Title
Resolution to Terminate Covenants and Restrictions and an Easement in a Portion of the Michigan Theater Property (8 Votes Required)
Memorandum
Approval of this resolution releases certain covenants and restrictions, including a right of reverter, and an easement for public utilities in a small portion (approximately 127 square feet) of the Michigan Theater property, which the City reserved when it quitclaimed the property to the Michigan Theater Foundation in 2007.
The property was conveyed to the Michigan Theater Foundation (a) subject to the City's reservation of easement rights for public utilities, including emergency access to operate, repair, replace and maintain any public utilities in, on and over the property and (b) subject to certain covenants, restrictions and interests in favor of the City, including use, height, and maintenance covenants and requirements for the property and a right of reverter.
In connection with a transaction with a neighboring property owner, the Michigan Theater Foundation has agreed to sell and convey a small portion of the property free and clear of these restrictions. The portion of property is a small triangular piece on the eastern edge of the parcel that contains no building or public infrastructure. The Michigan Theater Foundation has indicated that this transaction will result in revenue for the Foundation for an otherwise unused piece of the property and they have therefore requested this termination.
The termination is contingent upon City approval of a pending administrative land division, which is currently under review by City staff. The termination retains all of the City's rights in the remainder of the Michigan Theater property, including all of the buildings and existing infrastructure. The termination also contains a provision that if the land is not conveyed within a year from the date the termination is executed, the covenants and restrictions and easement will be restored as to the small portion of...
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