The new three-year lease with one two-year renewal option will begin on July 1, 2014. The new proposed rate is $300,862, with a 3% increase each year. Over a five-year lease period, the district will receive over $1.5 million in rent.

Randy Trent, AAPS executive director of physical properties, noted that the tenants have paid for renovations over the past 10 years, while the district pays for maintenance.

As a school building, Trent noted, the property was not very lucrative. When it was last assessed several years ago, it was appraised at $600,000 for the building and the 40 acres of land it sits on. However, if the area becomes more developed in the future, Trent said, it could be an important property for the district to own.

This brief was filed from the board room of the Ann Arbor District Library in downtown Ann Arbor at Fifth and William. A more detailed report of the meeting will follow.