TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 4, 2014
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to amend lease agreement dated January 1, 1954 with the Chicago Transit Authority on 8.623 of acres of District real estate located north of the O'Brien Water Reclamation Plant and east and west of the North Shore Channel in Skokie, Illinois; North Shore Channel Parcels 6.13 and 6.14, extending the lease expiration date from December 31, 2014, to June 30, 2015. Consideration shall be $17,837.50
Body
Dear Sir:
Since 1924, the Chicago Transit Authority ("CTA") and its predecessors have occupied North Shore Channel Parcels 6.13 and 6.14 located east and west of McCormick Boulevard and along the northern boundary of the O'Brien Water Reclamation Plant in Skokie, Illinois, under a series of leases to operate a rapid transit railroad line currently known as the "Yellow Line" for public transportation purposes. The annual rent is $35,675.00. The current lease expires on December 31, 2014. The CTA requested a new 39-year lease upon its expiration, but is evaluating whether leasing all 8.623 of acres is necessary.
Accordingly, the CTA is re-evaluating its land use needs at the subject location and has indicated that it is currently in the process of assessing whether a new lease on a smaller area of land is suitable for its use. The CTA has requested an amendment to its lease granting a six-month extension thereto for the continued use and operation of the rapid transit railroad line currently known as the "Yellow Line" for public transportation purposes while it re-evaluates its land use needs.
The fee of $17,837.50 represents the pro-rata share of the CTA's annual rent under its lease.
The technical departments have no objections to the CTA's request.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize an amendment to the lease agreement dated January 1, 1954 with the Chicago Transit Authority on 8.623 of acres of District real estate located north of the O'Brien Water Reclamation Plant and east and west of the North Shore Channel in Skokie, Illinois; North Shore Channel Parcels 6.13 and 6.14, extending the lease expiration date from December 31, 2014, to June 30, 2015. Consideration shall be $17,837.50.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute said lease amendment agreement after same is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MM: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 December 4, 2014
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