It appears Guelph-Eramosa Township and the Rockwood Nursery School have come to a solution.
Earlier this year the township informed nursery school officials it either needs more money from them or it needs another tenant at the old town hall to help cover costs.
And last week council unanimously approved a new schedule that will see the nursery school’s monthly rent rise 164% – from the current $500 to $1,321 – by 2013.
Parks and Recreation Manager Robin Milne said the nursery school’s rent has remained $500 a month for what he guessed was at least 10 years.
Earlier this year councillor Corey Woods said the township was losing about $15,000 every year under the old lease agreement with the nursery school.
Mayor Chris White at the time called that a “financial crisis,” and said both sides should work to an agreeable solution.
Milne said after several meetings with nursery school officials, the township came up with a rent schedule the school could work with and that meets the municipality’s needs.
He added the schedule calls for smaller rent increases every six months until Jan. 1, 2013, when the rent will be “where it should be.”
The rent is to be paid in advance on the first day of each month, using the following schedule:
– $500 until the end of this month;
– $750 from July 1 to Dec. 31;
– $1,000 from Jan. 1 until June 30 of next year;
– $1,276 from July 1, 2012 until Dec. 31, 2012; and
– $1,321 from Jan. 1, 2013 until June 30, 2013, when the lease expires.
