[nfbmi-talk] lease question for bep wharehouse

joe harcz Comcast joeharcz at comcast.net
Thu Dec 16 10:21:34 CST 2010


This is from the Michigan Administrative board circa July 2010 for a lease for BEP wharehouse. My question on all of these is how can they claim they are 100 percent federally funded? Are they funding these things through RS and MCB VR monies?

Joe Harcz

 ADDENDUM TO LEASE FOR PRIVATE PROPERTY 

 4. 

 DEPARTMENT OF ENERGY, LABOR AND ECONOMIC GROWTH, LANSING - 

Addendum #2 to Lease#11175-2006, between Stevens Van Lines, Inc., a 

Foreign Entity, 527 Morley Drive, P.O. Box 3276, Saginaw, Michigan 48605, as 

Lessor, and the State of Michigan by the Department of Management and 

Budget for the Department of Energy, Labor and Economic Growth, as Lessee, 

for 3,000 square feet of space located at 3000 Sanders Road, Lansing, Michigan 

48917. This Addendum provides for a decrease of 940 square feet for a revised 

total of 3,000 square feet, reduce the rent accordingly and add one two-year 

renewal option. This Addendum is effective upon obtaining State Administrative 

Board approval and required signatures and continues to the termination date of 

the Lease, or any extension. The annual per square foot rental rate for this 

space beginning July 1, 2010, or upon substantial completion, is $4.90 ($1,225 

per month). This Lease contains one 2-year renewal option with an annual per 

square foot rental rate of $5.16 ($1,290 per month). This Lease contains a Standard cancellation clause with 90-days notice. The Attorney General has 

approved this Addendum as to legal form.  Purpose/Business Case 

This lease enables the Commission for the Blind and their Business Enterprise Program 

to store supplies and equipment in a convenient location at a reasonable expense. This 

program is a unit of the Department of Energy, Labor and Economic Growth. 

Benefit 

The Business Enterprise Program needs storage space for their supplies and 

equipment. The location of the storage facility is convenient and the costs are 

reasonable, the cost savings realized by downsizing the square footage is $16,864 over 

the life of the Lease. 

Source of Funds 

100% Federal Funds 

Commitment Level 

Two- year lease and one two-year renewal; however, this Lease contains a Standard 

cancellation clause with 90-days notice. 

Risk Assessment 

Non-approval of this Addendum will hinder the Department from being able to store 

supplies and equipment in a convenient location and would incur moving costs if they 

needed to relocate. 

Zip Code 

48917 



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