Kettering schools to end 7-year business park lease with city, citing high costs

Credit: FILE

Credit: FILE

KETTERING — A seven-year lease Kettering schools signed with the city earlier this year at Kettering Business Park is expected to be terminated due to renovation costs.

Estimated renovation costs came in at more than $1 million and the project was budgeted at $300,000, Kettering City Schools Spokeswoman Kari Basson said.

The school district wanted 18,625 square feet of a building Kettering Business Park for warehousing needs, its Business Services Director, Jeff Johnson, said in an email.

But “after working on a renovation scope-of-work, it was determined that the cost to renovate the space exceeded our original forecasted budget,” Johnson said.

A termination agreement set to be considered by board of education tonightcites “current economic conditions.”

“The schools notified us early enough in the process that we had not collected any rent nor had we incurred any expenses. We mutually agreed that the termination of the lease was the best course moving forward,” City Manager Mark Schwieterman said in an email.

The termination agreement on the board’s agenda states it will be retroactive to Oct. 31.

The lease called for Kettering schools to rent space from the city for $30,000 a year, district records show.

The city owns nearly 28 acres at the 120-acre Forrer Boulevard business park, which houses major employers Alternate Solutions, Amazon and Kettering Health, according to Kettering records. City land includes the Kettering Municipal Court building.

The agreement approved last spring called for the school district to “invest and make improvements to redevelop” the space.

“The city was aware of our intent to use the space, but no official plans were ever submitted,” Johnson said.

Payments for the leased space were not to start until the school district made improvements to the facility, he said.

“No improvements or payments have been made and the lease is being terminated at no cost to the district,” Johnson said. “The school never occupied the space so it’s still in its current condition.”

The lease agreement stated that “either party may terminate this lease by giving 12 months advance written notice of termination to other party.”

The termination agreement, however, states that it “represents the complete understanding between the parties and supersedes all prior written or oral negotiations, representations, warranties, statements or agreements between the parties.”

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