Board approves $1,000-a-month lease, orders collection of past rent from utilities

The Board of Public Works and Safety on July 21 approved a recreated lease between the City of Madison and Madison Utilities that sets rent at $1,000 per month and authorizes collection of unpaid rent dating back to 2022. The board approved the agreement after a staff presentation describing the document as a historical lease that was recreated when the original, pre-digital record could not be located.

Director of Finance Annie McGee told the board the lease mirrors the historical arrangement and that the utilities “have agreed to pay the same amount.” McGee said payments stopped in April 2022 and the new agreement includes a one-time collection to recover unpaid rent for 2022, 2023, 2024 and seven months of 2025, which she described as an amount of approximately $40,000.

The board motioned and voted to approve the lease as presented. No member of the public objected during the meeting, and no amendments to the lease terms were proposed in the public record.

Why it matters: the lease formalizes occupancy terms for utility office space in a city-owned building first leased when the city acquired the property in the early 1990s, clarifying payment obligations going forward and recovering several years of missed revenue.

Background and details: McGee said the building purchase occurred in 1992 or 1993 and that the prior lease likely predates digital records. She described the recreated lease as “straightforward and simple” and confirmed the utilities will continue paying $1,000 monthly. City staff indicated the recreated lease will be stored digitally going forward.

Next steps: the board approved the lease and staff will proceed with collecting the back rent and implementing the recreated lease terms.