Title
Resolution to Recommend Approval of the Fuller Park Parking Lot Land Lease with the University of Michigan (8 Votes Required)
Memorandum
Attached for your review and recommendation 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, 2016. The term of the lease agreement will be for one year, with an option to renew the lease for one additional one-year period. The proposed new lease retains the same language as the expiring agreement with minor operational amendments.
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 at 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 activities and 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 between Memorial Day and Labor Day.
The revenue derived from the lease is recognized in the Parks & Recreation General Fund revenue budget. A 2.5% increase was negotiated in 2015 as part of an administrative renewal. Annual revenue per terms of this lease will be $88,837 - an increase of 28% since 2009.
Exhibit A of the agreement contains provisions for maintenance, security and signage, and specifies the days and times of use. Lot A will be leased to the University from 4:00 am to 4:00 pm Monday through Friday. Lot B (paved lot) will be leased from 6:00 am to 5:00 pm Monday through Friday, beginning the day after Labor Day through the Friday before Memorial Day, excluding holidays. Lot C (unpaved lot) will be leased from 6:00 am to 5:00 pm Monday through Friday, ...
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