City Delays Parking Lease with University

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A two-year extension on a University of Michigan lease of three city of Ann Arbor parking lots at Fuller Park has been delayed by the city council.

The council’s unanimous vote to postpone consideration of the lease agreement came at its Aug. 18, 2014 meeting, after a brief discussion. The council will take up the item again at its first meeting in October – on Oct. 6. The lease came to the council with a recommendation of approval from the park advisory commission, given at its July 15, 2014 meeting. The council now wants PAC to take another look at the agreement.

Fuller Park, University of Michigan, Ann Arbor park advisory commission, The Ann Arbor Chronicle

Map of parking lots at Fuller Park that are leased to the University of Michigan.

The existing lease expires on Aug. 31, 2014. Given that the lease is expiring, Jane Lumm (Ward 2) asked about the implications of postponing until October. Mayor John Hieftje indicated that the lease renewal came to the council later than it should have.

The three lots are: (1) the parking lot south of Fuller Road, next to the railroad tracks (Lot A); (2) the paved parking lot north of Fuller Road at Fuller Park (Lot B); and (3) the unpaved parking lot north of Fuller Road at Fuller Park (Lot C). The lots are used by UM during restricted hours.

The city has leased Lot A to UM since 1993. Lots B and C have been leased since 2009.

Annual revenue of this lease would be $78,665, and will be included as part of the parks and recreation general fund budget. [.pdf of proposed lease agreement] [.pdf of staff report]

The hours that UM can use these lots are stipulated in the agreement:

  • Lot A: 4 a.m. to 4 p.m. Monday through Friday.
  • Lot B (paved lot): 6 a.m. to 5 p.m. Monday through Friday, beginning the day after Labor Day through the Friday before Memorial Day, excluding holidays.
  • Lot C (unpaved lot): 6 a.m. to 5 p.m. Monday through Friday, excluding holidays.

At PAC’s July 15 meeting when the lease was recommended, parks and recreation manager Colin Smith noted that the revenue from these three lots is significant for the parks and recreation operating budget. The current agreement – which was approved by the council in 2009 and extended by two administrative renewals – is essentially the same as the agreement that will expire, Smith told PAC.

The main purpose of the lots is for the parks, Smith explained. That’s reflected in the hours when UM can use the lots – on weekdays, prior to 4-5 p.m. The outdoor pool and soccer fields don’t need the quantity of parking during the winter or off-season. “It’s an asset within the parks department that we can either have sit there, or we can lease it for a significant amount of revenue that obviously helps us provide other programs,” he said. If the city doesn’t lease those parking lots, “I am absolutely certain that people will park in it anyway,” Smith added.

Two residents who had raised concerns about the lease at PAC’s July 15 meeting – Rita Mitchell and George Gaston – also addressed the city council on the same issue on Aug. 18. Their commentary is reported in The Chronicle’s live updates of that meeting.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.