Title
Resolution to Approve Fuller Park Parking Lot Land Lease with the University of Michigan (8 Votes Required)
Memorandum
Attached for your review 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, 2024. The term of the new lease agreement is proposed to be for five years, with an option to renew the lease administratively for two additional two-year periods. The proposed new lease includes a few changes from the expiring one:
* Due to the University switching Lot A back to yellow permit parking, the City and the University have agreed that the annual lease payment will be reduced by 64% which matches the increase agreed upon in the last agreement.
* The City will reserve more public use for Lot B (3 weeks prior Memorial Day versus 2 weeks in the prior lease) to accommodate opening Fuller pool earlier. The City and University have agreed to increase the rental rate of Lot B by 1.5% to offset that increased public use for the first year.
* The University agrees to a 3% rental increase for Lot C.
* Total annual revenue for the first year is $109,768.00, which will be a reduction from $137,332.00.
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 a 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 visitors and the hours that the lots are available for University use is determined with this in mind. For example, Lot B, nearest the pool, will be exclusively public use during the summer and majority public use for the three weeks prior to Memorial Day and the two weeks after Labor Day. As Parks staff have extended ...
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