Urbana board hears first read on two‑year lease extension with MTD for central office

District staff presented a one‑page first read of a proposed lease extension with the Champaign‑Urbana Mass Transit District (MTD) that would extend the district’s central office lease at 11:01 East University Avenue for two years with options for additional one‑year extensions.

Paul (surname not provided) explained MTD drafted the agreement and that the extension preserves the district’s current space while MTD advances a planned downtown project. "We are kind of at the mercy of having a home," Paul said, describing the extension as a short‑term option while the transit district proceeds with the NEPA and design processes for its downtown development.

Staff told the board MTD will place a portion of rent into an escrow account (50 percent of the rent contributions beginning in year three of the current lease), and the extension includes modest CPI‑based rent increases (staff said MTD has applied a 2 percent annual increase in prior years). The district said the arrangement keeps the district near campus and on bus lines while preserving an option to join a future downtown project with MTD and other public entities.

Board members asked clarifying questions about timeline and alternatives; staff said they had evaluated other spaces but no viable downtown alternative is available before the current lease ends on June 30, 2026. The lease extension was presented as a first read and will be brought back for board action at the April 21 meeting.

Why it matters: The lease determines the district’s central office location and near‑term occupancy costs; the extension preserves continuity of operations while the larger downtown project proceeds but creates an additional near‑term financial commitment.

What’s next: Final action will be on the April 21 agenda; staff said they will return with the finalized lease extension for board approval.