News photo by Crystal Nelson The Alpena Public Schools transportation facility is pictured Tuesday at 1357 M-32 in Alpena.

ALPENA — The Alpena Public Schools Board of Education on Monday held off on a decision to terminate its purchase agreement with Vautgrand Holdings, the developer working to bring Aldi to Alpena, to give it time to make a counter offer.

The board in September entered into the agreement with Vautgrand Holdings, where the developers agreed to build the district a $1 million transportation facility in exchange for the property the district’s current bus garage sits on.

However, the board’s finance committee learned last week the developer asked the district to pay additional costs related to environmental remediation at the transportation site.

The board’s attorney Gordon VanWieren, with Thrun Law Firm, said on Monday the developer is now asking the district to participate in the cost of building the new facility. The cost of building the transportation facility has increased to $1.5 million from $1 million, he said.

Superintendent Dave Rabbideau said the project was supposed to occur at no cost to the district and recommended the board walk away from the deal.

“Our current facility is appropriate and we did not necessarily go shopping because we had to get rid of this property,” Rabbideau said. “Things just came together and we found ourselves entertaining this deal.”

Rabbideau said the district is relocating its alternative high school — Alternative Choices for Educational Success Academy — to Alpena High School to save money, and couldn’t invest $500,000 into a bus garage when those dollars could be spent within the district.

He said the project was also not supposed to be much of a commitment, but the district is incurring legal costs, and staff are spending time doing the research related to the project. He said district officials have also allowed extensions in the contract so the developer could perform its due diligence.

Trustee Ken Gembel asked if the developer came back with a counter offer and Treasurer Ned Heath asked if the developer would still pay for the project if the district said it wouldn’t pay for the costs.

“I’m okay with you sending a strong message that we’ll walk away and see if they’re really serious or not,” Gembel said.

In the meantime, the board asked the property committee to determine whether there are any further environmental concerns for the bus garage property. The property committee is next scheduled to meet at 10:30 a.m. July 12 at Central Office, 2373 Gordon Road.

The deal would be brought back to the board during its July 19 meeting, scheduled for 5:30 p.m. at Central Office.