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#1 Tallman House Lease, Operations & Property Community Development Department Memorandum August 11, 2010 TO: City Council FROM: Bradley Cantrell, Community Development Director SUBJECT: Action on Lease Amendment No. 9 to the Lease between the City of Janesville and the Rock County Historical Society (RCHS) for the Lincoln- Tallman Property. Summary The Community Development Department has prepared a two-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. Last year upon request from the Rock County Historical Society the Council discussed a multi-year lease extension. The Council included language in the 2010 lease that provided for a two-year lease extension if during the term of the lease agreement an acceptable business plan was submitted to and approved by the 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 2010 lease. City Manager’s Recommendation The City Manager believes that the RCHS has met the conditions of Amendment 8, which allows for Amendment 9 and the two year extension. Suggested Motion Move to adopt Renewal Lease Agreement No. 9 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. In the preparation of the 2010 lease the Rock County Historical Society (RCHS) 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 was supportive of a three year lease provided an acceptable business plan for the Lincoln- Tallman House was approved by the City Council. th On April 26 the Ad Hoc Committee reported back its findings to the Council. The Council discussed the need for additional public input into the business plan and conditions report. Following discussion a motion to accept the 2010 to 2014 Business plan and Conditions report was approved. Since Council action, the Ad Hoc Committee has attempted to obtain additional public input by hosting a public open house at the th Tallman House which was held on July 17. Approximately 20 people attended the open house, (Attached are the comments which were received). In addition, the Committee provided information at the Tallman Art Festival regarding the condition of the House at which approximately 70 people received an informational flyer. The Administration believes that the Ad Hoc Committee’s effort in preparing a business plan has laid a solid foundation to increase the use of this historic resource. The City Administration is recommending that the City Council extend the lease agreement with the RCHS for an additional two years, starting January 1, 2011 and expiring on December 31, 2012. The operating subsidy will remain the same as the current lease rate which is $45,000 for operations and provide an additional $4,400 annually for grounds maintenance. Lincoln Tallman Open House Saturday, July 17 9:00 a.m. Summary of Comments Do you have any suggestions or comments on the condition of the House and/or ideas for repair? ? I very much want to see exterior preservation done first. ? Interior is attractively presented. Exterior needs some major repairs. Using local craftsman, when possible, is a good plan to build community support for project and to reduce costs. ? A lot of churches require volunteer work for high school age before confirmation. Post at churches that you would like some student help. ? Use local firms/workers for the work as much as possible. Working from top down is smart. What suggestions would you have for events or activities in the House, carriage barn or on the grounds? ? Music nights, haunted nights (talk of the history who has lived & died here). ? Quester meetings, historic presentations, weddings. ? Small group concerts (chamber music, house concerts, etc.) graduation for small groups like Montessorri, receptions, meetings. ? Penny wars at schools. ? Small musicals in the piano room(s) using main hall for seating. Small conferences in back tea room. What events or activities that you have learned about today would you support or not support? ? I would support all levels as we don’t get to have this house again. ? Greater use of Tallman House and carriage barn when restored. ? I’d support all of them. Would you be willing to contribute either monetarily for House repairs or assist with events or activities in the House or on the grounds? ? Yes ? Yes ? Yes, in some way. ? Yes, I think that if everyone donates a small amount it all adds up. ? Yes ? Yes, one year from now, in some way. Other comments: ? Everyone was really informative. ? The grounds will need landscaping. ? We need a Friends of Tallman House group to raise funds for the restoration of the exterior and an endowment fund for continued maintenance. ? This was a good thing to do, even if the turnout was small. LINCOLN-TALLMAN PROPERTY LEASE AGREEMENT AMENDMENT NO. 9 THIS AMENDMENT AGREEMENT is made and entered into as of August 23, 2010, 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”) WHEREAS , Janesville and the RCHS amended the Lease on or about January 1, 2010 extending the Lease to December 31, 2010 (“Amendment No. 8”) 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 for two years commencing on January 1, 2011 and terminating on December 31, 2012. 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 2011 and 2012 City budget. LINCOLN-TALLMAN PROPERTY LEASE AGREEMENT AMENDMENT NO. 9 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. 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. 9, 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: Charles Rydberg City Clerk-Treasurer President Approved as to form: _____________________________ Wald Klimczyk, City Attorney 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