City and will perform numerous routine maintenance activities at its sole cost and expense with respect to the building and grounds. In addition, AAPS will continue to be responsible to provide all utilities, including electricity, heat, air-conditioning, ventilation, water, and sewer services.
Since 2009 AAPS has made annual payments to the City that are kept in a balance sheet designated for maintenance expenses associated with the Eberbach Cultural Arts building. This arrangement has created a funding mechanism whereby the building can be properly maintained. The balance of the Eberbach balance sheet account as of January ...
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