TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 3, 2015
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 9.66 acres of District real estate located north of the O'Brien Water Reclamation Plant and east and west of McCormick Boulevard in Skokie, Illinois; North Shore Channel Parcels 6.13 and 6.14, extending the lease expiration date from September 30, 2015 to October 31, 2015. Consideration shall be a nominal fee of $10.00
Body
Dear Sir:
The Chicago Transit Authority ("CTA") leases 9.66 acres of District real estate under a lease that commenced January 1, 1955, and, as extended, expires September 30, 2015, to operate a rapid transit railroad line currently known as the "Yellow Line" for public transportation purposes ("Lease"). The leasehold is located along the northern boundary of the O'Brien Water Reclamation Plant and east and west of McCormick Boulevard in Skokie, Illinois, and known as North Shore Channel Parcels 6.13 and 6.14. The annual rent under the Lease through June 30, 2015 was $35,675.00. The rent under the lease extension, for the period of July 1, 2015, through September 30, 2015, is a nominal fee of $10.00.
The Lease was originally set to expire on December 31, 2014. Prior to the 2014 expiration, the CTA indicated that it anticipated leasing less than the current 9.66 acres that it leases under its current Lease, but needed additional time to review its land use needs under a new lease. Accordingly, on December 4, 2014, the Board of Commissioners authorized a six (6) month extension to the Lease to allow the CTA the additional time it requested. At its June 18, 2015, meeting, the Board granted a three (3) month extension of the Lease to allow for repairs to be made to the railroad line. The CTA has now requested a further extension of its Lease to October 31, 2015, as the repairs remain ongoing.
A nominal fee of $10.00 is again recommended for this extension period since the CTA is presently unable to conduct its normal operations on the site.
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 9.66 acres of District real estate located north of the O'Brien Water Reclamation Plant and east and west of McCormick Boulevard in Skokie, Illinois; North Shore Channel Parcels 6.13 and 6.14, extending the lease expiration date from September 30, 2015 to October 31, 2015. Consideration shall be a nominal fee of $10.00.
It is further 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 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 September 3, 2015
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