TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 18, 2014
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to advertise Contract 14-366-11 for public tender of bids a thirty-nine (39) year lease on approximately 11.66 acres of District real estate located at 3301 S. California Avenue in Chicago, Illinois; Main Channel Parcel 42.03. The minimum initial annual rental bid shall be established at $601,000.00
Body
Dear Sir:
On October 17, 2013, the District's Board of Commissioners authorized the commencement of statutory procedures to lease the subject real estate. The site is currently leased by Ameropan Oil Corporation ("Ameropan") under a lease that expires on September 30, 2014. Ameropan uses the site for the bulk storage of liquid asphalt. The lead applicant, Ameropan, has requested a new lease to continue its operations of a bulk storage facility.
Pursuant to statute, the lead applicant, Ameropan, submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
CohnReznick,LLP $6,010,000.00
Patricia McGarr, MAI
(District's Appraiser)
Realty Value Consultants, Inc. $5,560,000.00
John Urubek
Associated Property Counselors, Ltd. $5,435,000.00
Dale J. Kleszynski, MAI
It is recommended that the subject real estate's fair market value be based upon the highest of the three appraisals and established at $6,010,000.00 and that the minimum annual rental bid be established at 10% of the property's fair market value or $601,000.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the following orders:
1. The real estate consisting of approximately 11.66 acres of District real estate located at 3301 South California Avenue in Chicago, Illinois and known as Main Channel Parcel 42.03 depicted in the exhibit attached hereto be declared surplus and not currently needed for the District's corporate purposes and available for lease as set forth herein.
2. The fair market value of the 11.66 acres of real estate be established at $6,010,000.00 and that the minimum initial annual rental be established at 10% thereof or $601,000.00.
3. The Director of Procurement and Materials Management be authorized to advertise said 11.66 acres of real estate as available for lease for a term of thirty-nine (39) years at the minimum initial annual rental bid of $601,000.00 and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 14-366-11 for public tender of bids for a thirty-nine (39) year lease on approximately 11.66 acres of District real estate located at 3301 South California Avenue in Chicago, Illinois; Main Channel Parcel 42.03. The minimum initial annual rental bid shall be established at $601,000.00.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MLD:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
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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