Despite losing money on the deal, Coldstream won’t be kicking some of their friends outdoors.
A new lease agreement has been drawn up, to be negotiated with the Vernon Friends of the Library, which rents out the old fire hall building.
“There was an appetite to see it continue,” said Trevor Seibel, Coldstream’s chief financial administrator, of both parties.
But there are a few changes in the agreement.
One is to include a two per cent annual increase in the lease rent – up from the current lease rate of $400 a month.
Coldstream says the annual increase is necessary after reviewing its numbers and discovering increased operating costs over the years plus a net operating loss with the building of approximately $400 per year.
“We could get a lot more revenue for it,” said Michael Stamhuis, chief administrative officer.
The other change is to decrease the lease term from three years to one.
“By having a year-to-year lease it provides a little more flexibility for council,” said Seibel.
“But still ensuring the Friends of the Library has some stability.”
The Friends of the Library could not be reached for comment.
