The Coldwater City Council introduced an ordinance Monday night which covers a short term agreement that allows the Michigan South Central Power Association to lease the northern part of the Coldwater BPU property at 168 Division.
The Coldwater Board of Public Utilities Board of Directors approved the short term lease agreement last week after it had earlier been approved by the MSCPA Board.
It calls for a rent payment of $6,500 a month to the CBPU that would be retroactive to last January first.
The Coldwater BPU purchased the former Sauk Trail Trading Post building over two years ago at a price of $168,000 for the purpose of putting in office space for the Agency and the CBPU technology center.
But some MSCPA members raised concerns about the cost of the building and what they felt was a lack of transparency.
CBPU Director Jeff Budd says this agreement provides a short term solution until a decision can be made by the MSCPA board to either purchase or enter into a longer term agreement.
Budd says there is a three percent annual rent escalation clause and a 12 month look back window to recalculate the lease if a long term agreement is entered into.
In other business, the Council formally approved the sale of a home at 31 Pelton Avenue that was purchased by the City of Coldwater during a 2016 tax sale and later rehabilitated. City Manager Keith Baker says an offer of $138,500 had been made on the three bedroom, two bathroom home. After closing costs, Baker says the city will net $132,000. The closing was scheduled to take place on Tuesday.
