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Council extends long-running lease with Blue Water Services for wastewater parcel
Summary
Council approved an extension of the lease to Blue Water Services for tax parcel 312410 (TP136), continuing decades-long occupancy and noting the city could sell the land for more than cumulative lease revenue but chose to preserve options for the wastewater utility.
The Kewaunee Common Council on Jan. 13 voted to extend a long-standing lease with Blue Water Services for tax parcel 312410 (TP136), the site of a wastewater facility adjacent to Blue Water’s other parcels.
Staff told the council the lease arrangement dates to the early 2000s and is renewed in three-year terms; the original annual rent was very low and had been increased incrementally over time. Staff summarized land-assessment and tax figures and said selling the property at assessed value would produce a larger one-time payment than cumulative rent collected since 2004, but keeping the lease preserves future operational flexibility for the wastewater utility.
"If the city were to sell the property at the assessed value, we would make more money on that single transaction than the sum total of all yearly rents collected from Blue Water Services since 2004," Keith said.
One council member disclosed employment with Blue Water and recused from discussion as appropriate. Council then moved and approved the lease extension; the motion carried with recorded abstentions during roll call.
Staff noted options remain, including selling the parcel in the future, but recommended extending the lease now to remain current with the long-running arrangement while the city evaluates long-term plans for the parcel.
