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when it took over the Lease, natural gas being used at both 1500 Dublin Avenue and
1460 Dublin Avenue was being measured from a single meter at 1500 Dublin Avenue.
[128] Following some discussion between the parties and specifically following the
Markham meeting, White Owl agreed to apply a $8,000 a month credit for the past 12
months’ utilities and which resulted in the payment of $114,740.53 by Capitol in March
2019.
[129] On May 17, 2019, McLeod further e-mailed London on several outstanding issues
from the Markham Meeting including utilities where she advised:
As you know, we have undertaken to get the utilities separately metered. This is
well underway, but taking longer than anticipated for reasons out of our control.
We’d adjusted at $8000/mo, based on your suggestion that you’d had an informal
agreement to that effect with the prior owners. However, there is nothing among
the documentation received when we purchased the property that supports that,
and that number doesn’t seem to make a lot of sense now that the summer is
here. As discussed, we will need to reach mutually agreeable allocation of costs
until separate metering is completed. You’ll see this has been addressed in the
forbearance agreement, and, again, we’ll discuss further in the near future.
[130] Capitol’s response came in London’s proposal letter of August 8, 2019:
We are up to date based on the agreement to credit $8,000 per month. White Owl
unilaterally adjusted this amount to $1,000 per month. The agreement with Mr.
Harris was based on $96,000 per year, rendered at $8,000 per month. The
obligation to put meters into the property is in the lease and has not yet been
completed. The intention of that was to permit the parties to correct any
overage/underage once meters were installed. We understood this work was in
progress. At this point we recommend leaving the $8,000 per month adjustment
as is until such time as the meters are in at which point monthly adjustments can
be made and a measured mile can be undertaken to retroactively adjust the
previous arrangement.
[131] To this, McLeod responded in her September 15, 2019, e-mail:
White Owl had agreed to a reasonable apportionment of the utilities (sic) bills in
the meantime to provide for any use attributable to our unoccupied building
serviced by the same meters. With the vacant building being unheated in the