"Cowardice asks the question...is it safe? Expediency asks the question...is it politic? Vanity asks the question...is it popular? But conscience asks the question...is it right? And there comes a time when one must take a position that is neither safe, nor politic, nor popular but one must take it because it is right." ~Dr. Martin Luther King

Friday 10 February 2012

The Mystery Of The Lease

Anonymous has left a new comment on your post "You Were Asking":

Let's cut to the chase on this damn thing. Every time you mention that agreement, objections appear. You have asked countless times to see the agreement and I don't know if it has ever been produced. If there is no fire, why do flares go up when you mention that lease ?
This is a new council and they seem to be catching up - some will support you in your quest. It is a rental agreement, not a missile defense system. Let's get rid of this albatross too. It can't be all that bad.

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Eviction of the parks department and cessation of storage  for the town   made room for a new armouries .

There had been   enquiries about leasing the facility from the private sector after  Power Stream moved out before their lease was up.There was no penalty. We got thirty days notice and an empty building.

There was no publication of  availability for lease. No invitation for best offers.

It was a scramble in the  weeks prior to the election.

Council was informed  behind closed doors of successful negotiation of  a tenancy .Approval of the Minister of National Defense was pending.
On the basis of an election pending, I requested our  Honorable Member Lois Brown to ask the MInister to withold approval until the new council was elected.

The member murmured  a reference  to the Municipal Act and that told me where I stood there.

Days later,the Mayor triumphantly announced Ministerial approval.

The deal was done. I had my doubts.

The following March during budget discussion, I  inquired of  the treasurer where  rental revenue for  the building would  show.  He replied there had been none until February 1st.2011.

I thought the rent was $139.000. It was actually $131.000. More than $200,000 of our money was spent to make the building ready for  the tenant . A sprinkler system among other things had to be installed.

The capital construction budget had a couple of hundred thousand in it in 2011 for further works and again this year, yet  another couple of hundred thousand. I reckon our  money being spent on the building will absorb  five years of rent.  If in fact, we ever do see any revenue versus expenditures. Because we are the landlord don't you know and responsible for  maintenance.of our property.

The building is finally occupied. Lights were on  after  eleven when I came home from Tuesday's council meeting.

By  logic,  the day the first rent cheque is paid a lease starts.  According to the town treasurer, the cheque was not received until February 1st.2011.

Now you  decide whether the town's interest was  represented in the machinations. .

I have spoken of the issue to this council.

There's little  interest .

3 comments:

Anonymous said...

Could be wrong but I think that at one of the Council's earlier meeting. Mayor Dawe said he would look into the rental agreement and report back. If so, his 'report' is well over-due. Would it be impolite to just remind him ?
That meeting might even have been televised.

Anonymous said...

It is the job of Councillors to be aware of anything that takes or gives revenue to the town. A taxpayer can ask about an item and expect an answer. Surely there must be a couple of Councillors who are ' curious '?

Anonymous said...

"It is the job of Councillors to be aware of anything that takes or gives revenue to the town. A taxpayer can ask about an item and expect an answer. Surely there must be a couple of Councillors who are ' curious '?"

Okay... the building was being used by the Town before. Inbound revenue $0 - outbound cash > $0.
Now the tennants are in, Inbound revenue > $0 - outbound cash a one-time > $0 but should no longer be the case.
Which is a better situation to be in? I think the latter.

The deal is done - move on to the next MorMac decision we need to reverse, this term will be up soon.