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File #: 19-0229    Version: 1 Name: 3/4/19 AAPS Agreement for Eberbach
Type: Resolution Status: Passed
File created: 3/4/2019 In control: City Council
On agenda: 3/4/2019 Final action: 3/4/2019
Enactment date: 3/4/2019 Enactment #: R-19-082
Title: Resolution to Approve an Amended Five-Year Lease Agreement with the Ann Arbor Public Schools for Eberbach Cultural Arts Building (8 Votes Required)
Attachments: 1. Eberbach agreement 2019.pdf, 2. 190201 Memo - Appraisals.pdf
Title
Resolution to Approve an Amended Five-Year Lease Agreement with the Ann Arbor Public Schools for Eberbach Cultural Arts Building (8 Votes Required)
Memorandum
Attached for your review and approval is an amended 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. Per the lease agreement, the 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 amended lease agreement will continue to provide for the 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, the 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, the Ann Arbor Public Schools will continue to be responsible to provide all utilities, including electricity, heat, air-conditioning, ventilation, water, and sewer services.

Since 2009 the 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 1, 2019 is $52,475.00. If the fund balance as of March 1st of e...

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