COLDWATER, MI (WTVB) – The Board of Directors for the Coldwater Board of Public Utilities will be asked Tuesday to approve a short term lease agreement with the Michigan South Central Power Association that would allow the MSCPA to use a portion of the CBPU property at 168 Division Street.
The MSCPA approved the agreement during their November 1, 2018 board meeting. The deal calls for a rent payment of $6,500 a month to the CBPU that would be retroactive to January 1, 2018.
CBPU Director Jeff Budd says this agreement provides a short term solution until a longer term decision can be made by the MSCPA board to either purchase or enter into a longer term agreement.
According to Budd, the proposed $6,500 a month rent payment equals $16 per square foot for the 4,880 feet currently being occupied by the MSCPA. The building has a total of 8,000 square feet.
Budd says there is a three percent annual rent escalation clause and a 12 month lookback window to recalculate the lease if a long term agreement is entered into.
