COLDWATER, MI (WTVB) – With the Michigan South Central Power Agency no longer using the majority of the north side of the building that is owned by the Coldwater Board of Public Utilities at 168 Division Street, the CBPU Board of Directors approved a request from Director Jeff Budd Tuesday to modify the building’s lease.
In addition, the CBPU will reimburse the MSCPA for the costs of the furniture, telephone system, and other costs related to the building. According to Budd, since the CBPU initially paid 40 percent of the costs of these items, the remaining 60 percent paid by the other members would be over $105,000.
The lease with the MSCPA is currently month to month. Budd proposed that until the future of the MSCPA is solidified, the rent would be lowered to $900 a month for the use of one office and the majority of the north storage area.
The MSCPA would still be able to use the board room for monthly board meetings, if needed.
The modification of the lease would be effective November 1, 2019 pending approval by all involved parties.
Budd said the rent would include all utilities, phone and other costs associated with the building.
The CBPU board approved a short term lease agreement with the agency nearly a year ago which called for a rent payment of $6,500 a month to the CBPU..
The former Sauk Trail Trading Post building was purchased by the CBPU almost three years ago for the purpose of putting in office space for the agency and the CBPU’s technology center.
But the purchase led to controversy and bitter feelings between agency members over rising costs and what some felt was a lack of transparency. Eventually, General Manager Paul Beckhusen and the Agency worked out a separation agreement which was approved by the Agency Board of Commissioners last month.
