COLDWATER, MI (WTVB) – The Coldwater City Council is scheduled to take final action on a resolution and 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 Board of Public Utilities property at 168 Division Street.
The Coldwater Board of Public Utilities Board of Directors approved the short term lease agreement in November 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 January first, 2018.
The Coldwater BPU purchased the former Sauk Trail Trading Post building in the fall of 2016 for $168,000 with the intent 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.
The Agency Board of Directors voted 5-0 last month to end a probe by the Lansing law firm of Fraser Trebilcock into a personnel issue involving General Manager Paul Beckhusen.
The 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 according to Coldwater B.P.U. Director Jeff Budd.
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.
