ADRIAN — The Adrian City Commission has approved a confidential settlement agreement with Housing Help of Lenawee, closing the chapter on a long-running lease dispute tied to the former Adrian Inn property.
The resolution passed unanimously on Monday following a closed-session review process. The agreement was not disclosed publicly until after the vote — a legal option available to municipalities when contract terms involve potential legal exposure.
Under the finalized settlement, the City of Adrian will pay Housing Help $15,000, along with more than $20,000 in unpaid utility costs. Those expenses include gas, electric, water, and phone charges accrued after October 5, 2024 — the date when Housing Help vacated the property but before full lease termination was resolved.
The dispute stems from a three-year lease agreement signed in 2022, which was terminated early in September 2024 under a mutual surrender agreement. That agreement later led to disagreement over responsibility for utility payments after the facility was vacated.
The new settlement not only resolves the financial dispute but also terminates all legal obligations and rights tied to the Adrian Inn lease. Both parties also agreed to execute any necessary paperwork to formally release any remaining claims or leasehold interests in the property.
According to the terms, the agreement does not represent an admission of wrongdoing by either party.
City officials confirmed that the settlement will be made available to the public and can be requested through the Adrian City Clerk’s Office.
The resolution is expected to help clarify future roles between the city and service providers addressing housing insecurity in Lenawee County. No details were provided Monday about whether future partnerships or support programs are being considered.