Governmental unit that rents property for school at above-market rates is still immune fron negligence
Under established Michigan law, governmental units are not immune from negligence in conducting their "proprietary" activities. If an activity is conducted for profit, the government doesn't enjoy the normal defenses for its own negligence. In a recent case, employees of the Caro Learning Center, which leases space from the Caro Center, sued the landlord for negligence in allowing an incarcerated man (who wanted to "kill people") to gain access to their school through lax supervision of him and of the master keys. The man attempted to kill the plaintiffs.
The Court held the Caro Center was still immune from its errors because renting the school space--even at above market rates--was still a governmental function. The individuals whose negligence allowed the attack owed no legal duty to the people assaulted.