Trustees OK lease agreement with LMC
Dec. 9, 2001
KALAMAZOO -- Western Michigan University-Southwest came one step closer to reality Dec. 7, when Western Michigan University trustees authorized a 75-year ground lease with Lake Michigan College.
Ground was broken on LMC's Benton Harbor campus in August for a 46,000 square-foot building that will house the University's Southwest branch campus. The unique partnership will allow area residents to take their first two years of classes at LMC, complete their bachelor's degrees at WMU and even move on to graduate programs without leaving the area. It marks the first time a Michigan university has built an instructional facility on a community college campus.
The agreement authorized by trustees leases the land to WMU for a period of 75 years at an annual sum of $1. It specifies that WMU will own the building and any improvements made to it throughout the term of the lease.
The lease may be terminated by WMU with 120 days notice, at which time LMC would have the option to purchase the building at fair market value or lease it from WMU for the balance of the term of the lease at a fair market rate. If LMC did not exercise either option, WMU would be permitted to sublease the facility to another tenant, with LMC's concurrence. If LMC wishes to sell the property at any time during the lease, WMU would have first right of refusal to purchase the property.
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