Title
Resolution to Approve Lease Agreement between the City of Ann Arbor and The Regents of the University of Michigan for the Lease of 406 N. Ashley Street - The Community Dental Center (8 Votes Required)
Memorandum
The City of Ann Arbor and the Regents of the University of Michigan wish to sign a new commercial lease agreement for the lease of City-owned property at 406 N. Ashley Street for use as a Community Dental Center. The University of Michigan has leased a portion of the City-owned building since 1981 to provide dental services to low-income Ann Arbor residents at the Community Dental Center.
The current lease renewal agreement will expire on June 30, 2018. However, a portion of the property previously retained for use by the Housing Commission administrative operations was planned to be vacated and the Community Dental Center has requested full use of the building and a revised lease for occupancy of the entire building. The Community Dental Center desires to expand its services to the community by adding a dental clinic to treat special needs patients and support interprofessional education.
As the sole lessee of the building, the University has agreed to assume responsibility for the costs for capital improvements/repairs and maintenance to the building, including the HVAC system ($16,000 to $18,000) and elevator ($50,000 to $60,000), during the lease term. In addition the University has accepted responsibility for payment of costs associated with the upgrade of the building electrical service, if required, to support a new/expanded dental clinic within the building. Snow removal/ice control and lawn care service, will be contracted by the City, and paid for by the University.
The term of the new lease will be for 5 years, terminating June 30, 2021. The University has the option to renew the lease once for an additional 3 year period.
In discussions with the Executive Director of the Ann Arbor Housing Commission, she has indica...
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