TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 21, 2015
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authorization to commence statutory procedures to lease approximately 9 acres of District real estate located at 15185 Main Street in Lemont, Illinois; Main Channel Parcel 24.02 and part of Main Channel Parcel 24.10
Body
Dear Sir:
K.A. Steel Chemicals Inc. ("K.A. Steel") occupies 8.24 acres of District real estate located at 15185 Main Street in Lemont, Illinois and known as Main Channel Parcel 24.02 under a lease that commenced July 1, 1966, and expires June 30, 2016, and occupies Main Channel Parcel 24.10, comprising 1.08 acres, under an easement that commenced January 1, 1988, and expires June 30, 2016. K.A. Steel operates a chemical manufacturing and bulk storage facility with barge loading and unloading facilities.
The leasehold site is improved with a barge dock, office and warehouse buildings and storage tanks. The easement area is used to operate a tanker truck loading area and to maintain railroad tracks and a pump house to withdraw water from the adjacent Consumers Quarry on Main Channel Parcels 24.03 and 24.06. The annual rent under the lease is $5,184.00 and the annual rent under the easement is $5,611.21. K.A. Steel has requested a new lease and easement upon expiration of its lease and easement. It is anticipated that a portion of the current easement premises that is located directly adjacent to the leasehold area will be combined with it to become an approximate 9 acre leasehold area. The remaining easement area will continue as an easement for the duration of the new lease term as this section is located adjacent to K.A. Steel's own privately held property.
The District's technical departments have no objections to leasing this site for 39 years.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the General Counsel to commence statutory procedures to lease approximately 9 acres of District real estate located at 15185 Main Street in Lemont, Illinois; Main Channel Parcel 24.02 and part of Main Channel Parcel 24.10 upon the terms and conditions set forth above.
Requested, Ronald M. Hill, General Counsel, RMH:STM: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 May 21, 2015
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