Title
RESOLUTION TO APPROVE OFFICE LEASE WITH KERRYTOWN SHOPS OF ANN ARBOR, INC.
Memorandum
Attached for your review and approval is a resolution to approve a Lease Agreement with Kerrytown Shops of Ann Arbor, Inc. for relocation of DDA offices to 415 N. Fifth Ave.
The DDA has occupied its current office space at 150 S. Fifth Ave. since July 2011, the DDA had four permanent employees at this time. The DDA now employs nine permanent staff members. DDA has outgrown its current space.
The new office space is located on the second floor of the Luick Building at 415 N. Fifth Ave. This space contains 3,765 square feet, satisfies all DDA requirements, is competitively priced, proximate to City Hall, and places the DDA amid the Kerrytown small business community.
Office lease comparison between 150 S. Fifth and 415 N. Fifth as follows:
Square footage: 3,189 vs. 3,765 (18% increase)
Annual cost per SF: $31.89 vs. $29.50 (-7% decrease)
Annual cost: $101,709.48 vs. $111,067.50 (9% increase)
Body
Whereas, The DDA has leased its current 3,189 square feet of office space at 150 S. Fifth Avenue, Suite 301, since July 2011;
Whereas, DDA staff size has grown significantly from four permanent employees in 2011 to nine permanent employees in 2025;
Whereas, Additional space is necessary to accommodate increased staff size;
Whereas, Office space options within the DDA boundary were explored and 3,765 square feet of office space at the Kerrytown Market & Shops was found to be competitively priced at $29.50 per SF including all utilities and build out costs and met all DDA requirements;
Whereas, The DDA attorney has reviewed a lease for this location and provided feedback on its terms;
RESOLVED, The DDA Board approves the terms of the proposed lease with Kerrytown Shops of Ann Arbor, Inc. for a ten-year term beginning July 1, 2025, and ending June 30, 2035;
RESOLVED, The DDA Board approves a least rate of $111,067.50 for the first year of the lease and a 3% annual...
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