The city and the History Center of Traverse City have signed a temporary "access agreement" that could serve as a detente amid tense discussions about the city-owned Carnegie Building's future. The agreement could also serve as a first step while commissioners work to find a long-term solution for the property. 

The History Center and city staff signed a memorandum of understanding Monday that will allow the nonprofit group to keep their archives and personal property in the building until the end of the year. Staff will be allowed to access the property and work out of their offices, and the organization will not be charged for its occupancy. The History Center's museum side will be closed to the public, but the building will be open for the upcoming Festival of Trains, which the organization helps manage.

“It's an access agreement, not a new lease, so it gives (the city) time to make a decision and makes sure we can take care of our side of things appropriately,” says History Center Acting Executive Director Maddie Lundy.

The building's future has been in question as the History Center's three-year lease expires, and Crooked Tree Arts Center Traverse City seeks to occupy the historic building. Last month, discussions between History Center board members and city staff escalated when the nonprofit gave notice it was terminating its lease agreement with the city. Lundy says the termination was necessary to preserve the organization's nonprofit status and to return maintenance responsibility of the Carnegie Building back to the city – a responsibility board members contend has unfairly financially crippled the History Center.

City Manager Jered Ottenwess counters that the History Center's expectation it could terminate its lease and still remain in the building was a “source of frustration” for staff and commissioners.

“I continue to struggle with the rational for placing blame on the city for the History Center's current situation,” says Ottenwess. “But we're trying to make the best of the situation now and move forward.”

As part of an effort to find a long-term solution for the building, an ad hoc committee of the city commission will consider a proposed scenario suggested by Ottenwess at a morning meeting today. The plan calls for the city to pay for all utilities and maintenance costs for the Carnegie Building going forward, but to recoup half those annual operating expenses – roughly $50,000 – through lease payments from both the History Center and Crooked Tree Arts Center Traverse City. Each organization's payments would be proportional to their building usage.

“It's a rough concept, so we'd still need to work through the specific numbers,” says Ottenwess, who is also recommending commissioners either contract with the History Center to manage the city's Con Foster collection or go through a Request for Qualifications (RFQ) process. “We'd have to identify the source (in the budget) for the city's funding. But the alternative is no one is using the building and no revenue is generated. I don't think there's any getting around the city incurring additional costs for the Carnegie Building."

If the ad hoc committee supports Ottenwess' proposed three-way cost sharing arrangement, specific agreements with each entity could be hammered out in the coming weeks and submitted to the city commission for approval. Aware of time pressures on the History Center's part, Ottenwess says the city could potentially extend the organization's access agreement beyond the first of the year if the process stretches past that point. “If (having them in the building) is the direction we're moving in, I don't think that's an issue,” he says.

While both the History Center and Crooked Tree have expressed some concerns about security and space overlap/usage in a co-leasing situation, the groups have also stated a willingness to work together. Lundy says her primary focus is finding a long-term agreement that addresses the financial realities facing her board. “One of the fears I have is I don't want to go through this again in three years,” she says. “I'm happy the city is moving on this. I think the community wants to see us in the building. I just hope it works.”