TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 18, 2014
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to grant a 25-year, non-exclusive easement to Equilon Enterprises LLC d/b/a Shell Oil Products US on 0.773± acres of District real estate located at the Gloria Alitto Majewski Reservoir site to construct, operate, maintain, repair and remove two (2) 6-inch pipelines. Consideration shall be an initial annual fee of $15,153.00
Body
Dear Sir:
Equilon Enterprises LLC d/b/a Shell Oil Products US ("Shell Oil") must relocate its jet fuel pipelines that service O'Hare Airport as a result of the Illinois State Toll Highway Authority's ("ISTHA") I-90 Elgin O'Hare expansion project. Shell Oil's pipelines are currently located within ISTHA and IDOT rights-of-way along I-90 and Elmhurst Road. Shell Oil has requested a 25-year, non-exclusive easement to construct, operate, maintain, repair and remove two (2) 6-inch pipelines within the District's Gloria Alitto Majewski Reservoir site ("Majewski Reservoir Site").
A companion transmittal letter seeking authority to issue Shell Oil a 1-year construction permit on 3.287± acres of District real estate located within the Majewski Reservoir Site for use as a construction staging area for its jet fuel pipeline relocation project is also being presented at today's meeting.
The District's technical departments have reviewed Shell Oil's request for an easement and have no objections thereto.
The proposed easement premises are located within a 50-acre area under lease to the Mount Prospect Park District ("Mount Prospect") for recreational purposes until 2050. Mount Prospect has indicated that it has no objection to this easement grant; however, the easement will be subject to its express written consent.
A fair market value appraisal has valued the easement premises in the amount of $151,530.00. Accordingly, an initial annual easement fee of $15,153.00, representing 10% of the appraised fair market value is therefore recommended.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the grant of a 25-year, non-exclusive easement to Equilon Enterprises LLC d/b/a Shell Oil Products US on 0.773± acres of District real estate located at the Gloria Alitto Majewski Reservoir site to construct, operate, maintain, repair and remove two (2) 6-inch pipelines. Consideration shall be an initial annual fee of $15,153.00.
It is also requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:NPE:vp
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Mariyana T. Spyropoulos, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 18, 2014
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