#3 Lease extension for Tallman House
Community Development Department Memorandum
December 1, 2009
TO: City Council
FROM: Bradley Cantrell, Community Development Director
SUBJECT: Lincoln-Tallman Property Lease Renewal – Lease Amendment No. 8
Summary
The Community Development Department has prepared a one-year lease extension for
the Lincoln-Tallman House with the Rock County Historical Society (RCHS) with the
reduced operating subsidy of $45,000 and an additional $4,400 for grounds
maintenance as approved in the 2010 adopted City budget. The lease agreement
provides for an extension of the lease for an additional two year period upon approval of
an acceptable business plan by the City Council. In addition, language has been
included in the lease to restrict the use of funds for expenses associated with the
maintenance and operation of the Lincoln-Tallman House and grounds as was provided
for in the 2008 lease.
City Manager’s Recommendation
The City Manager supports adoption of a one-year lease extension at this time with a
provision for an extension for an additional two years contingent upon approval of an
acceptable business plan by the City Council.
As we have been evaluating the parameters for a business plan, I believe that the
$45,000 should be the minimum spent on an operating contract this year.
Suggested Motion
Move to adopt Renewal Lease Agreement No. 8 for the Lincoln-Tallman property.
Request
In 1950, George and Alice Tallman donated the Tallman House to the City of Janesville
to be used and maintained permanently as a public museum. The donation allowed the
City to lease the property to the Rock County Historical Society (RCHS) to maintain and
operate the property. The Tallman House has been leased to the RCHS since 1950.
The Lincoln-Tallman House lease currently encompasses the entire grounds located at
440 N. Jackson (see attached map). This property includes the Lincoln-Tallman house
museum, the Carriage House, and the Wilson-King Stone House. Currently the Lincoln-
Tallman House is utilized primarily as a House Museum for walking tours and has some
record storage in the basement. The Carriage House was formally used for storage, but
is no longer due to its deteriorating structural integrity. The Wilson-King Stone House
currently houses the RCHS archives.
During the 2010 budget preparations, the City Council reduced the City subsidy to the
Tallman House to $45,000 with an additional $4,400 for grounds maintenance. In
October the City Manager appointed an Ad Hoc Committee to assist in the preparation
of a business plan and programming plan for the Lincoln-Tallman House and grounds.
In addition the Committee was given the task to review the structures report and make
recommendations to the City Council on repair options, improvement priorities and
recommendation on the facilities. The Committee was given 6 months to report back to
the City Council with its findings.
The Rock County Historical Society (RCHS) has requested that the City Council
consider a three year lease with them for the museum operation and have further
requested that the funding level remain unchanged over that three year period. They
have indicated that they have recently hired a new executive director and would like a
slightly longer period of time to have a stable city subsidy in order for the director to
make any necessary adjustments. The Administration is supportive of a three year
lease provided an acceptable business plan for the Lincoln-Tallman House is approved
by the City Council. The Administration believes that the Ad Hoc Committee’s efforts in
assisting in the business plan preparation will lay a solid foundation to increase the use
of this historic resource.
The current lease began on January 1, 2009 and is set to expire on December 31,
2009. In 2009 the Lincoln-Tallman subsidy was $50,000 for operations and an
additional $4,400 for grounds maintenance.
The City Administration is recommending that the City Council extend the lease
agreement with the RCHS for one year, starting January 1, 2010 and expiring on
December 31, 2010 with an option of extending the lease for an additional two years at
the same lease rate provided the City Council approves an acceptable business plan.
This lease will reduce the operating subsidy to $45,000 and provide an additional
$4,400 for grounds maintenance as approved in the 2010 adopted City budget. The
lease agreement No. 8 has been written to provide for up to a two year extension of the
lease to December 31, 2012 at the same city subsidy if the City Council approves an
acceptable business plan.
LINCOLN-TALLMAN PROPERTY LEASE AGREEMENT
AMENDMENT NO. 8
THIS AMENDMENT AGREEMENT
is made and entered into as of December 14, 2008, by
and between the City of Janesville, a Wisconsin municipal corporation (“Janesville”) and the
Rock County Historical Society, a Wisconsin corporation operating under Section 44.03 Wis.
Stats. As a non-profit, non-stock organization (“RCHS”).
WHEREAS,
Janesville and the RCHS entered into a Lease Agreement on or about
December 2, 1987 (“Lease”) for the Tallman Homestead (as defined therein), and;
WHEREAS,
Janesville and the RCHS amended the Lease on or about May 9, 1991,
effective January 1, 1991 (“Amendment No. 1”).
WHEREAS,
Janesville and the RCHS amended the Lease on or about December 31,
2000, extending the Lease to July 30, 2001 (“Amendment No. 2”).
WHEREAS,
Janesville and the RCHS amended the Lease on or about July 31, 2001,
extending the Lease to December 31, 2001 (“Amendment No. 3”).
WHEREAS,
Janesville and the RCHS amended the Lease on or about April 2, 2002,
extending the Lease to December 31, 2002 (“Amendment No. 4”).
WHEREAS,
Janesville and the RCHS amended the Lease on or about January 1, 2003
extending the Lease to December 31, 2007 (“Amendment No. 5”).
WHEREAS,
Janesville and the RCHS amended the Lease on or about January 1, 2008
extending the Lease to December 31, 2008 (“Amendment No. 6”)
WHEREAS,
Janesville and the RCHS amended the Lease on or about January 1, 2009
extending the Lease to December 31, 2009 (“Amendment No. 7”)
NOW, THEREFORE,
for valid consideration, the receipt, adequacy, and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows.
1. The above recitals are true and correct.
2. The term of the current Lease, as amended above and herein, is hereby extended
commencing on January 1, 2010 and terminating on December 31, 2010.
3. The City’s operating subsidy to the RCHS for the operation of the Lincoln-
Tallman House will be $45,000 and $4,400 for grounds maintenance as approved
by the City Council in the 2010 City budget.
LINCOLN-TALLMAN PROPERTY LEASE AGREEMENT
AMENDMENT NO. 8
Page 2
4. The City’s $45,000 of subsidy to the RCHS shall only be used for the Tallman
Homestead described in the lease as property including the Lincoln-Tallman
House, Lincoln-Tallman Carriage House and the Stone House. The purpose of the
funds shall be for expenses associated with operating and maintaining the
property as the “Lincoln-Tallman Museum”.
5. If the business plan is submitted to the City Manager during the term of this lease
agreement and if the City Council finds the business plan for the Lincoln-Tallman
House and Grounds acceptable by approving it in open session. The lease
agreement will be extended at the current lease rate for an additional two years or
until December 31, 2012.
6. All other terms, promises, obligations, conditions, and benefits set forth in the
current Lease as amended, except as expressly and specifically amended or
modified by this Amendment No. 8, are each hereby reiterated, affirmed, and
incorporated herein unchanged and shall remain in full force and effect.
IN WITNESS WHEREOF,
the parties hereto have executed this Amendment as of the
date first set forth above.
CITY OF JANESVILLE ROCK COUNTY HISTORICAL SOCIETY
_____________________________ ________________________________________
By: Eric J. Levitt By: Joel Van Haaften
City Manager Executive Director
_____________________________ ________________________________________
By: Jean Ann Wulf By: Richard Ellingson
City Clerk-Treasurer President
Approved as to form:
_____________________________
Wald Klimczyk, City Attorney
Shared/Tallman House Lease Amendment No 8 112009.doc